Europris Asa · OSL:EPR
Europris Asa — Q3 2024 Earnings Presentation
27 slides from Europris Asa's earnings presentation, Oct 31, 2024
Slide 1: Q3 2024 presentation
Q3 2024 presentation 31 October 2024 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 ~13.8 ~1.1 NOK billion NOK billion 94 Customer club Annual footfall 284 ~4.0 ~57 million members million transactions 3 Figures are based on approximate and pro-forma figures l
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 ~11.7bn* 67% of Lekekassen Opened Shanghai Listing on sourcing Oslo Børs office (JV with Acquired Tokmanni) by Nordic Capital Acquired by IK Investment Partners Foun
Slide 5: Financial highlights - third quarter
Financial highlights - third quarter • Group sales of NOK 3.2bn, up 50.4% • Organic growth of 4.4% • Gross margin of 39.7%, down 5.6%-p • Organic decline of 1.6%-p, and down 1.3%-p excluding unrealised effects from currency hedging • Opex-to-sales ratio of 26.5%, on a par with last year both reporte
Slide 6: Satisfactory quarter in a challenging market
Satisfactory quarter in a challenging market • Our campaign-driven low-price concept Third quarter year-on- First nine months year- remains relevant year sales growth (%) on-year sales growth (%) • Sales growth mainly driven by campaigns and consumables 3,8 3,5 • Many consumers remain cautious and h
Slide 7: High ambitions in Sweden: Grow ÖoB revenues by SEK 1bn by 28 with an EBIT margin of 5%
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 7
Slide 8: ÖoB integration process progressing to plan
ÖoB integration process progressing to plan • Two organisations in good spirits – good collaboration and solid contributions from employees in both Europris and ÖoB • Change of Country Manager in Sweden, with André Sjåsæt taking charge • Closed down ÖoB’s sourcing offices in China, consolidating ope
Slide 9: Implementing “the Europris’ way of working”
Implementing “the Europris’ way of working” • Implementing same stringent management follow-up routines as in Europris • Regional manager from Europris temporarily relocating to Sweden • Implementing Europris’ campaign principles and methodology • Adjusting frequency and structure for the printed di
Slide 10: Testing Europris’ visual profile in selected stores
Testing Europris’ visual profile in selected stores 10
Slide 11: Continued recognition for our climate efforts
Continued recognition for our climate efforts • Top score on PwC’s climate index for 2024 • Among the 18 of the 100 largest companies in Norway to receive top rating as a climate leader • Several key initiatives collectively defining climate leadership: • Established climate targets aligning with th
Slide 12: Financials
Financials CFO Stina C Byre 12
Slide 13: Group financials – third quarter highlights
Group financials – third quarter highlights Key figures group, third quarter 2024 Growth of 50.4%, impacted by acquisition of ÖoB Sales NOK 3.2bn Organic growth of 4.4% Down 5.6%-p, impacted by lower margin level in ÖoB Gross margin 39.7% Organic decline of 1.6%-p, or down 1.3%-p excluding unrealise
Slide 14: Group financials – first nine months highlights
Group financials – first nine months highlights Key figures group, first nine months 2024 Growth of 30.9%, impacted by acquisition of ÖoB Sales NOK 8.4bn Organic growth of 4.1% Down 3.2%-p, impacted by lower margin level in ÖoB Gross margin 41.2% Organic decline of 0.5%-p Opex-to-sales 26.0% Up ~1.0
Slide 15: Group – cash, debt and liquidity
Group – cash, debt and liquidity Q3 Q3 YTD YTD FY First nine months Cash flow, NOK million 2024 2023 2024 2023 2023 Cash from operating activities 157 526 365 734 1,769 • Cash from operating activities of NOK 365m (734m) - of which change in net working capital (211) 163 (508) (104) 281 • More negat
Slide 16: Segment Norway – third quarter
Segment Norway – third quarter 2023 Highlights Norway Key figures Norway, third quarter 2024 • Sales of NOK 2.2bn, up 4.4% 2,2 2,2 • Gross margin decline of 1.6%-p, or down 1.3%-p excluding unrealised currency effects, stable opex-to-sales and EBIT decline of 9.3% • LFL growth of 2.9% for the Europr
Slide 17: Segment Sweden – third quarter
Segment Sweden – third quarter 2023 Highlights Sweden Key figures Sweden, third quarter 2024 • Sales of NOK 1bn with gross margin of 30.7% and an 1,0 EBIT-loss of NOK 45m in the third quarter • Stable footfall and LFL sales (local currency SEK) • Growth in campaign sales na na • Higher sales of cons
Slide 18: Outlook
Outlook Europris
Slide 19: Ready for the important upcoming fourth quarter
Ready for the important upcoming fourth quarter • Long period with high inflation and higher interest rates have led to price consciousness and cautious spending • Campaigns and consumables drive sales growth but puts pressure on the gross margin • Improving outlook for consumer sentiment – although
Slide 20: Q&A
Q&A Next event: Q4 presentation 29 January 2025
Slide 21: Appendix
Appendix
Slide 22: Content
Content Long-term financial and operational ambitions Sales days and store projects Analytical information Alternative Performance Measures (APM’s) 22
Slide 23: 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 24: 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) • 2023 Q1 Q2 Q3 Q4 Total New stores 2 2 1 2 7 Store closures - - 1 - 1 Relocations / 3 2
Slide 25: Sales days – segment Sweden
Sales days – 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 25
Slide 26: 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 27: 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