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Introduction & Market Context
Europris ASA (OB:EPR) presented its second quarter 2025 financial results on July 10, showing a significant recovery from a challenging first quarter. The company’s stock closed at NOK 87.9 on July 9, up 1.03% ahead of the presentation.
The Norwegian discount retailer, which celebrated its 10-year anniversary on the Oslo Stock Exchange with a total shareholder return of 218% (12.3% annually), positioned itself as "A Nordic retail champion in the making" with approximately NOK 14 billion in annual sales and 381 stores across its network.
Quarterly Performance Highlights
Europris reported group sales of NOK 3.8 billion for Q2 2025, representing a 22.3% increase compared to the same period last year. This growth was partly attributed to an additional month of ÖoB contribution and positive Easter timing effects.
The group achieved an EBIT of NOK 423 million, up from NOK 339 million in Q2 2024, while net profit to parent reached NOK 276 million compared to NOK 266 million last year.
As shown in the following financial summary:
However, the company’s gross margin declined by 1.3 percentage points to 40.6%, primarily due to the dilutive impact from ÖoB and product mix, though this was partially offset by an unrealized currency gain of NOK 10 million.
For the first half of 2025, Europris reported total sales of NOK 6.8 billion, a 31.3% increase year-over-year, but EBIT declined to NOK 386 million from NOK 445 million in the first half of 2024.
Segment Performance
The Norway segment delivered particularly strong results, with Q2 sales increasing by 11.7% and like-for-like sales growing by 11.8%. EBIT for the segment reached NOK 457 million, representing an impressive 28.9% growth compared to Q2 2024.
As illustrated in the Norway segment performance chart:
CEO Espen Eldal highlighted several factors contributing to Norway’s success, including higher footfall to stores, strong execution of seasonal campaigns, a successful upgrade of the home & interior category, operational improvements, enhanced service levels, and improved efficiency in the value chain.
In contrast, the Sweden segment (ÖoB) continued to face challenges despite showing some signs of improvement. Q2 sales reached NOK 1.1 billion with like-for-like growth of 4.7% in local currency, but the segment still recorded an EBIT loss of NOK 34 million.
The following chart shows Sweden’s financial performance:
For the first half of 2025, the Sweden segment reported sales of NOK 2.0 billion but suffered an EBIT loss of NOK 149 million, reflecting the ongoing challenges in turning around the acquired business.
ÖoB Integration Progress
A key focus of the presentation was the progress of ÖoB integration, with Europris highlighting several milestones including three category upgrades (kitchen, home & interior, and DIY), conceptual and visual improvements, and the gradual introduction of Europris’ non-food product range.
The most significant development was the opening of the first fully remodeled ÖoB store in Uddevalla on June 18, 2025, featuring a comprehensive conceptual upgrade aligned with Europris’ store concept.
As shown in the images of the remodeled store:
While management noted it was too early to draw definitive conclusions, initial feedback has been positive with higher sales from increased footfall and basket value, along with improved margins from a more favorable product mix. Three additional test stores will be remodeled in 2025 before accelerating the rollout in 2026 and 2027.
Europris maintained its ambitious target of growing ÖoB revenues to SEK 5 billion by 2028 with a 5% EBIT margin, focusing on category harmonization, joint sourcing, improved customer experience, and strengthened execution across the value chain.
Strategic Initiatives & Outlook
Looking ahead, Europris expressed confidence in its market position and growth strategy. The company highlighted its outperformance of the Norwegian market through May (with June figures not yet available) and emphasized the strength of its concept in the current economic environment.
For the Norway segment, long-term ambitions include continuing to deliver like-for-like growth above the market, opening a net average of five new stores per year, and increasing EBITDA margin while maintaining a dividend policy of 50-60% of net profit.
The company also announced that its science-based targets had been approved by the Science Based Targets initiative (SBTi), including a commitment to achieve net-zero greenhouse gas emissions across the value chain by 2050.
Despite the positive Q2 results, investors should note the contrast with the challenging first quarter, when Europris reported a negative EBIT of NOK 37 million and a net loss of SEK 80 million. The significant improvement in Q2 suggests a potential turnaround, but the continued losses in the Swedish segment remain a concern.
As Europris celebrates its decade on the Oslo Stock Exchange, the company appears focused on leveraging its strong Norwegian operations while working to replicate that success in the Swedish market through the ongoing integration and transformation of ÖoB.
Full presentation:
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