Europris

Earnings Release • Oct 30, 2020

Solid growth and operational performance

Solid growth and operational performance

Highlights for the third quarter of 2020

· Group revenue increased by 28.5 per cent to NOK 1,897 million (NOK 1,477

million)

· 26.5 per cent like-for-like growth

· Stable gross margin of 42.8 per cent despite shift towards groceries (42.6

per cent)

· Opex-to-sales ratio decreased to 22.4 per cent (26.5 per cent)

· Adjusted EBITDA rose by 53 per cent to NOK 402 million

· Adjusted net profit increased by 115 per cent to NOK 191 million (NOK 88

million)

· Well prepared for the important Christmas season - solid start to the fourth

quarter

· Stina Charlene Byre appointed CFO - takes up the position on 1 April 2021 at

the latest

CEO Espen Eldal comments: "Europris delivered another strong quarter and I would

once again like to thank all employees for their remarkable efforts during these

extraordinary times. For the year to date, we have significantly outperformed

the market and cemented our position as Norway's leading discount variety

retailer. This is the result of solid merchandising in all parts of our value

chain."

Europris has experienced strong sales growth driven by changed consumer

behaviour as a result of strict national infection control measures and solid

merchandising.

Chain sales increased by 27.2 per cent (26.5 per cent like-for-like sales

growth). This was once again significantly higher than the market, which grew by

12.2 per cent according to Kvarud Analyse. Sales growth was driven by the many

people who worked from home and the restrictions on travelling abroad which lead

to increasing domestic consumption. While it is hard to measure, solid

merchandising has probably been another key factor in the strong sales growth

during the quarter. Europris has shown flexibility in developing its concept in

an extraordinary period, while the organisation has adapted well in order to

provide customers with a safe and good shopping experience.

Gross margin remained stable during the quarter, despite a shift towards

groceries with generally lower margins.

Operating expenditure excluding non-recurring items was NOK 425 million in the

third quarter (NOK 392 million), a rise of 8.7 per cent. Europris also

experienced improved scalability and efficiency as the Opex-to-sales ratio

decreased to 22.4 per cent (26.5 per cent).

Adjusted EBITDA in the third quarter of 2020 was NOK 402 million (NOK 262

million) - a rise of NOK 140 million or 53 per cent.

Adjusted net profit was NOK 191 million (NOK 88 million) for the third quarter.

Europris opened one new store in the third quarter. It relocated one store

during the quarter and another had its sales area reduced. The board has

approved an additional eight stores for 2020 and beyond, including two city

concept stores in Oslo and one in Bergen.

At 30 September, Europris was in a strong financial position with cash and

available credits of NOK 1,430 million (NOK 463 million).

Before the close of the quarter, Europris also announced that Stina Charlene

Byre had been appointed as its CFO.

Webcast at 08.30 CET today, Friday 30 October. CEO Espen Eldal will host the

presentation. Europris invites investors, analysts and media to join the

presentation via webcast. It will be possible to ask questions via the web.

Material: The third 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  ww.europris.no/corporate

(http://www.europris.no/corporate/investor) approximately two hours after the

broadcast has concluded.

For questions or further information, please contact:

Espen Eldal, CEO, +47 48 29 24 24, espen.eldal@europris.no

Trine Engløkken, IR, +47 940 50 937, trine.englokken@europris.no

About Europris:

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

offers its customers a broad range of quality own brands and brand-name

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

of a network of 265 stores throughout Norway. Of these, 236 are directly owned

by the group and 29 operate as franchise stores. The group's headquarters are at

Fredrikstad, Norway.

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

-12 of the Norwegian Securities Trading Act.