HighCo: Q1 2025 GROSS PROFIT

Core Viewpoint - HighCo experienced a decline in business activity in Q1 2025, with gross profit down 6.4% year-on-year on a like-for-like basis, as anticipated. The company confirmed its guidance for 2025 despite the downturn, highlighting growth in the Activation division in France [1][4][14]. Financial Performance - Gross profit for Q1 2025 was €15.77 million, reflecting a 6.4% decrease like-for-like compared to €16.85 million in Q1 2024 [2][5]. - The reported decline in gross profit was 16.3%, indicating a significant drop in overall business performance [5]. - The operating margin remained above 11%, although the gross profit for 2024 was restated to €61.03 million, with an operating margin of 12.4% [17]. Division Performance - The Activation division in France showed growth of 1.4%, contributing significantly to the overall gross profit, which accounted for 71% of the Group's total [6][7]. - The Mobile division also experienced a 2% increase, excluding the impact of High Connexion [7]. - The Consulting & In-store media selling division faced a sharp decline of 32.2%, primarily due to restructuring within the Casino Group [6][8]. Regional Insights - In France, gross profit fell to €13.58 million, down 6.4% year-on-year, representing 86.1% of the Group's total gross profit [8]. - International business gross profit decreased by 6.3% to €2.19 million, accounting for 13.9% of total gross profit, with Belgium and Spain also reporting declines [9][10]. Strategic Developments - HighCo is in the process of selling its subsidiary High Connexion, with conditions precedent expected to be fulfilled by June 30, 2025 [11][12]. - The company plans to propose an exceptional dividend of €1 per share following the completion of the sale [13]. Future Outlook - HighCo confirmed its guidance for 2025, anticipating a continued decline in Q2 before a potential return to growth in the latter half of the year [4][14].