HighCo

Q1 2020 Gross Profit - Seite 2

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 

FRANCE	Gross Profit (in € M)		2020/2019 Change		% Total gross profit
	2020	2019 reported	Reported	LFL
Q1	15.30	17.70	-13.6%	-13.6%	73.6%

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 (in € M)		2020/2019 Change		% Total gross profit
	2020	2019 reported	Reported	LFL
Q1	5.49	5.47	+0.5%	+0.5%	26.4%
o/w Benelux	5.18	5.18	+0.0%	+0.0%	24.9%

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.