Europris (EPR) Q3 2024 earnings summary

Executive summary

• Group sales rose 50.4% year-over-year in Q3 2024 to NOK 3.2 billion, driven by the ÖoB acquisition and 4.4% organic growth.

• Gross margin declined to 39.7%, mainly due to lower-margin ÖoB and campaign-driven sales.

• EBIT was NOK 168 million, down NOK 67 million, with a NOK 45 million loss in Sweden and a decline in Norway.

• Net profit attributable to parent was NOK 84 million, down NOK 60 million year-over-year, impacted by negative EBIT from ÖoB and unrealised loss on interest rate swaps.

• Integration of ÖoB is progressing as planned, with operational improvements, leadership transition, and harmonisation underway.

Financial highlights

• Q3 2024 group sales: NOK 3.2 billion (+50.4%); organic growth: 4.4%.

• Gross margin: 39.7% (down 4–5.6 percentage points); organic decline: 1.6 percentage points.

• EBIT: NOK 168 million (down NOK 67 million); organic EBIT margin: 9.5%.

• Net profit: NOK 84 million (down NOK 60 million year-over-year); YTD net profit: NOK 396 million.

• Net debt stood at NOK 5.1 billion (NOK 1.6 billion excluding lease liabilities); liquidity reserves at NOK 1.36 billion.

Outlook and guidance

• Consumer caution persists due to high inflation and interest rates, but inflation is easing and rates are expected to fall in Norway in 2025.

• Campaigns and consumables are driving sales but pressuring margins.

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

• Well positioned for the Christmas season with sufficient inventory.

• OPEX growth in Norway expected to end below 10% for the year.