Editoria e Media
HighCo: Q1 2020 Gross Profit
Aix-en-Provence, 22 April 2020 (6.00 p.m.)
HIGHCO: FIRST QUARTER DOWN 10.3% (GP) IMPACTED BY COVID-19
Update on current situation: Impacts of the pandemic on Group businesses
Business decline in Q1 2020 despite a position of slight growth at end-February (GP)
More pronounced decline expected in Q2 2020 than in Q1
COVID-19: Update of measures taken by the Group
Annual General Meeting of 11 May 2020 under closed session
§
Unaudited data.
Like for like: Based on a comparable scope and at constant exchange rates (i.e. applying the average exchange rate over the period to data from the compared period).
Didier Chabassieu, Chairman of the Management Board, stated,
“After seven consecutive years of growth, and despite a good start to 2020, the Group's performance has come to an abrupt halt with the COVID-19 health crisis. Given this unprecedented health and economic crisis, I'm proud of our managers and employees who have shown their great ability to adapt and respond to change. I'm confident in the organisational structure implemented that will enable us to continue supporting our clients . In this year of its 30 anniversary, HighCo has grown into a healthy group, prepared to overcome this challenge.”
UPDATE ON CURRENT BUSINESS ENVIRONMENT
The pandemic is having a significant impact on the Group's businesses, mainly due to:
The Group is maintaining the ad hoc organisational structure implemented at each subsidiary to continue supporting its clients in the best possible way.
BUSINESS DECLINE IN Q1 2020 DESPITE A POSITION OF SLIGHT GROWTH AT END-FEBRUARY
After slight business growth in line with the budget at the beginning of the year, the measures taken to limit the spread of the COVID-19 pandemic began impacting all the businesses of our clients, brands and retailers, in March. As a result, HighCo registered a 27.4% decline in March alone. This led to a 10.3% drop in the Group's gross profit to €20.79 M in Q1 2020.
Digital held up better, posting a decline limited to 7.8% like for like. The segment was driven by Mobile businesses, which grew in the first quarter. The share of Digital in total Group business continued to rise, up from the reported figure of 53.4% in Q1 2019 to 54.9% in Q1 2020.
Strong decline in France
Down 13.6%, France posted gross profit of €15.3 M in Q1 2020 , representing 73.6% of the Group's gross profit. Excluding Mobile businesses, which showed slight growth over the quarter, all other businesses recorded steep declines in March.
Stability in International business
International gross profit rose slightly by 0.5% like for like to €5.49 M in Q1 2020 , representing 26.4% of the Group's gross profit. In Benelux, gross profit remained stable at €5.18 M for the quarter, benefiting from the later implementation of strict lockdown measures (early April) in Luxembourg. Showing growth of 9.8%, business in Southern Europe is on an upward trend and accounts for 1.5% of the Group's gross profit.
MORE PRONOUNCED DECLINE EXPECTED IN Q2 2020 THAN IN Q1
As anticipated at the end of March and following the extension of lockdown restrictions,
Q2 2020 is expected to be impacted even harder by government measures and to show a significant decline
both in and outside France.
All business activities will be impacted due to the following factors:
COVID-19: UPDATE OF MEASURES TAKEN BY THE GROUP
Employees
HighCo has taken all necessary measures to limit the effects of the pandemic on its employees:
Cash position and action plan
At end-March, gross cash (excluding operating working capital) totalled €7.8 M (€10.56 M at 31 December 2019).
The Group has taken the following measures in response to the drop in business activity and to protect its cash position:
2019 ANNUAL FINANCIAL REPORT AND 2020 ANNUAL GENERAL MEETING
HighCo's 2019 Universal Registration Document was filed with the Autorité des Marchés Financiers (French financial markets authority) on 16 April 2020 under No. D20-0300. The document contains the annual financial report and is available on HighCo's website ( www.highco.com ), under Investors>Annual Report.
Given the current COVID-19 pandemic and government measures taken to limit gatherings, the Company has announced that the Annual General Meeting will be held exceptionally under closed session on 11 May 2020. The notice of convocation, published in the journal for the publication of official legal notices ( BALO ) of 20 April 2020 and on the Company's website www.highco.com (under Investors > Annual General Meetings) explains how to register to participate in the meeting . The Company also indicates that it has extended the deadline for submitting written questions, which shareholders can send by email to comfi@highco.com along with their certificate of registration, to Wednesday, 6 May 2020 at 6 p.m.
About HighCo
As an expert in data marketing and communication, HighCo continuously innovates to work with brands and retailers in meeting the retail challenges of tomorrow.
Listed in compartment C of Euronext Paris, and eligible for SME equity savings plans (“PEA-PME”), HighCo has more than 750 employees and since 2010 has been included in the Gaia Index, a selection of 70 responsible Small and Mid Caps.
Your contacts
Cécile Collina-Hue
Cynthia Lerat
Managing Director Press Relations
+33 1 77 75 65 06 +33 1 77 75 65 16
comfi@highco.com c.lerat@highco.com
Upcoming events
Publications take place after market close .
Q2 and H1 2020 Gross Profit: Thursday 16 July 2020
2020 Half-year Earnings: Wednesday 26 August 2020
Conference call on 2020 half-year earnings: Thursday 27 August 2020
Q3 and 9-month YTD 2020 Gross Profit: Wednesday 14 October 2020
Q4 and FY 2020 Gross Profit: Wednesday 20 January 2021
HighCo is a component stock of the indices CAC Small (CACS), CAC Mid&Small (CACMS) and CAC All-Tradable (CACT) and Euronext Tech Croissance (FRTPR).
ISIN: FR0000054231
Reuters: HIGH.PA
Bloomberg: HCO FP
For further financial information and press releases, go to www.highco.com .
This English translation is for the convenience of English-speaking readers. Consequently, the translation may not be relied upon to sustain any legal claim, nor should it be used as the basis of any legal opinion. HighCo expressly disclaims all liability for any inaccuracy herein.
Attachment
2321 Rosecrans Avenue. Suite 2200
90245 El Segundo Stati Uniti