Festi hf.: Financial results for Q2 2025

Core Insights - The company reported strong financial results for Q2 2025, with sales of goods and services reaching ISK 43,579 million, a year-on-year increase of 20.9% [3][4] - Profit for the quarter amounted to ISK 1,419 million, reflecting a 49.0% increase from the previous year [4][5] - The company raised its EBITDA guidance for 2025 to ISK 15,200 – 15,600 million due to better-than-expected results [4][5] Financial Performance - Sales of goods and services increased by 20.9% year-on-year, with a 7.3% increase when excluding the impact of Lyfja [4] - EBITDA for the quarter was ISK 3,938 million, a 35.1% increase year-on-year, or 21.6% excluding Lyfja [4] - Profit margin improved to 25.3%, up by 1.5 percentage points from Q2 2024 [4] Operational Highlights - The company experienced a 23.1% increase in operating expenses year-on-year, with a notable increase in full-time equivalents by 271, primarily due to Lyfja [4] - Digital sales channels are gaining traction, with new technology and payment solutions enhancing customer service [6] - The company is focused on cost reduction through improved efficiency and product development [5] Strategic Developments - The company initiated a share buyback program on June 30th, planning to purchase up to 2,500,000 shares, not exceeding ISK 800 million in total [4] - Festi signed agreements for the sale of plots in Reykjavík for around ISK 1.0 billion, with a book value of ISK 0.5 billion [4] - New store openings and renovations are underway, including a large format store in Reykjanesbær and a renovated store at Vallakór [10] Market Position - The company maintains a strong position in the market, with increasing sales volumes across all product categories [5] - The summer season is critical for operations, with a focus on meeting customer expectations in both local communities and tourist areas [8] - The company is committed to delivering a cost-efficient product selection to enhance customer satisfaction [8]