The case will be updated from the press conference at 08.30.
VIKA (Nettavisen): Europris reports on Thursday morning revenues in the fourth quarter of NOK 3,034 million and an operating profit of NOK 604 million. Before tax, the company was left with 561 million. The turnover increase is 6.8 per cent from the fourth quarter of 2021, but the result before tax is somewhat down.
– The positive trend we saw towards the end of the third quarter continued, and we experienced a strong sales development in the fourth quarter, says Europris CEO Espen Eldal in a stock exchange announcement on Thursday morning.
– Our concept appeals to many customers who are experiencing more challenging times in the household economy, he continues. Europris has had a growth of 30 per cent in the past three years, compared to 17 per cent in total for retail.
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Marginpress
The turnover is somewhat higher than the analysts’ expectations, but the result slightly lower. Europris is therefore experiencing pressure on margins. Gross profit margin (sales revenue minus cost of goods sold) is down 4.5 percentage points in the period, but still at a high 45.5 per cent.
After nine months of operation, Europris had an operating profit of NOK 836 million and a profit before tax of NOK 604 million. For the whole of 2022, Europris was left with a profit before tax of NOK 1,337 million, compared to NOK 1,417 million in 2021. The CEO is nevertheless satisfied.
– 2022 was not an exceptional year in terms of growth, Eldal said at a press conference.
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Customers choose low prices
Europris believes they have to fight hard for their share of Norwegians’ wallets. But the market conditions also provide opportunities for relevant companies that give customers value for money.
The board of Europris proposes an ordinary dividend of NOK 2.75 per share, and an additional dividend of NOK one per share.
Nettavisen wrote after the half-year figures for Europris last year that customers seem to choose the low-price chains in a year with poorer purchasing power. Since then, we have had several interest rate increases, and price inflation has become higher.
As the graph below shows, the Europris share has had a real roller-coaster ride since the start of 2022. There was a sharp decline towards the summer of last year, but then there has been a nice rise, apart from a small decline now lately.
The market value of Europris on Wednesday evening was NOK 11 billion. The largest shareholder in Europris is Folketrygdfondet with 12 per cent, otherwise there is a very dispersed ownership.
