Europris

Earnings Release • Feb 2, 2023

Strong sales mark the end to another good year

Strong sales mark the end to another good year

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.