Europris

Earnings Release • Apr 25, 2019

Growing number of customers drove strong first-quarter sales growth

Growing number of customers drove strong first-quarter sales growth

Highlights for the first quarter of 2019

·  Sales negatively affected by around five per cent (NOK 60 million) because

of the timing of Easter

·  Figures for 2018 and 2019 first became comparable in the fourth week of

April, and like-for-like sales growth driven by the number of Europris customers

was mid-single-digit

·  Group revenue for the quarter was NOK 1,237 million (NOK 1,199 million)

·  Stable gross margin at 41.4 per cent (41.2 per cent)

·  Additional Opex cost of NOK 11 million

·  Adjusted net loss of NOK 24 million (profit of NOK 9 million)

·  Positive development of the store network

·  New warehouse on schedule - first operations to start during May

Europris maintained the strong performance observed at the end of 2018 during

the first quarter of 2019. High sales activity driven by increased customer

traffic resulted in another quarter with continued revenue growth despite a soft

retail market and the negative Easter effect. The timing of Easter distorted the

comparability of the figures. After adjusting for this, Europris delivered like

-for-like sales growth in the mid-single-digit range during the first quarter.

"We are pleased to see a continuation of the positive development experienced

since the end of 2018," comments CEO Pål Wibe in Europris. "In a quarter without

any particular seasons, growth is driven by customer traffic, signalling demand

for the Europris concept year-round in an otherwise challenging retail

environment."

"We're also pleased to observe that the important warehouse project is on

schedule."

The gross margin for the first quarter was stable compared with the same period

of 2018, but negatively affected by a reversal of last year's increase in the

sugar tax. Opex was affected by increased costs related to a high fill rate at

the central warehouse, which resulted in additional costs of NOK 11 million.

During the quarter, Europris opened a new City store concept at Gunerius in

Oslo. This concept provides a more streamlined product range, with a smaller

sales area and better overview for a faster shopping experience. The first City

store has got off to a good start, with sales above expectations.

Europris currently has a pipeline of 12 additional stores for 2019 and beyond.

Webcast today, Thursday 25 April at 08:30 CEST: CEO Pål Wibe and CFO Espen Eldal

will host a presentation. Europris invites investors, analysts and media to

attend.

Materials: The first-quarter report and presentation will also be made available

on www.europris.no/corporate (http://www.europris.no/corporate/investor) and

www.newsweb.no. In addition, a recorded version of the presentation will be made

available on

www.europris.no/corporate (http://www.europris.no/corporate/investor) about two

hours after the broadcast has concluded.

For questions or further information, please contact:

CEO Pål Wibe, tel: +47 99 11 98 91, email: paal.wibe@europris.no

CFO Espen Eldal, tel: +47 48 29 24 24, email: espen.eldal@europris.no

About Europris:

Europris is Norway's largest discount variety retailer by sales. The company

offers its customers a broad range of quality own brands and branded

merchandise. Its merchandise is sold through the Europris chain, which consists

of a network of 261 stores throughout Norway. Of these, 226 are directly

operated by the company and 35 operate as franchise stores. The company's

headquarters are located in Fredrikstad, Norway.

This information is subject of the disclosure requirements pursuant to section 5

-12 of the Norwegian Securities Trading Act.