Quarterly Results

Latest Quarterly report

Fourth Quarter 2018

Highlights for the fourth quarter of 2018

  • Group revenues increased by 12.9 per cent to NOK 1,839 million (NOK 1,629 million)
  • Like-for-like sales growth of seven per cent, above the market benchmark of 0.4 per cent
  • Adjusted net profit increased 14.6 per cent to NOK 224 million (NOK 195 million)
  • The board of directors proposes an ordinary dividend of NOK 1.85 per share for 2018 (NOK 1.70)

Highlights for the full year 2018

  • 7.3 per cent growth in group revenues to NOK 5,817 million (NOK 5,423 million)
  • 2.2 per cent growth on a like-for-like basis, above the market growth of 0.8 per cent
  • Adjusted net profit increased 10.1 per cent to NOK 429 million (NOK 390 million)
  • Eight new stores net and eight franchise takeovers
  • Acquisition of 20 per cent in Runsvengruppen AB (ÖoB) and launch of purchasing partnership

Sales growth in the quarter was driven by well-prepared sales campaigns for “Black Friday” and the Christmas season. It was also fuelled by improved central control of volumes and spacing in the stores, which resulted in high and stable growth throughout the quarter.

The gross margin in the fourth quarter was affected by a deliberate increase in the campaign share of total sales and ended at 43.4 per cent (44 per cent). Adjusted EBITDA was NOK 304 million for the fourth quarter, up by 6.4 per cent from NOK 285 million in the same period of last year. Adjusted net profit for the fourth quarter amounted to NOK 224 million.

“We delivered solid growth in the fourth quarter,” comments Pål Wibe, CEO of Europris. “I am particularly pleased with the execution by our people of the different seasons and campaigns in the fourth quarter. Once again, the team shows that the Europris culture ‘eats strategy for breakfast’ as our professionals show an invaluable commitment.”

“As we reported during our capital markets day in December, discount variety retailing is thriving and we continue to see this sector outpacing the growth of the total retail market. We will strengthen our price and cost position, continually improve customer experience and drive customer growth. The bar has been raised, and we are on a quest to be the best. We are the undisputed market leader in Norwegian discount variety retail, but our long-term ambition is to be best in Europe.”

Europris continued its topline expansion in 2018, increasing group revenue by 7.3 per cent to NOK 5,817 million (NOK 5,423 million) on the back of eight new store openings net and a like-for-like performance of 2.2 per cent, well above market growth.

The board of directors of Europris ASA has decided to propose an ordinary dividend for 2018 of NOK 1.85 per share to the annual general meeting.

Webcast today, Thursday 31 January, at 08.30 CET: CEO Pål Wibe and CFO Espen Eldal will host a presentation. Europris invites investors, analysts and media to attend or view.

Material: the fourth quarter report and presentation will also be made available at www.europris.no/corporate and www.newsweb.no. A recorded version of the presentation will be posted to www.europris.no/corporate about two hours after the webcast has concluded.

For questions or further information, please contact:
Pål Wibe, CEO, Europris ASA, tel: +47 99 11 98 91, email: paal.wibe@europris.no
Espen Eldal, CFO, Europris ASA, tel: +47 48 29 24 24, email: espen.eldal@europris.no

Europris in brief

Europris is Norway's largest discount variety retailer by sales. The company offers its customers a broad range of quality own brands and brand name merchandise. Its merchandise is sold through the Europris chain, which comprises a network of 258 stores throughout Norway. Of these, 221 stores are directly operated by the company and 37 operate as franchise stores. The company's headquarters are located in Fredrikstad, Norway.

This information is subject of the disclosure requirements specified in section 5-12 of the Norwegian Securities Trading Act.

Quarterly Financials