Europris (EPR) Q1 2026 earnings summary

Executive summary

• Q1 2026 saw total sales rise 12.3% to NOK 3.3 billion, driven by strong like-for-like growth in Norway (14.7%) and Sweden (7.7%), with early Easter timing and robust operational execution boosting results by an estimated 6 percentage points.

• EBIT turned positive at NOK 71 million, up from a loss of NOK 37 million last year, and net profit to parent was NOK 4 million, compared to a loss of NOK 80 million.

• The group continued its turnaround plan in Sweden, with encouraging results from upgraded stores and ongoing store modernization.

• Operational improvements in supply chain and in-store execution contributed to positive momentum, especially in Sweden.

• Expanded loan facilities by NOK 1 billion, ensuring financial flexibility for future growth.

Financial highlights

• Group sales reached NOK 3.3 billion, up 11.6% in constant currency, with gross margin improving to 39.5% (up 0.8 percentage points).

• EBIT improved to NOK 71 million (from -37 million), EBIT margin at 2.2%, and EPS rose to NOK 0.03 (from -0.49).

• Net profit to parent was NOK 4 million, up from a loss of NOK 80 million last year.

• Cash flow from operations was negative NOK 163 million, an improvement from negative NOK 544 million last year.

• Net debt excluding lease liabilities reduced to NOK 1,302 million, and cash and liquidity reserves increased to NOK 2,644 million.

Outlook and guidance

• Expectation of a negative Easter effect in Q2, offsetting Q1's boost.

• Inflation and energy costs remain elevated, with possible rate hikes in Norway and continued geopolitical volatility.

• Real wage growth anticipated in both Norway and Sweden, but consumers likely to remain price-conscious.

• Confident in long-term turnaround plan for Sweden, targeting SEK 5 billion in sales and 5% EBIT margin by 2028, with gradual improvements expected from 2027.

• The group is well positioned for the spring and summer seasons, focusing on value and campaigns.