HighCo

Half-year results 2020 - Seite 2

FINANCIAL PERFORMANCE IN H1 2020

Decline less steep than expected

H1 2020 gross profit amounted to €40.42 M, down 16.1% on a reported basis and like for like. The decline was less steep than expected thanks to a recovery in June after lockdown restrictions were eased (up 2.7% like for like). Digital continued to hold up better, posting a decline limited to 9.4% like for like. The share of Digital in total Group business rose significantly to 59.3% in H1 2020 (54.8% on a reported basis in H1 2019).

In France, with the 7% upturn in business in June, the business decline in H1 2020 was limited to 14.8% like for like, for gross profit of €30.95 M, or 76.6% of the Group’s total gross profit. Digital business held up well (down 6.9% like for like), with its share of total French business at 67.4% in H1 2020.

After a stable first quarter, International business fell sharply by 20.3% like for like in H1 2020 to €9.47 M, with Benelux showing a decline of 21.3% and Southern Europe (Spain and Italy) remaining stable.

Drop in earnings but healthy profitability

The business decline resulted in a 44.7% drop in adjusted headline PBIT to €7.03 M in H1 2020 with:

• France: Down 41.8% to €6.48 M (H1 2019: €11.13 M), with adjusted operating margin holding strong at 20.9%;
• International business: Down 65.7% to €0.55 M (H1 2019: €1.59 M), with adjusted operating margin remaining positive at 5.8%.

Adjusted operating margin (adjusted headline PBIT/gross profit) came to 17.4%, down 900 basis points compared with H1 2019 (26.4%).

The drop in adjusted headline PBIT was partly offset by the write-back of the provision on performance share plans (H1 2020: income of €0.78 M; H1 2019: expense of €0.55 M). This resulted in a less steep decline in recurring operating income and operating income of 36.4% to €7.63 M (H1 2019: €12 M). Restructuring costs remained stable (H1 2020: €0.18 M; H1 2019: €0.17 M).

The tax expense decreased 38.4%, totalling €2.78 M in H1 2020 (H1 2019: expense of €4.52 M).

Adjusted attributable net income fell 48.7% to €3.57 M (H1 2019: €6.96 M). On a reported basis, the figure stood at €4.13 M, down 37% (H1 2019: €6.56 M).

The Group recorded EPS in H1 2020 of €0.20, down 36.5% compared with H1 2019 (€0.31).

¹ 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).