Europris AS: Norway delivers, Sweden progresses and margin strengthen across the group in the first half of 2026

Group sales in the second quarter declined by 2.8% year-on-year, with timing of Easter estimated to have had a negative impact of around 4.5 percentage points (pp). Sales for the first six months are comparable and therefore more relevant. Group sales for the first half increased by 3.8%, and together with a higher gross margin, this resulted in EBIT growth of 20.7%.

Norway had flat sales development in the second quarter, negatively impacted by the timing of Easter of around 5.5 pp. For the first half, sales increased by 6.0%, driven by higher footfall and volume-led basket growth among price-conscious consumers. Higher volumes also led to increased distribution and handling costs.

Sweden had sales decline of 3.9% in local currency in the second quarter, including a negative timing effect from Easter estimated at around 2.5 pp, in addition to negative impact from temporary store closures related to the store remodelling programme. First half sales were up 0.7% in local currency, which included negative impact from 24 temporary store closures.

As part of ÖoB's turnaround, the campaign mix has been shifted to less of low-margin consumables to more of non-food items and seasonal products - weighing on footfall and sales short-term, but supporting gross margin and basket value. The Swedish consumers responded positively to the seasonal range that has been aligned with Europris' offering in Norway.

Financial highlights - second quarter

• Total sales amounted to NOK 3,694 million (3,802), representing a reported decrease of 2.8% and 1.1% in constant currency
• Like-for-like sales were down 0.9% for the Europris chain and 3.3% for the ÖoB chain in local currency 
• Gross profit increased to NOK 1,567 million (1,544), with a gross margin of 42.4% (40.6%)
• EBIT declined to NOK 394 million (423), corresponding to an EBIT margin of 10.7% (11.1%)
• Net profit attributable to owners of the parent company amounted to NOK 245 million (276)
• Earnings per share were NOK 1.50 (1.69)

Financial highlights - first half

• Total sales amounted to NOK 6,994 million (6,740), representing a reported growth of 3.8% and 4.4% in constant currency
• Like-for-like sales were up 5.7% for the Europris chain and 1.5% for the ÖoB chain in local currency
• Gross profit increased to NOK 2,869 million (2,681), with a gross margin of 41.0% (39.8%)
• EBIT increased to NOK 465 million (386), corresponding to an EBIT margin of 6.7% (5.7%)
• Net profit attributable to owners of the parent company amounted to NOK 249 million (196)
• Earnings per share were NOK 1.52 (1.20)
• Cash flow from operating activities was positive at NOK 427 million (negative at 40)
• Net debt excluding lease liabilities amounted to NOK 1,627 million (1,843)

Comment from CEO Espen Eldal:

"Europris continues to deliver where it matters most. Norway remains the engine of the group, driven by volume, footfall and a clear price position - exactly what we would expect in a market where consumers remain value-conscious. Growth over the first half confirms that our model is working, even as short-term effects such as Easter timing move quarterly numbers around.

In Sweden, we are executing a multi-year plan, and the second quarter shows the plan is on track. Non-food sales are up 10% and the gross margin improves, exactly the shift we said we would deliver as ÖoB moves toward the categories where we can win profitably. With 28 of 92 stores now remodelled, and close to half by Christmas, the foundation for sustained improvement is being built store by store."

Outlook

Macroeconomic conditions in Norway and Sweden remain mixed. In Norway, Norges Bank raised the policy rate by 25 basis points to 4.25% in May as core inflation remains above target, and has indicated the possibility of further rate increases during the second half of the year. Combined with continued geopolitical uncertainty and volatility in energy and commodity markets, this may weigh on consumer confidence and spending patterns. In Sweden, core inflation remains below target, and the policy rate is currently 1.75% with no immediate prospect of rate increases.

Consumers are expected to see real wage growth in both countries in 2026 but are nevertheless expected to remain price conscious with a sharp focus on value-for-money and promotional activities. Europris and ÖoB remain well positioned in this environment through their low-price concepts, broad assortments and strong promotional capabilities.

Cost visibility remains limited, particularly for energy, freight and certain input categories. Further volatility cannot be excluded, but any impact on these cost items is expected to affect the market broadly. The group continues to mitigate cost increases where possible through sourcing initiatives, pricing measures, and improved operational efficiency.

In Sweden, the ÖoB turnaround programme is progressing according to plan. The store remodelling programme is expected to continue to weigh on profitability in the near term, while supporting the longer-term earnings capacity of the chain. The group maintains its expectation of a gradual improvement in financial performance from 2027 onwards and reiterates its ambition to grow ÖoB sales to SEK 5 billion with an EBIT margin of 5% by the end of 2028.

Practicalities:

The quarterly report, presentation materials and spreadsheet with key figures will also be available on the website https://investor.europris.no. CEO Espen Eldal and CFO Stina C Byre will present the group's results at 08:30 CEST at Pareto Securities' office, Dronning Mauds gate 3, Vika in Oslo. The presentation will be held in English and transferred via live webcast and will be made available through the 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
Trine Engløkken, Head of IR, +47 94 05 09 37, trine.englokken@europris.no

About Europris:

The group comprises Norway's leading variety retail chain, Europris, the Swedish retailer ÖoB, and holds full or partial ownership in the e-commerce groups Lekekassen and Strikkemekka. The Europris chain operates 290 stores in Norway (269 directly operated and 21 franchised locations), while ÖoB manages 92 directly operated stores throughout Sweden, and Lekekassen operates two physical stores in Norway. The group's operations are coordinated from its head office in Fredrikstad, Norway, with logistics centres in both Norway and Sweden.

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 the Norwegian Securities Trading Act. This stock exchange announcement was published by Trine Engløkken, Head of IR at Europris ASA, on 9 July 2026 at 07:00 CEST.