Q4 2024 Europris ASA Earnings Call Transcript
Key Points
- Europris ASA (LTS:0RAI) delivered a solid finish to 2024 with sales growth above the market in Norway, contributing to a 20% increase in EBIT from the previous year.
- The company saw a significant improvement in gross margin in Norway, resulting in a group EBIT increase of 12.7% from last year.
- Europris ASA's initiatives in Sweden are showing positive results, with progress on the integration plan and readiness for product upgrades in early 2025.
- The company was recognized for its strong price position and product offerings, winning several product tests during the Christmas season.
- Europris ASA's online store was awarded as the online store of the year for families and children, highlighting its competitive edge in the digital space.
- Intense price competition from grocery chains led to lower sales from groceries, impacting overall sales performance.
- Despite positive initiatives, Europris ASA has not yet seen an uplift in the customer basket size in Sweden, indicating a need for more customer acquisition.
- The gross margin in Sweden was negatively impacted by clearance sales ahead of planned category upgrades.
- The company experienced a loss of NOK41 million from OoB, impacting overall financial performance.
- Net profit was down by NOK70 million due to the loss in OoB, highlighting challenges in the Swedish market.
Good morning, everyone and welcome to Europis fourth-quarter presentation. I'm Espen Eldal, CEO of Europis and joining me today, we have CFO, Stina Byre, who will present the financial details and the (inaudible) who will manage the Q&A session at the end of the presentation. Please feel free to type in your questions as we speak and we will sum it up at the end. It's always a pleasure to see a live audience in the room and actually today we have some visitors and that is a special welcome to you guys. Good to see you.
Okay. Let's get started. In retail, the fourth quarter is the most important quarter of the year and I'm really pleased to see that we delivered a solid finish to 2024. In Norway, we have prepared well for the Christmas season and was rewarded with sales growth above the market and the growth margin improved both from last year and also the preceding quarters.
All that contributed to an EBIT increase of 20% from last year. So strong performance in Norway. In Sweden, we get more and more confirmation that our
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