Strong sales mark the end to another good year

02 Feb 2023 07:00 CET

Highly satisfactory performance in a tough retail market for Europris in the
fourth quarter

· Total sales of NOK 3,034 million (NOK 2,841 million), a 6.8 per cent
increase
· Sales growth of 4.8 per cent excluding structural growth from acquisitions
· Like-for-like sales growth of 3.3 per cent for the Europris chain

· Gross margin of 45.5 per cent (50 per cent), affected by higher costs for
inbound freight
· Opex-to-sales ratio of 20.4 per cent (20.9 per cent)
· EBITDA of NOK 760 million (NOK 826 million), an eight per cent decline from
the record fourth quarter of 2021
· Solid profitability, with net profit attributable to the parent company of
NOK 422 million (NOK 489 million)
· Strong financial position, with cash and liquidity reserves of NOK 1,897
million (NOK 1,981 million)
· Board of directors proposes a total dividend per share of NOK 3.75 (NOK
4.00)
· NOK 2.75 (NOK 2.50) in ordinary dividend and an additional dividend of NOK
1.00 to reflect the strong performance and solid financial position after a
period still positively affected by Covid-19

 "The positive trend we saw in the latter part of the third quarter continued,
and we saw a strong sales performance through the final quarter of the year,"
comments CEO Espen Eldal. "Our concept appeals to the many customers facing more
challenging household finances, with low prices, attractive campaigns, and a
broad and relevant product range. Our sharper focus on everyday consumables is
paying off in the current market."

Group sales for the fourth quarter came to NOK 3,034 million, up by 6.8 per cent
from the same period of 2021. Sales rose by 4.8 per cent excluding structural
growth, and like-for-like sales for the Europris chain increased by 3.3 per
cent. Sales were strongest for low-priced consumables, with customers holding
back on investment purchases.

Gross profit for the fourth quarter was NOK 1,379 million (NOK 1,421 million),
with the gross margin declining to 45.5 per cent (50 per cent). The drop was
expected and reflected higher costs for inbound freight, unrealised currency
losses on hedging contracts, and a larger share of campaign sales.

Operating expenditure (Opex) was NOK 619 million (NOK 595 million) in the fourth
quarter, corresponding to 20.4 per cent of sales (20.9 per cent). EBITDA was NOK
760 million (NOK 826 million).

Net profit for the fourth quarter amounted to NOK 440 million (NOK 510 million),
with NOK 422 million (NOK 489 million) attributable to owners of the parent
company.

Cash and liquidity reserves for the group at 31 December 2022 came to NOK 1,897
million (NOK 1,981 million).

The board of directors will propose total dividends of NOK 3.75 per share for
2022 to the general meeting, comprising ordinary dividend of NOK 2.75 per share
and an additional payout of NOK 1.00 per share to reflect the solid financial
performance and position after a period still positively affected by Covid-19.
The total proposed dividend amounts to NOK 604 million excluding treasury
shares, and represents a pay-out ratio of 59.1 per cent of the majority's share
of the profit.

Outlook

Household finances in Norway are becoming more challenging, with rising interest
rates and higher prices for food, energy and other necessities. Although private
consumption held up reasonably well during 2022, most economists are being
cautious in their expectations for consumer spending in the time to come.

Although Europris expects to have to fight hard for its share of the wallet,
these market conditions also represent opportunities for companies able to stay
relevant for consumers and offer good value for money. The Europris group is
well positioned, with a well-recognised low-price concept, strong campaigns, and
a broad and relevant product offering. Over time, it has outperformed the retail
market. The board is confident that Europris will continue to play an
increasingly important role and to take market share.

Practical details

The quarterly report, presentation materials and spreadsheet with key figures
will also be available on the group's website at https://investor.europris.no.

CEO Espen Eldal and CFO Stina C Byre will present the group's results at 08.30
CET today at Pareto Securities, Dronning Mauds gate 3, Oslo. The presentation
will be held in English and transferred via live webcast, and will be made
available through the group's 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

About Europris:

Europris is Norway's largest discount variety retailer by sales. The group
offers its customers a broad range of quality owned brands and brand name
merchandise. Its merchandise is sold through the Europris chain, comprising a
network of 276 stores throughout Norway of which 249 are directly owned by the
group and 27 operate as franchises. In addition, Europris has a 67 per cent
stake in the Lekekassen, Lunehjem, Strikkemekka and Designhandel e-commerce
stores. The group's head office is located in Fredrikstad, Norway.

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 of the Norwegian Securities Trading Act.

This stock exchange announcement was published by Trine Engløkken, head of
investor relations at Europris ASA, on 2 February 2023 at 07:00 CET.

More information:
Access the news on Oslo Bors NewsWeb site

581191_Europris_ASA_Q4_2022_report.pdf
581191_Europris_ASA_Q4_2022_presentation.pdf