Europris (EPR) Q1 2025 earnings summary

Executive summary

• Group sales rose 45% year-over-year to NOK 2.9 billion, mainly due to the ÖoB acquisition, with organic growth at 1.2% despite negative Easter timing and one less calendar day.

• Gross margin declined to 38.7%, down 4.6 percentage points, reflecting ÖoB's lower margin and NOK 34 million in unrealised currency losses; organic gross margin was 42.9%.

• EBIT was negative NOK 37 million, with a NOK 115 million EBIT loss from ÖoB; net profit to parent was negative NOK 80 million, compared to a positive NOK 47 million last year.

• Integration of ÖoB is progressing as planned, with ongoing clearance sales, category upgrades, and store remodelling expected to improve performance.

• The quarter was impacted by a late Easter, volatile currency markets, and the ongoing turnaround of ÖoB.

Financial highlights

• Total operating income was NOK 2,938 million, with gross profit at NOK 1,136 million and gross margin at 38.7%.

• Cash flow from operations was negative NOK 544 million, reflecting higher working capital and inventory build-up.

• Net debt stood at NOK 5,014 million (NOK 1,521 million excluding leases), with liquidity reserves of NOK 1,430 million.

• Opex-to-sales ratio increased to 31.1% (up 1.6 percentage points year-over-year).

• EBITDA was NOK 224 million, with an EBITDA margin of 7.6%.

Outlook and guidance

• Management remains confident in achieving SEK 5 billion in ÖoB sales and a 5% EBIT margin by 2028.

• Category upgrades and store remodelling in ÖoB are expected to drive gradual improvement in sales and margins through 2025–2026.

• The group is well positioned for the spring and summer season, with early spring weather expected to boost sales.

• Macroeconomic volatility and geopolitical risks are being closely monitored.

• Several category upgrades in ÖoB to be completed in Q2, with more planned for the rest of 2025 and 2026.