Highlights for the third quarter of 2020 · Group revenue increased by 28.5 per cent toNOK 1,897 million (NOK 1,477 million ) · 26.5 per cent like-for-like growth · Stable gross margin of 42.8 per cent despite shift towards groceries (42.6 per cent) · Opex-to-sales ratio decreased to 22.4 per cent (26.5 per cent) · Adjusted EBITDA rose by 53 per cent toNOK 402 million · Adjusted net profit increased by 115 per cent toNOK 191 million (NOK 88 million ) · Well prepared for the important Christmas season - solid start to the fourth quarter ·Stina Charlene Byre appointed CFO - takes up the position on1 April 2021 at the latest CEOEspen Eldal comments: "Europris delivered another strong quarter and I would once again like to thank all employees for their remarkable efforts during these extraordinary times. For the year to date, we have significantly outperformed the market and cemented our position asNorway's leading discount variety retailer. This is the result of solid merchandising in all parts of our value chain."Europris has experienced strong sales growth driven by changed consumer behaviour as a result of strict national infection control measures and solid merchandising. Chain sales increased by 27.2 per cent (26.5 per cent like-for-like sales growth). This was once again significantly higher than the market, which grew by 12.2 per cent according to Kvarud Analyse. Sales growth was driven by the many people who worked from home and the restrictions on travelling abroad which lead to increasing domestic consumption. While it is hard to measure, solid merchandising has probably been another key factor in the strong sales growth during the quarter.Europris has shown flexibility in developing its concept in an extraordinary period, while the organisation has adapted well in order to provide customers with a safe and good shopping experience. Gross margin remained stable during the quarter, despite a shift towards groceries with generally lower margins. Operating expenditure excluding non-recurring items wasNOK 425 million in the third quarter (NOK 392 million ), a rise of 8.7 per cent.Europris also experienced improved scalability and efficiency as the Opex-to-sales ratio decreased to 22.4 per cent (26.5 per cent). Adjusted EBITDA in the third quarter of 2020 wasNOK 402 million (NOK 262 million ) - a rise ofNOK 140 million or 53 per cent. Adjusted net profit wasNOK 191 million (NOK 88 million ) for the third quarter.Europris opened one new store in the third quarter. It relocated one store during the quarter and another had its sales area reduced. The board has approved an additional eight stores for 2020 and beyond, including two city concept stores inOslo and one inBergen . At 30 September,Europris was in a strong financial position with cash and available credits ofNOK 1,430 million (NOK 463 million ). Before the close of the quarter,Europris also announced thatStina Charlene Byre had been appointed as its CFO. Webcast at 08.30 CET today, Friday 30 October. CEOEspen Eldal will host the presentation.Europris invites investors, analysts and media to join the presentation via webcast. It will be possible to ask questions via the web. Material: The third quarter report and presentation will also be made available on www.europris.no/corporate (http://www.europris.no/corporate/investor) and www.newsweb.no. In addition, a recorded version of the presentation will be made available on ww.europris.no/corporate (http://www.europris.no/corporate/investor) approximately two hours after the broadcast has concluded. For questions or further information, please contact:Espen Eldal , CEO, +47 48 29 24 24, espen.eldal@europris.no Trine Engløkken, IR, +47 940 50 937, trine.englokken@europris.no AboutEuropris :Europris isNorway's largest discount variety retailer by sales. The group offers its customers a broad range of quality own brands and brand-name merchandise. Its merchandise is sold through theEuropris chain, which consists of a network of 265 stores throughoutNorway . Of these, 236 are directly owned by the group and 29 operate as franchise stores. The group's headquarters are at Fredrikstad,Norway . This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.
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