Europris (EPR) Q2 2024 earnings summary

Executive summary

• Completed acquisition of ÖoB (Runsvengruppen) in May 2024 for NOK 200.5 million, marking the largest acquisition in group history and expanding into the Nordic market.

• Integration plan for ÖoB is underway, focusing on harmonizing categories, joint sourcing, and operational synergies to create a leading Nordic discount variety retailer.

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

• Europris recognized among Europe's top climate leaders by Financial Times and Statista for sustainability efforts.

Financial highlights

• Q2 group sales: NOK 3.1 billion (up 34.6%); organic growth 3%; H1 sales: NOK 5.1 billion (up 21%).

• Q2 EBIT: NOK 339 million (down NOK 23 million year-over-year); EBIT margin 10.9% (down 4.8pp); ÖoB contributed a negative EBIT of NOK 16 million.

• Net profit to parent: NOK 266 million in Q2 (up from NOK 260 million); H1 net profit NOK 313 million (down NOK 18 million year-over-year).

• Gross margin Q2: 41.9% (down 2.6pp); organic gross margin 44.7%; ÖoB's gross margin 32.4%.

• Opex-to-sales ratio Q2: 23.6% (up 2.1pp); cash from operating activities Q2: NOK 208 million, stable year-over-year.

Outlook and guidance

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

• NOK 300 million investment program planned for store upgrades and IT modernization, focused on current stores.

• Purchasing synergies for Europris estimated at NOK 20–40 million by 2028.

• No immediate sales growth expected for ÖoB in 2024; improvements expected to materialize gradually.

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