Europris (EPR) Q2 2024 earnings summary

Executive summary

• Completed the acquisition of ÖoB in May 2024, marking the largest acquisition and a strategic move to create a leading Nordic discount variety retailer.

• Integration of ÖoB is underway, focusing on harmonizing categories, joint sourcing, operational synergies, and improving customer experience.

• Group sales reached NOK 3.1 billion in Q2 2024, up 34.6% year-over-year, with organic growth of 3%.

• The group now operates 378 stores across the Nordics, serving 57 million customers annually.

• Recognized among Europe's top climate leaders by Financial Times and Statista.

Financial highlights

• Q2 group sales: NOK 3.1 billion, up 34.6% year-over-year; organic growth 3%.

• Q2 EBIT: NOK 339 million, down NOK 23 million from last year; EBIT margin 10.9%.

• Net profit to parent: NOK 266 million, up from NOK 260 million last year.

• Gross margin in Q2: 41.9%, down 2.6 percentage points due to ÖoB's dilutive effect.

• Cash from operating activities was NOK 208 million, stable year-over-year.

Outlook and guidance

• Ambition to grow ÖoB sales by SEK 1 billion and achieve a 5% EBIT margin by 2028.

• NOK 300 million investment program planned for store upgrades and IT modernization.

• Long-term opportunity to expand ÖoB’s store network by 30-50 stores.

• Expects NOK 20-40 million in purchasing synergies for Norwegian operations.

• Expectation for ÖoB to be profitable in H2, driven by the Christmas season, but full turnaround will take several years.