HighCo: Operating Margin Declines Despite 6.5% Growth in Adjusted OAO
HighCo releases its 2025 results showing a 6.5% increase in adjusted Ordinary Operating Results (OAO) to 8.04 million euros amid business growth. However, this improvement is accompanied by a decline in the adjusted operating margin to 12.1%, while international performance significantly worsens. The group continues its strategic refocus on promotional activation.
Financial Performance and Strategic Developments
In 2025, HighCo reported a gross margin of 66.65 million euros in published data, including the acquisitions of Sogec and BudgetBox, and 62.10 million euros at constant scope and exchange rates (CER), up by 1.8%. The Activation division now accounts for 61.7% of the group's gross margin. In France, excluding acquisitions, organic growth reached 3.9% at 54.69 million euros (CER). The Activation division there saw a 12.3% increase, notably through the development of HighCo Nifty and HighCo Merely solutions. Internationally, the situation is mixed: activity declined by 11.8% to 7.42 million euros. In Belgium, the gross margin decreased by 13.0% to 6.58 million euros, linked to the reduction in coupon processing and deferred promotional offers.
Adjusted OAO and Operational Results
The adjusted OAO stood at 8.04 million euros in 2025, up by 6.5%, with a strong increase in France (+21.1% to 7.73 million euros) and a marked decline internationally (-73.2% to 0.31 million euros). The adjusted operating margin was 12.1%, down by 30 basis points from 2024. The adjusted current operating result reached 7.79 million euros, up by 20.6%. However, including charges related to free share allocation plans (1.84 million euros), the current operating result was 5.95 million euros, down by 7.9%. The effective tax rate increased to 37.1%, from 24.8% in 2024.
Cash Flow and Financial Position
The cash flow from operations amounted to 11.58 million euros in 2025, down from 2024. As of December 31, 2025, HighCo had a net cash position of 76.83 million euros, compared to 80.69 million euros a year earlier. Excluding net working capital resources, the net cash stood at 5.14 million euros.
