HighCo: Organic Gross Margin +2.7% in H1 2026, Sogec Restructuring Underway
HighCo reports an organic gross margin growth of +2.7% in the first half of 2026, driven by strong performance in France and the rise of Retail Media. The group confirms its annual targets, though its half-year operating result will be impacted by restructuring costs related to Sogec, with an employment protection plan approved for 64 employees.
France and Retail Media Drive Organic Growth
In the first half of 2026, HighCo recorded a published gross margin of €39.21 million (+26.7%), of which €31.79 million was on a like-for-like basis and at constant exchange rates (+2.7%). This moderate organic growth contrasts with the figures that include contributions from the acquisitions of Sogec and Budgetbox made in 2025. France accounts for 91.7% of the group's published gross margin and shows an organic growth of +6.1% for the semester, fueled by the Retail Activation division (65.2% of the group's gross margin), driven by HighCo Nifty and HighCo Merely solutions. The Retail Media division significantly accelerates with an organic growth of 7.8% for the semester, in line with the group's expectations. Conversely, International operations saw a decline of 20.0% in the first half. In the second quarter, Belgium fell by 22.4%, due to the persistent decline in coupon processing and management of deferred promotional offers.
Operating Result Squeezed by Sogec's Restructuring Costs
The group anticipates an increase in adjusted ordinary activities result for the semester, with an adjusted operating margin slightly above 16%, compared to 16.3% in the previous semester. However, the half-year operating result will be impacted by the restructuring costs of Sogec, for which an employment protection plan has been approved for 64 employees. This expense, not specified in the release, will be provisioned on June 30, 2026, and absorbed in the half-year operating result. The group notes that the operational integration of Sogec and Budgetbox flows was successfully carried out during the semester, but structural optimization is still ongoing.
2026 Guidance Confirmed Despite International Tensions
HighCo reaffirms its targets for the full year 2026: a gross margin exceeding €78 million, incorporating a full year of Sogec and Budgetbox, representing a growth of more than +17% compared to €66.65 million in 2025. Concurrently, the adjusted operating margin is expected to be above 12%, very close to that of 2025 (12.1%), suggesting stability in profitability despite the integration. The challenge for investors lies in the group's ability to accelerate organic growth beyond +2.7% in a context where international performance remains very degraded. The group plans to allocate its financial resources to the restructuring of Sogec's activities in the second half of the year.
