HighCo: +26% Gross Margin in Q1, But Growth Largely Driven by Acquisitions
The marketing and communication group HighCo reports compliance with expectations for the first quarter of 2026, with an increase in activity largely driven by the integration of its recent acquisitions. However, this pattern masks contrasting dynamics: the Retail Activation division in France shows a solid growth trajectory, while international markets, notably Belgium, experience significant reductions in activity. The guidance for the full year 2026 is maintained, but the composition of this growth reveals a dependency on integrations rather than purely organic expansion.
Financial Performance in Detail
HighCo's gross margin reached €19.93 million in Q1 2026, marking a 26.4% increase in reported figures. However, this rise includes contributions from Sogec and BudgetBox, acquired in 2025, amounting to €3.75 million in the first quarter. On a like-for-like basis and at constant exchange rates, growth is limited to 2.6%, indicating that the organic growth of the group's historical activities remains contained. In France, activities excluding acquisitions grew by 6.2% organically. The Retail Activation division, which accounts for 69.7% of the group's published gross margin, confirms its momentum with a 9.1% increase on a comparable basis. This growth is supported by the development of HighCo Nifty (mobile coupons) and HighCo Merely (promotional offer management platform), as well as an increase in the volume of dematerialized coupons processed. The Retail Agencies division, representing 19.5% of the gross margin, remains stable with a growth of 0.2%.
Challenges in International Markets
Internationally, the situation has significantly deteriorated. Activities outside of France fell by 20.1% to €1.75 million, now representing only 8.8% of the published gross margin. Belgium, a major market for HighCo, recorded a particularly sharp decline of 22.5% to €1.51 million, a consequence of a noticeable decrease in coupon processing and management of deferred promotional offers. Spain fares better with a minimal decline of 0.5%, maintaining a 1.2% share in the group's gross margin. This international contraction tempers the positive interpretation of French performance and raises questions about the recovery of markets outside of France.
Outlook and Strategic Moves
Despite this contrasting geography, HighCo confirms its guidance for 2026. The group believes that the performances in the first quarter and the expected level of activity in the second quarter justify maintaining its annual forecasts. The group will allocate resources to the restructuring and workforce reduction project at Sogec, as well as the implementation of an employment safeguard plan. Furthermore, HighCo will hold its general meeting on May 27, 2026, during which the distribution of a dividend balance of €0.25 per share for the fiscal year 2025 will be proposed. The challenge for investors lies in the group's ability to generate accelerated organic growth beyond the integration cycle and to reinvigorate its activities in international markets.
