Europris Asa · OSL:EPR
Europris Asa — Q4 2024 Earnings Presentation
29 slides from Europris Asa's earnings presentation, Jan 29, 2025
Slide 1: Q4 2024 presentation
Q4 2024 presentation 29 January 2025 CEO Espen Eldal CFO Stina Byre
Slide 2: Disclaimer
Disclaimer This presentation has been produced by Europris ASA (the "Company") exclusively for information purposes. This Presentation has not been approved, reviewed or registered with any public authority or stock exchange. Further to the aforementioned, this presentation is the result of an effor
Slide 3: The Europris group
The Europris group A Nordic retail champion in the making… …with strong concepts across 378 stores Annual sales Annual EBIT ~NOK 14bn ~NOK 1.1bn 93 Customer club Annual footfall 285 ~4 million ~58 million members transactions 3 Figures are based on approximate and pro-forma figures last 12 months at
Slide 4: Our growth story
Acquired remaining Our growth story Acquired 33% of Lekekassen Acquired 67% of Strikkemekka Acquired remaining 80% of ÖoB Sales of ~NOK 13bn* 67% of Lekekassen Opened Shanghai Listing on sourcing Oslo Børs office (JV with Acquired Tokmanni) by Nordic Capital Acquired by IK Investment Partners Founde
Slide 5: Financial highlights - fourth quarter
Financial highlights - fourth quarter • Group sales of NOK 4.4bn, up 42.5% • Organic growth of 4.9% • Gross margin of 42.5%, down 1.3%-p • Organic increase of 2.2%-p, or up 1.4%-p excluding unrealised effects from currency hedging • Opex-to-sales ratio of 22.3%, up 2.0%-p • Organic decline in opex-t
Slide 6: Strong finish to the year in Norway, with growth above the market
Strong finish to the year in Norway, with growth above the market • The Europris chain outperformed the retail market in Fourth quarter, year-on- Full year, year-on-year Q4 year sales growth (%) sales growth (%) • Well-prepared and solid execution of the seasons – balancing sales and margins 5,2 5,0
Slide 7: Strong price and product offering recognised in the market
Strong price and product offering recognised in the market • Europris clear price winner in Nettavisen’s price test comparing prices with six other variety retail discounters • Receiving good reviews for its high-quality private label seasonal products • “Hafjell” outdoor string lights “best in test
Slide 8: ÖoB integration process progressing to plan
ÖoB integration process progressing to plan • Two organisations in good spirits –collaborating well with solid contributions from employees in both Europris and ÖoB • Working towards a holistic transformation of ÖoB and a more robust governance model • Taken actions to improve the running business a
Slide 9: Good progress on several strategic initiatives
Good progress on several strategic initiatives • Clearance sale to prepare for upcoming category upgrades • Applying Europris’ campaign methodology all the way from planning to in-store execution • Implemented Europris’ visual profile in 65 ÖoB stores • Successfully launched carpets and rugs as a ne
Slide 10: High ambitions in Sweden: Grow ÖoB revenues by SEK 1bn by 28
High ambitions in Sweden: Grow ÖoB revenues by SEK 1bn by 2028 with an EBIT margin of 5% Category harmonisation and joint sourcing +1bn Improve customer experience SEK Strengthen execution across the value chain 10
Slide 11: Financials
Financials CFO Stina C Byre 11
Slide 12: Group financials – fourth quarter highlights
Group financials – fourth quarter highlights Key figures group, fourth quarter 2024 • +42.5%, impacted by acquisition of ÖoB Sales NOK 4.4bn • Organic growth of 4.9% • -1.3%-p, impacted by the lower margin level in ÖoB and clearance sale Gross margin 42.5% • Organic increase of 2.2%-p, or +1.4%-p ex
Slide 13: Group financials – full year highlights
Group financials – full year highlights Key figures group, full year 2024 • +34.7%, impacted by inclusion of ÖoB Sales NOK 12.75bn • Organic growth of 4.3% • -2.6%-p, impacted by the lower margin level in ÖoB Gross margin 41.7% • Organic increase of 0.4%-p, or +0.1%-p excluding unrealised currency •
Slide 14: Group – cash, debt and liquidity
Group – cash, debt and liquidity Full year Q4 Q4 FY FY Group cash flow, NOK million 2024 2023 2024 2023 • Cash from operating activities of NOK 1,496m (1,769) Cash from operating activities 1,131 1,035 1,496 1,769 - of which change in net working capital 297 385 (211) 281 • Higher net working capita
Slide 15: Segment Norway – fourth quarter
Segment Norway – fourth quarter 2023 Highlights Norway Key figures Norway, fourth quarter 2024 3,1 3,2 • Sales of NOK 3.2bn, up 4.9% • Gross margin +1.4%-p excluding unrealised currency effects, opex-to-sales -0.3%-p, and EBIT +20.2% 665 554 • LFL sales +4.8% for the Europris chain • Higher footfall
Slide 16: Segment Norway – full year
Segment Norway – full year 2023 Highlights Norway Key figures Norway, full year 2024 • Sales of NOK 9.9bn, up 4.3% 9,5 9,9 • Gross margin +0.1%-p excl. unrealised currency, opex- to-sales +0.6%-p and EBIT +3.4% 1 295 1 339 • LFL sales +3.5% for the Europris chain • Higher footfall • Campaigns import
Slide 17: Segment Sweden – fourth quarter
Segment Sweden – fourth quarter 2023 Highlights Sweden Key figures Sweden, fourth quarter 2024 • Sales of NOK 1.2bn, with gross margin of 32.6% and 1,2 an EBIT-loss of NOK 41m • Clearance sale in preparation of category upgrades negatively impacted the gross margin na na • Footfall on a par with las
Slide 18: Segment Sweden – May to December
Segment Sweden – May to December 2023 Highlights Sweden Key figures Sweden, May-Dec 2024 • Sales of NOK 2.9bn, with gross margin of 31.4% and 2,9 an EBIT-loss of NOK 102m for the period May-Dec na • Managed to stabilise footfall after decline in the first half of the year – key to expand and attract
Slide 19: Dividend and outlook
Dividend and outlook Europris
Slide 20: Continued growth in dividend
Continued growth in dividend Dividend per share (DPS), NOK Ordinary dividend • The board of directors proposes ordinary dividend per Additional dividend following strong financial performance affected by Covid-19 share of NOK 3.50 for 2024 (3.25), up 7.7% • Total dividend amounts to NOK 573m, exclud
Slide 21: Improving outlook for consumer sentiment
Improving outlook for consumer sentiment • Improved outlook in both Norway and Sweden after years of weak consumer confidence • Europris chain outperforming general retail growth, with gradually improving financial performance through 2024 • Turnaround of ÖoB progressing to plan, with upgrades of se
Slide 22: Q&A
Q&A Next event: Q1 presentation 10 April 2025
Slide 23: Appendix
Appendix
Slide 24: Content
Content Long-term financial and operational ambitions Sales days and store projects Analytical information Alternative Performance Measures (APM’s) 24
Slide 25: Long-term financial and operational ambitions - segment Norway
Long-term financial and operational ambitions - segment Norway Growth Continue to deliver like-for-like growth above the market over time Target to open a net average of five new stores per year, depending on availability of locations which Number of new stores meet strict return requirements, and t
Slide 26: Sales days and store projects – segment Norway
Sales days and store projects – segment Norway Number of sales days Year Q1 Q2 Q3 Q4 Total 2023 77 71 79 79 306 2024 75 73 79 80 307 2025 76 71 79 81 307 Number of store projects (franchise projects in brackets) • 2024 Q1 Q2 Q3 Q4 Total New stores - - - 1 1 Store closures - - - - - Relocations / 3 6
Slide 27: Sales days and store projects – segment Sweden
Sales days and store projects – segment Sweden Number of sales days Year Q1 Q2 Q3 Q4 Total 2023 89 91 92 91 363 2024 90 91 92 91 364 2025 89 91 92 91 363 Number of store projects • 2024 Q1 Q2 Q3 Q4 Total New stores - - - - - Store closures - - - 1 1 Relocations / - - - - - expansions Modernisations
Slide 28: Analytical information – segment Norway
Analytical information1 – segment Norway Seasonality • As a rule-of-thumb, the Easter impact is approximately NOK 65-80 million in revenue and NOK 13-16 million in EBITDA • Europris stores: as a rule-of-thumb, Opex in quarter one year earlier + inflation + NOK 1.6-1.7 million Quarterly Opex per extr
Slide 29: Alternative performance measures (APMs)
Alternative performance measures (APMs) APMs are used by Europris for annual and periodic financial reporting in order to provide a better understanding of the group’s financial performance. APMs are considered as well- know and frequently used by users of the financial statements and are also used