Festi hf.: Financial results for Q2 2025

Main results in Q2 2025

• Sales of goods and services amounted to ISK 43,579 million, an increase of 20.9% between years but 7.3% excluding the impact of Lyfja, which became part of the group in July 2024.
• Margin from sales of goods and services amounted to ISK 11,008 million, an increase of 28.1% from the previous year but 10.5% excluding the effect of Lyfja.
• Profit margin was 25.3%, up by 1.5 p.p. from Q2 2024 and increasing by 0.9 p.p. from last quarter.
• Salaries and personnel costs amounted to ISK 5,585 million, an increase of 26.6% between years but 5.9% excluding the effect of Lyfja.
• EBITDA amounted to ISK 3,938 million, increasing by 35.1% between years but increasing by 21.6% excluding the effect of Lyfja.
• Profit for the quarter amounted to ISK 1,419 million, increasing by ISK 467 million between years.
• Equity amounted to ISK 44,123 million, and the equity ratio was 37.7% at the end of Q2 2025, compared to 37.9% at year-end 2024. A dividend of ISK 1,401 million was paid to shareholders on 9^th of April.
• The company’s EBITDA guidance for the year 2025 was raised 17^th of July by ISK 800 million and is ISK 15,200 – 15,600 million.

Ásta S. Fjeldsted, CEO:

• The company's operations in the second quarter of the year were results exceeded expectations.
• Sales of goods increasedin all product categories, increasing by 20.9% between years (7.3% excluding Lyfja). Transactions increased by 8.9% and the volume of fuel liters by 3.3%
• Profit margins increased in all of the Group's product and service categories, overall by 1.5 p.p. between years.  Margin from sale of goods and services amounted to ISK 11,008 million, an increase of 28.1% between years.
• Operating expenses for the quarter increased by 23.1% year-on-year (8.3% excluding the effect of Lyfja) while the number of full-time equivalents increased by 271 year-on-year mostly due to Lyfja
• EBITDA for the quarter amounted to ISK 3,938 million, an increase of 35.1% between years or an increase of 21.6% excluding the impact of Lyfja.
• Profit for the quarter in 2024 amounted to ISK 1,419 million, an increase of 49.0% from the previous year, or by ISK 467 million.
• As stated in the company's announcement on July 17th, the company's EBITDA guidance has been increased by 800 million ISK due to better results for the quarter and an updated forecast for the second half of the year. The company's EBITDA guidance for 2025 is now 15,200 – 15,600 million ISK.

Highlights of Q2 25:

• The execution of the share buyback program was initiated on June 30th. It is planned to purchase a maximum of 2,500,000 of the company's own shares, which corresponds to 0.80% of the issued share capital, provided that the total amount of the buybacks will never exceed ISK 800 million in purchase price.
• Festi has signed agreements with Sérverk ehf. for the sale of the company's plots at Skógarsel 10 and Stóragerði 40 in Reykjavík, the agreements are subject to various conditions, such as agreement from city of Reykjavík for the planned use for the plots. The sale price of the plots is around 1.0 billion ISK, while book value is 0.5 billion ISK. The transactions will not be included in the group’s settlement until all conditions of the agreement are fulfilled. There is uncertainty about when that will happen, but expectations is that no later than in the first quarter of 2026.
• Yrkir purchased lease and construction rights to the plot in Urriðaholtsstræti 3-5 in Garðabær. Plans are there to build a new store for Krónan, along with office space in higher floors within the next years. The purchase is subject to various conditions, including the final approval of the zoning plan for the property.
• Yrkir acquired Dalakofinn at Laugar in Reykjadalur, a property that operates a restaurant and retail store, where N1 has also managed fuel services on the site for many years. Following the acquisition, N1 took over the operation of both the restaurant and the store.
• Krónan continues to expand the Online-store-network across the country by opening for home deliveries in Egilsstaðir, Fellabær, Seyðisfjörður, Borgarnes, and Kjalarnes. With these additions, the coverage of Krónan's Online-store reaches 87% of the population.
• Krónan opened its completely renovated and modern store at Vallakór and is preparing to open a large format store in a new shopping center at Fitjabraut, Reykjanesbær, at the end of August.
• N1 launched a new service through the N1-app called "My Station", enabling customers to select their N1 station anywhere in the country and get the lowest fuel price that N1 offers at any given time. Simultaneously, N1 introduced the "Pump in App" feature allowing customers to activate any N1 fuel pump through the app and pay seamlessly once refueling is complete. These additions have received excellent feedback from customers.
• Lyfja opened its renovated and modern pharmacy store at Garðatorg in Garðabær, and a new and upgraded website lyfja.is was launched at the end of the quarter. Customers can now purchase prescription drugs and over-the-counter medicines online and have them delivered to their homes, just as in the Lyfja app.
• ELKO is strengthening its position through increased online sales, driven by a new website design and a stronger focus on accessories and private label products, resulting in higher sales and improved margins.

From the CEO of Festi, Ásta S. Fjeldsted:

Operations in the second quarter were good, with results exceeding expectations. It is particularly pleasing to see that all Group companies, each within their respective markets, are increasing sales volumes and improving their operating results, clearly demonstrating strong momentum year-on-year. As before, significant progress is being made in cost reduction through targeted product development, enhanced efficiency, and improved processes benefitting both customers and shareholders thanks to the Group’s growing economies of scale.

Digital sales channels continue to gain traction across the Group with the introduction of new technology and payment solutions, as we have placed strong emphasis on enhancing customer service in this area in recent years. The solid infrastructure of the Festi Group will ensure continued development, with further improvements in efficiency and reductions in operating costs.

At the investors’ presentation on July 30th, we will, as in previous meetings, highlight one of Festi’s subsidiaries. On this occasion, Magnús Hafliðason, CEO of N1, will present N1 and the exciting initiatives currently underway there.

The summer is the most important period of the year for our operations, as many people are travelling and relying on our services and product selection across the country. Our extensive network of stores and service stations in rural areas plays a vital role in Festi’s business, serving both local communities and the large number of tourists travelling around Iceland. Demand is steadily increasing across sectors and regions. We are committed to meeting customer expectations by delivering the right product selection, wherever and whenever needed, in the most cost-efficient manner possible. Competition keeps us on our toes and ensures we remain agile. The company’s position is strong, our goals are clear, and our employees focused and motivated to deliver results,” says Ásta S. Fjeldsted CEO of Festi

Attachments

• Festi hf - Consolidated Statements for 2025 Q2
• Festi hf - Company announcement Q2 2025