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First Quarter Fiscal Year 2019 Financial Results

Author: Mark Tiedens

NEWS

Growth in revenue and EBITDA

HH Global today announced unaudited financial results for the three months ended June 2018.

First quarter 2019 highlights

  • Revenue was £87.8 million in the first quarter, an increase of 20.1% compared with £73.1 million in the first quarter of FY 2018.
  • Gross profit was £20.9 million, or 23.8% of gross revenue in the first quarter, a 23.7% increase compared to £16.9 million, or 23.1% of gross revenue, in the same period of last year.
  • Non-GAAP adjusted EBITDA was £4.0 million in the first quarter, reflecting 56.5% growth as compared to £2.5 million in the first quarter of FY 2019.

Business highlights

  • Received commitments for renewal or expansion of existing or new enterprise contracts with the collective total of approximately £81 million of annual gross revenue at full run rate.
  • Continued programme expansion with existing clients in Latin America, the most significant of which is with a multinational food and beverage company in Argentina, Brazil, Ecuador, Colombia, Chile, and Ecuador.  
  • Included on the ninth annual Sunday Times HSBC International Track 200, recognising rapid growth in international markets.
  • Opened a Central Sourcing Office in Shenzhen, China supporting a broad range of product sourcing categories including point of sale materials, promotional products, and secondary packaging.

“Fiscal year 2019 is off to a great start, with all of our regions posting solid growth,” said HH Global Chief Executive Officer Robert MacMillan. “We are pleased by recent renewals and solution expansion by many of our clients, reflecting a very high-level of satisfaction with our services.”

“We are operating well on all fronts leading to strong financial results,” said Edward Parsons, Group Chief Financial Officer of HH Global. “Past investments in infrastructure has helped manage expenses closely, leading to a significant increase in EBITDA during this quarter. Our growth trajectory will require that we continue investing in our business for the longer term.”