The chain with 258 stores delivered weaker than expected in the first quarter.
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- The turnover in the first three months of the year came to NOK 2.026 billion. In the same period last year, turnover was 1.932 billion.
- Profit before tax was NOK 67.7 million. That is a drop from 93.5 million last year.
- Analysts had previously expected an average of NOK 2.029 billion in revenue and profit before tax of NOK 101.8 million, according to Bloomberg.
The weaker profit is due to higher operating costs, the company writes.
In previous years, Europris has profited well from securing electricity prices. This year, the hedge is expected to be closer to the market price and significantly above the previous year.
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Europris still expects moderate use of money by customers going forward, as a result of the situation with high interest rates and inflation.
– The difficult market conditions represent an opportunity for Europris, as a well-known low-price concept, the company writes in the quarterly report.
The company does not expect any major problems for shipping, despite the unrest in the Red Sea.
– Europris has experienced no difficulties in getting goods and is ready for the important spring and summer season.
The company writes that they will keep a close eye on operating costs going forward. They expect a cost increase of 10 per cent this year, partly as a result of inflation effects from last year being pushed forward to this year.
Buys the rest of the Swedish company
On Thursday morning, Europris also announced that it is buying the remaining 80 percent of the Swedish company Runsvengruppen, which owns the low-price chain Öob with 93 stores in Sweden.
The final price is NOK 200.5 million, writes Europris.
– The board and management of Europris are convinced that a growth journey with Nordic expansion will create significant shareholder value in the coming years, the report states.
In 2024, the ownership share of 20 per cent resulted in a loss of NOK 11 million.
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Up 27 percent on the stock exchange
The turnover in the first quarter is significantly lower than the last quarter of last year, which is completely normal. The period between Black Friday and Christmas is the trade stand’s peak season. Last year, however, Europris missed something.
At the last quarter’s presentation, the company admitted to having ordered too few popular Christmas items with good margins.
Following the report, the share price fell around NOK 10 from the peak of NOK 82, but in recent weeks the trend has been positive again.
On Wednesday, the share closed at NOK 79, up 27 per cent in the last six months.
