Q2 2024 Europris ASA Earnings Call Transcript
Key Points
- Europris ASA (FRA:2RG) reported a significant increase in total sales, reaching NOK3.1 billion, a 34.6% rise from the previous year.
- The acquisition of OoB is expected to create a Nordic champion in discount variety retail, with significant synergies anticipated from joint sourcing and category harmonization.
- Europris ASA (FRA:2RG) has been recognized as one of the climate leaders in Europe by the Financial Times and Statista, highlighting its commitment to sustainability.
- The company has a solid financial position with increased cash and liquidity reserves, rising from NOK1 billion to NOK1.4 billion.
- Europris ASA (FRA:2RG) plans to invest up to NOK300 million in improving customer experience by upgrading stores and modernizing IT infrastructure, which is expected to drive future growth.
- Group EBIT decreased by NOK23 million from the previous year, with a negative EBIT of NOK16 million from OoB.
- The gross margin declined by 2.6 percentage points to 41.9%, partly due to the dilutive effect of including OoB's numbers.
- The economic climate remains challenging, affecting both businesses and consumers, leading to more price-conscious behavior.
- OoB has faced challenges such as weak profitability, liquidity strains, and underinvestment, which need to be addressed.
- The integration and transformation of OoB are expected to take time, with significant investments required before seeing the financial benefits.
Good morning and welcome to the Europris presentation of the second quarter results and highlights. The numbers are out and of course, also the integration plan [will be] and today is an important milestone for Europris. With the acquisitional OoB that was completed on the 2 May, we are on an important pathway to creating a Nordic champion within this country retail. This is an important historic date for Europris group, the biggest acquisition we've ever done, and we are moving Nordic really pleased to present today both the numbers but also the integration plan and our ambitions for the new group.
Joining me on stage today is, as always, CFO, Stina Byre will present the financial details. And today we also have a special guest -- in Vice President, Strategic Projects, Andre Sjasaet; who will present the details of the integration plan with Byer. At the end of the presentation, we will have a Q&A session, which will be managed by Europris (technical difficulty).
And we will start with the questions from the live audience before we
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