In This Article:
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Group Sales: NOK2.9 billion, an increase of 45% from last year.
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EBIT: Minus NOK37 million.
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Net Profit to Parent: Negative NOK80 million compared to a positive NOK47 million last year.
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Cash Flow from Operations: Negative NOK544 million due to higher net working capital.
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Net Debt: NOK5 billion, or NOK1.5 billion excluding lease liabilities.
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Cash and Liquidity Reserves: NOK1.4 billion.
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Sales in Norway: NOK2.1 billion, up 1.2%.
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Gross Margin in Norway: 42.9%, down 0.4 percentage points, but up 1.7 percentage points when adjusted for unrealized currency effects.
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OoB Sales: NOK0.9 billion.
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OoB Gross Margin: 29.8%, negatively impacted by NOK10 million unrealized currency loss.
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OoB EBIT Loss: NOK115 million.
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New Store Openings: Three new stores in Norway, with one additional store opening on the day of the call.
Release Date: April 10, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Europris ASA (STU:2RG) reported a 45% increase in group sales, reaching NOK2.9 billion.
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The company has successfully opened three new stores in central locations in Norway, contributing positively to sales.
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Europris ASA has completed the modernization of its IT platform, including a new ERP system in Sweden, on time and within budget.
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The company is well-positioned for the upcoming spring and summer seasons, with early spring weather expected to boost sales.
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The turnaround progress for OoB is on track, with plans to grow sales to SEK5 billion and achieve a 5% EBIT margin by 2028.
Negative Points
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Europris ASA reported a lower EBIT, ending at minus NOK37 million, primarily due to unrealized currency losses.
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The company experienced a NOK34 million unrealized currency loss in the first quarter, compared to a NOK19 million gain last year.
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OoB recorded an EBIT loss of NOK115 million, impacted by clearance sales and integration costs.
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Customer traffic in Sweden remains low, and the company needs to improve the customer experience to drive more traffic.
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Net profit to parent was negative at NOK80 million, compared to a positive NOK47 million last year.
Q & A Highlights
Q: Could you give some color on the footfall effects from the clearance sales you are now doing in OoB? Any positive effects, negative effects, how are consumers reacting to those? A: Espen Eldal, CEO: The clearance sales have not significantly impacted footfall. We are shifting the product mix towards more nonfood items, but we are not yet a destination for nonfood. This transition will take time.