This article first appeared on GuruFocus .
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Total Sales (Q2):NOK 3.7 billion, a reduction of 2.8% and down 1.1% in constant currency.
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Sales Growth (H1):3.8% overall and 4.4% in constant currency.
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Like-for-Like Sales Growth (Norway):5.7%.
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Like-for-Like Sales Growth (Sweden):1.5% in local currency.
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Gross Margin (H1):Improved to 41%.
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EBIT (H1):NOK 465 million, an increase of 20.7%.
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Net Profit to Parent (H1):NOK 249 million, with earnings per share of NOK 1.52, up 27%.
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Cash and Liquidity Reserves:NOK 2.3 billion.
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Net Debt:NOK 5.1 billion, NOK 1.6 billion excluding lease liabilities.
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Store Remodelings (Sweden):24 stores remodeled in H1, total of 28 modernized stores.
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Release Date: July 09, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Europris ASA ( FRA:2RG ) reported a sales growth of 3.8% for the first half of 2026, with a 4.4% increase in constant currency.
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Norway showed strong performance with a like-for-like sales growth of 5.7%, driven by high footfall and volume-led basket growth.
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The gross margin improved due to product mix changes and unrealized currency effects, contributing to a 20.7% increase in EBIT for the first half.
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The turnaround project in Sweden is progressing well, with a 10% sales growth in non-food products, enhancing the gross margin.
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Store remodelings in Sweden have been successful, with 28 stores upgraded, leading to higher sales and better margins compared to legacy stores.
Negative Points
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Total sales in the second quarter decreased by 2.8%, impacted by the timing of Easter, which negatively affected sales by approximately 4.5 percentage points.
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The reduction in average price per item due to price-conscious consumers has put pressure on operating costs, particularly in distribution and handling.
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In Sweden, the temporary closure of 24 stores for remodeling negatively impacted sales, contributing to a reported decline of 9.6% in the second quarter.
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Higher operating expenses, driven by increased handling and distribution costs, have affected EBIT, which was lower than last year for the second quarter.
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The deliberate reduction in promotions of low-margin consumables in Sweden led to a decline in footfall and sales, despite improving gross margins.
Q & A Highlights
Q: How should we think about the second half for AoB in terms of the prior guiding of a flat contribution in 2026 compared to 2025? A: Espen Eldal - Chief Executive Officer : We have outperformed our guidance for AoB in the first half, especially with store remodelings having less impact on gross profit than expected. Customers have responded positively to sales mix changes, improving gross margins faster than anticipated. You should be more positive than flat year-over-year for the second half.
Q: Could you give some more comments on the timing of a nationwide marketing push? A: Espen Eldal - Chief Executive Officer : We are ready for a nationwide marketing push for the Christmas season this year, as the concept will be consistent across stores. A larger marketing push will occur next year, but we are already doing local marketing in areas where store refurbishments are complete.
Q: How should we interpret the like-for-like growth in Norway, considering the Easter effects? A: Espen Eldal - Chief Executive Officer : The Easter effect has a significant impact, making it difficult to assess quarterly movements. Overall, we are satisfied with the first half's development, with a 5.7% like-for-like growth in Norway, which is a decent number.
Q: How can you conclude that the lower basket size in Norway reflects more cautious consumers rather than underperformance in your offering? A: Espen Eldal - Chief Executive Officer : We see higher sales of private label products and low price points being chosen by consumers. Campaigns are driving sales growth, and sales around big payment days are becoming more important, indicating consumers are seeking value for money.
Q: Should we expect the higher handling and distribution costs seen in the second quarter to continue? A: Stina Byre - Chief Financial Officer : Volume growth is expected to continue, impacting handling and distribution costs. Wage growth in Norway will also impact our operating expenses, as more hours are needed to handle goods in stores.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
