Europris (EPR) Q2 2025 earnings summary

Executive summary

• Group sales reached NOK 3.8 billion in Q2 2025, up 22.3% year-over-year, driven by strong Norway performance and the inclusion of ÖoB, with Norway's EBIT up 28.9% and Sweden reporting an EBIT loss.

• Integration and transformation of ÖoB are progressing, with milestones in category upgrades, IT harmonization, and the first fully remodeled store in Uddevalla showing promising results.

• SBTi approved science-based net-zero targets for 2050, and the company celebrated its 10-year listing anniversary with a 218% total shareholder return.

• Net profit to parent was NOK 276 million in Q2, positively impacted by accounting effects from the ÖoB acquisition.

• Group performance benefited from Easter timing and ÖoB inclusion, though Sweden's losses offset Norway's gains.

Financial highlights

• Q2 2025 group sales: NOK 3,802 million (+22.3%); H1 2025: NOK 6,740 million (+31.3%).

• Q2 EBIT: NOK 423 million (up from 339); H1 EBIT: NOK 386 million (down from 445), mainly due to Sweden.

• Q2 group gross margin: 40.6% (down 1.3pp); H1 gross margin: 39.8% (down 2.6pp), diluted by ÖoB inclusion and currency effects.

• Q2 net profit: NOK 276 million (up from 266); H1 net profit: NOK 196 million (down from 313).

• Cash from operating activities YTD: negative NOK 40 million, mainly due to increased inventories and timing of payables.

Outlook and guidance

• Confident in long-term target for ÖoB: SEK 5 billion sales and 5% EBIT margin by 2028.

• Plans to open around five new stores per year in Norway, with potential for up to 320 stores.

• Positive outlook for purchasing prices from Asia due to lower raw material costs and factory capacity.

• Consumer sentiment expected to remain positive, supported by lower interest rates, real wage growth, and lower inflation.

• Ongoing focus on category harmonization, joint sourcing, and customer experience improvements.