Europris (EPR) Q4 2024 earnings summary

Executive summary

• Group sales reached NOK 4.4 billion in Q4 2024, up 42.5% year-over-year, with organic growth of 4.9%, driven by the ÖoB acquisition and strong performance in Norway.

• Full-year group sales totaled NOK 12.8 billion, up 34.7%, with organic growth of 4.3%.

• Q4 EBIT was NOK 624 million (+12.7% YoY), with net profit to parent of NOK 443 million; full-year EBIT was NOK 1,237 million, with net profit to parent NOK 839 million.

• Integration of ÖoB in Sweden is progressing, though it contributed a negative EBIT of NOK 41 million in Q4 and NOK 102 million for the full year due to integration costs and clearance sales.

• The board proposes a dividend of NOK 3.50 per share, up 7.7% year-over-year, with a payout ratio of 68.2%.

Financial highlights

• Q4 gross margin was 42.5% (organic 46.1%), diluted by ÖoB; full-year gross margin was 41.7% (organic 44.7%).

• Q4 opex-to-sales ratio was 22.3% (organic 20.0%); full-year opex-to-sales was 24.7% (organic 24.1%).

• Cash from operations was NOK 1.5 billion, with net debt (excl. leases) at NOK 720 million and liquidity reserves of NOK 2.2 billion.

• Q4 EBITDA was NOK 884 million (20.2% margin); full-year EBITDA was NOK 2,160 million (16.9% margin).

• Earnings per share: Q4 NOK 2.72; full-year NOK 5.16.

Outlook and guidance

• Consumer outlook is improving in Norway and Sweden as inflation falls and real wages rise; interest rates are expected to decrease in Norway in 2025.

• ÖoB integration is on track, with category upgrades planned for 2025–2026 and long-term targets of SEK 5 billion sales and 5% EBIT margin by 2028.

• Board proposes an ordinary dividend of NOK 3.50 per share for 2024.