Festi hf.: Financial results for Q3 2025

Core Insights - Festi's Q3 2025 performance exceeded expectations, confirming operational strength and momentum across subsidiaries [2][3][7] Financial Performance - Sales of goods and services reached ISK 47,093 million, a 6.4% year-over-year increase, and a 9.1% increase when excluding currency and fuel price effects [3] - Margin from sales amounted to ISK 12,057 million, reflecting an 11.3% increase from the previous year [3] - Profit margin improved to 25.6%, up by 1.1 percentage points from Q3 2024, with a 0.5 percentage point increase when excluding currency and fuel price effects [3] - EBITDA for the quarter was ISK 5,319 million, a 12.2% increase year-over-year [3] - Profit for the quarter was ISK 2,651 million, an 18.8% increase compared to the previous year [3] - Net cash from operating activities increased by 43.5% to ISK 6,664 million [3] - Equity at the end of Q3 2025 was ISK 46,097 million, with an equity ratio of 39.2% [3] Strategic Developments - Festi raised its EBITDA guidance for 2025 by ISK 400 million, now projected between ISK 15,600 million and ISK 16,000 million [3] - ELKO launched ELKO Smart Payments, allowing customers to spread payments flexibly, and plans to introduce a digital advisor powered by AI [4][5] - Krónan opened a new flagship store and plans to expand its store network further [4] - N1 introduced fast-charging for electric vehicles, receiving positive customer feedback [4] - A new refrigerated warehouse is set to open in Q1 2026 to enhance internal efficiency [4] Market Outlook - Despite macroeconomic uncertainties, Festi's outlook remains strong, with a focus on customer service and sustainable products [6][7] - Potential challenges include the impact of recent Supreme Court rulings on interest rates and reduced fishing quotas affecting key export industries [6]