Europris ASA Q2 2025 Earnings Call Highlights: Sales Growth and Strategic Expansion Drive EBIT Increase

Europris ASA reported strong Q2 2025 results with 11.7% sales growth in Norway and a 28.9% increase in EBIT. The company's integration of AoB in Sweden is progressing well, and segment Norway showed a 6.9% sales growth for the first half of the year with a 16.1% EBIT increase. Net debt is NOK 5.3 billion, and cash and liquidity reserves stand at NOK 1.1 billion.

Europris ASA (FRA:2RG), Norway's largest discount variety retailer, reported robust financial performance for the second quarter of 2025. The company achieved an impressive 11.7% sales growth in Norway, accompanied by a 28.9% increase in EBIT. These results underscore the company's strong operational performance and strategic direction.

Key Highlights

Norway Segment:
- Sales Growth: The Norway segment reported a 11.7% sales growth in the second quarter and a 6.9% increase for the first half of the year.
- EBIT Increase: EBIT for the Norway segment grew by 28.9% in the second quarter and 16.1% for the first half of the year.
- Gross Margin: The gross margin in Norway increased by 0.5 percentage points, excluding unrealized currency impact.
- Operating Efficiency: The operating expenditure (Opex) to sales ratio improved by 0.6 percentage points.

Sweden Segment:
- The integration of the Swedish discount variety retailer ÖoB is progressing well, with successful category upgrades and a positive response from customers.
- The second quarter EBIT for the Sweden segment was NOK 457 million, up by 28.9%.
- The first half EBIT for the Sweden segment was NOK 535 million, up 16.1%.

Financial Performance

- Group Sales: Total group sales amounted to NOK 3,802 million, representing a 22.3% increase.
- EBIT: Group EBIT was NOK 423 million, up 11.1%.
- Net Debt: Net debt stood at NOK 5.3 billion, excluding lease liabilities.
- Cash and Liquidity Reserves: Cash and liquidity reserves were NOK 1.1 billion.

Outlook

The company remains optimistic about its long-term ambitions, aiming to grow the ÖoB segment to SEK 5 billion in revenue by the end of 2028. The integration of ÖoB in Sweden is on track, with several pilot stores already open, and more planned for the fall.

Challenges

While the company has shown strong performance, there are challenges to consider. The acquisition of ÖoB has affected comparable numbers, making it difficult to evaluate underlying performance. Additionally, the gross margin in Sweden remains flat, indicating that the modernization journey will take time to show significant results.

Conclusion

Europris ASA's Q2 2025 results demonstrate a resilient performance, driven by strong sales growth in Norway and steady progress in Sweden. The company's strategic direction and long-term value creation potential are evident in its financial performance. However, the integration of ÖoB and the continued challenges in Sweden will require careful management.

References

[1] https://investor.europris.no/financials/financial-summary/default.aspx
[2] https://finance.yahoo.com/news/europris-asa-fra-2rg-q2-070045707.html