The first quarter reflected strong performance in Norway and continued traction
in Sweden. The Europris concept continued to demonstrate its
relevance, with solid sales growth driven by increased traffic to
stores and sustained volume growth. The first
quarter delivered robust operational performance, and total year-on-year revenue
growth of 12.3%. An earlier timing of Easter this year is estimated to have
contributed with around 6 percentage points of the sales growth.
The gross margin development in Norway was negatively affected by product mix,
with a higher share of sales from consumables and intensified promotional
activity, partly attributable to the earlier timing of Easter this year.
In Sweden, the positive performance trends in the fourth quarter continued into
the first quarter. The turnaround programme progressed according to plan,
with a total of nine store upgrades completed during the quarter.
Financial highlights for the first quarter of 2026
· Total sales amounted
to NOK 3,300 million (2,938), representing a reported growth of 12.3% and growth
of 11.6% in constant currency
· Like-for-like sales growth amounted to 14.7% for the Europris chain and 7.7%
for the ÖoB chain in local currency
· Gross profit increased to NOK 1,302 million (1,136), with a
gross margin of 39.5% (38.7%)
· EBIT increased to NOK 71 million (loss of 37), corresponding to an EBIT
margin of 2.2% (-1.3%)
· Net profit attributable to owners of the parent company amounted
to NOK 4 million (loss of 80)
· Earnings per share improved to NOK 0.03 (-0.49)
· Cash flow from operating activities was negative at NOK 163 million
(negative at 544)
· Net debt excluding lease liabilities amounted to NOK 1,302 million (1,521)
CEO Espen Eldal comments:
"Europris continued to strengthen its core business in Norway. Low prices,
strong campaigns, and the right assortment drive traffic and volume - and we
gain market share because we stay relevant. In Sweden, we made important steps
on our value creation journey, and we remain confident in our long-term goals.
In short, Norway delivers cash flow, Sweden is a long-term value creation case,
and we are building a strong Nordic platform with discipline."
Total operating income amounted to NOK 3,300 million (2,938), representing year
-on-year growth of 12.3%. The earlier timing of Easter is estimated to have
contributed with around 6 pp of the sales growth.
Gross profit increased to NOK 1,302 million (1,136) and included unrealised
currency losses of NOK 4 million (unrealised losses of 34). The gross
margin improved by 0.8 pp to 39.5% (38.7%) and declined
by 0.2 pp when excluding the impact of unrealised currency effects.
Operating expenses increased by 5.4% to NOK 962 million (913), and the opex-to
-sales ratio was 29.1% (31.1%). EBITDA increased to NOK 340 million (224),
corresponding to an EBITDA margin of 10.3% (7.6%). EBIT improved
to NOK 71 million (loss of 37), corresponding to an EBIT margin of 2.2% (-1.3%).
Outlook
Consumer sentiment has strengthened over the past year in both Norway and
Sweden, supported by lower inflation, real wage increases and declining interest
rates. However, the continued volatile and uncertain geopolitical environment is
expected to reignite inflationary pressures. In Norway, expectations for
interest rates reductions have been revised, with rate increases now anticipated
before the summer. Although real wage growth is still projected for both
countries in 2026, consumers may nonetheless adopt a more cautious approach to
spending. Both Europris and ÖoB are strategically positioned to benefit from
price-conscious consumers seeking value for money and compelling campaigns.
Higher and more volatile energy prices are expected to adversely impact certain
cost components. Any impacts are expected to be market-wide, and potential
effects on the group's profit and loss will depend on the duration and scope of
these developments.
The group has renewed its inbound freight agreement for overseas shipments,
securing capacity for deliveries at competitive rates through next summer.
Seasonal products for the upcoming spring and summer seasons have been received,
and the group is well prepared for this important season.
In Sweden, the ÖoB turnaround programme continues according to plan. Financial
performance for 2026 and 2027 will be adversely impacted by costs related to the
store remodelling programme. The group expects gradual improvement in financial
performance from 2027 and remains confident in achieving its ambition to grow
ÖoB sales to SEK 5 billion and reach an EBIT margin of 5% by the end of 2028.
Practical details
The quarterly report, presentation materials and spreadsheet with key figures
will also be available on the website https://investor.europris.no. CEO Espen
Eldal and CFO Stina C Byre will present the group's results at 08:30 CEST at the
ABG Sundal Collier office, Ruseløkkveien 26, 8[th] floor in Oslo. The
presentation will be held in English and transferred via live webcast and will
be made available through the website at https://investor.europris.no. It will
be possible to ask questions via the web.
For further information, please contact
Espen Eldal, CEO, +47 48 29 24 24, espen.eldal@europris.no
Stina C Byre, CFO, +47 41 10 58 08, stina.byre@europris.no
Trine Engløkken, Head of IR, +47 94 05 09 37, trine.englokken@europris.no
About Europris
The group comprises Norway's leading variety retail chain, Europris, the Swedish
retailer ÖoB, and holds full or partial ownership in the e-commerce groups
Lekekassen and Strikkemekka. The Europris chain operates 289 stores in Norway
(268 directly operated and 21 franchised locations), while ÖoB manages 92
directly operated stores throughout Sweden, and Lekekassen operates two physical
stores in Norway. The group's operations are coordinated from its head office in
Fredrikstad, Norway, with logistics centres in both Norway and Sweden.
This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to section 5-12 the Norwegian Securities Trading Act. This stock exchange
announcement was published by Trine Engløkken, head of investor relations
at Europris ASA, on 23 April 2026 at 07:00 CEST.