Hagar Hf. · OMXICE:HAGA
Hagar Hf — Q3 2024/25 Earnings Presentation
31 slides from Hagar Hf's earnings presentation, Jan 17, 2025
Slide 1: Presentation of results Q3 2024/25
Presentation of results Q3 2024/25 Operations successful and have been expanded to the Faroe Islands Finnur Oddsson, CEO Guðrún Eva Gunnarsdóttir, CFO January 17th, 2025 *This presentation is translated from the Icelandic version which was published on January 16th, 2025. Should there be discrepanci
Slide 2: Overview
Overview Highlights from operations Financial statements Status and prospects 2
Slide 3: Quarter in a nutshell: Key figures
Quarter in a nutshell: Key figures Q3 2024/25 (change from Q3 2023/24) 43.7 b.ISK 3.7 b.ISK 1.4 b.ISK sales EBITDA profit 0,1% 13,1% 24,6% 22.6% 15.1% 35.4% margin ratio salaries and cost ratio equity ratio 1,9%points 1,4%points 0,1%points 3
Slide 4: External influence factors: Inflation continues to decrease and world fuel price fairly stable
External influence factors: Inflation continues to decrease and world fuel price fairly stable Consumer Price Index, annual change, % 12.5 ▪ Inflation decreased 9.9 10.2 9.8 9.9 9.5 8.9 quite in the period 10.0 7.6 7.7 8.0 7.9 9.0 7.7 7.5 6.7 6.6 6.8 6.0 6.2 5.8 6.3 6.0 and ended at 4.8% - 5.4 5.1 4
Slide 5: Operations: This stands out in the quarter
Operations: This stands out in the quarter ▪ Generally the operations in Q3 were successful where revenues were on par with previous year and profits in line with plans ▪ Customers visits to grocery stores increases in the quarter but sold units decreases slightly - Hagkaup has been a little under p
Slide 6: Stores and warehouses: Operations in Q3 similar as for previous year
Stores and warehouses: Operations in Q3 similar as for previous year Income statement Q3 2024/25 (m.ISK) ▪ Revenue from groceries, specialty products and Q3 '24/25 Q3 '23/24 Δ %Δ warehouses increased by just over 4% year on year and amounted to just over 31.5 b.ISK Income 31.544 30.271 1.273 +4,2% E
Slide 7: Bónus: Number of customers never been as high
Bónus: Number of customers never been as high ▪ Sales in Q3 amounted to 22.0 b.ISK and increased by 5.1% from previous year - profits continue to strengthen ▪ Continuing increased activity where the number of customers increases and has never been higher - a small decrease in total number of units r
Slide 8: Hagkaup: Hagkaup's online store growing fast
Hagkaup: Hagkaup’s online store growing fast ▪ Sales in Q3 amounted to 6.2 b.ISK and increased a little from previous year - profits decreased a little between the years ▪ Customer visits still historically strong, but sold units decreases insignificantly from the previous year - a changed compositi
Slide 9: Olís: Strong operations in Q3 and profits stronger between years
Olís: Strong operations in Q3 and profits stronger between years Income Statement Q3 2024/25 (m.ISK) ▪ Revenue in Q3 amounted to 12.7 b.ISK and declined by Q3 '24/25 Q3 '23/24 Δ %Δ 8.2% between the years - world market fuel price Income 12.707 13.839 -1.132 -8,2% considerably lower this year but in
Slide 10: Faroe Islands: Hagar finalised the P/F SMS transactions
Faroe Islands: Hagar finalised the P/F SMS transactions in Faroe Islands at the end of Q3 ▪ On the November 27th the final purchase agreement was signed, but all conditions regarding the sale had then been fulfilled, such as due diligence and regulatory approval by the Faroe Islands Authorities ▪ Th
Slide 11: Faroe Islands: Purchase price paid in cash and own shares in Hagar
Faroe Islands : Purchase price paid in cash and own shares in Hagar ▪ The purchase price was paid in cash amounting to 267 m.DKK (~5.2 b.ISK) and hand over of 13.867.495 own shares in Hagar valued at 60 m.DKK (~1.2 b.ISK) - average share market value in the transactions was 85,23 ISK, but the value
Slide 12: Faroe Islands: SMS is a new pillar in Hagar's operations
Faroe Islands : SMS is a new pillar in Hagar’s operations and falls in line with core operations ▪ The purchase by Hagar of SMS are in line with Hagar’s objectives and strategy that was presented earlier this year to look for new opportunities to strengthen the company’s activities further, both rel
Slide 13: Faroe Islands: Main operations of the SMS Group
Faroe Islands: Main operations of the SMS Group Grocery stores Restaurants Other shops and services1 Properties ▪ Eight Bónus discount stores ▪ Four restaurants in the SMS ▪ Three small specialty stores under ▪ Extensive property portfolio throughout the Faroe Islands shopping centre in Tórshavn, i.
Slide 14: Faroe Islands enlarge Hagar's market considerably
Faroe Islands: Faroe Islands enlarge Hagar’s market considerably ▪ The Faroe Islands market enlarges Hagar’s market zone considerably ▪ Population of the Faroe Islands is about 55 thousand, but for comparison there are about 385 thousand people living in Iceland - ~385 thousand ~55 thousand Hagar’s
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Slide 16: Properties: Considerable property portfolio and extensive development activities
Properties: Considerable property portfolio and extensive development activities ▪ The property portfolio that Hagar acquired by the purchase of SMS is a robust addition to the present portfolio of the company, but the total property portfolio of Hagar is well over 60 th. m2 - Iceland (over 50. thou
Slide 17: Overview
Overview Highlights from operations Financial statements Status and prospects 17
Slide 18: Operations successful in the quarter and profits strengthened
Operations successful in the quarter and profits strengthened Income Statement Q3 2024/25 (m.ISK) ▪ Sales in Q3 amounted to 43.7 b.ISK and remained nearly unchanged between the Q3 '24/25 Q3 '23/24 Δ %Δ years Sales 43.659 43.683 -24 -0,1% ▪ Gross margin in ISK amounted to 9.9 b.ISK and increased by 9
Slide 19: Profits strengthens and operations in line with plans
Profits strengthens and operations in line with plans Income Statement 9M 2024/25 (m.ISK) ▪ Sales 9M amounted to 134.3 b.ISK and 9M '24/25 9M '23/24 Δ %Δ grew by 2.9% year on year or by 3.8 b.ISK ▪ Sales increased at stores and warehouses Sales 134.305 130.482 3.823 +2,9% amounted to 5.5% but declin
Slide 20: Gross margin strengthens and EBITDA ratio improves slightly
Gross margin strengthens and EBITDA ratio improves slightly Operational key factors (9M 2020/21 – 9M 2024/25) ▪ Good sales increase in recent Sales (b.ISK) Gross margin (%) years - propelled by increased operational activity and the impact of Sales and gross 121.8 130.5 134.3 21.9 21.1 19.1 20.7 22.
Slide 21: Cash from operations increases during the period
Cash from operations increases during the period Consolidated Cash Flow 9M 2024/25 (m.ISK) 9M 2024/25 9M 2023/24 Change ▪ Cash from operating activity amounted to just under 8.3 b.ISK in the Profit of the period 3,964 3,853 111 period and grew by 1.2 b.ISK from comparison year Adjustments 6,793 6.25
Slide 22: Accounts receivable increase temporarily due to SMS acquisition
Accounts receivable increase temporarily due to SMS acquisition Consolidated Balance Sheet November 30th, 2024 (m.ISK) ▪ Non-current assets amounted to 56.3 b.ISK and remained nearly unchanged from end of year 2024/25 30.11. 29.2. 30.11. 29.2. ▪ Current assets grew by 6.4 b.ISK due to 2024 2024 %Δ 2
Slide 23: Return on equity escalated fairly between periods
Return on equity escalated fairly between periods Economic key factors (9M 2020/21 – 9M 2024/25) ▪ Return on equity was 19.1% in the last Return on equity (%) Equity ratio (%) 12 months and increases quite in the comparison period Share- 18.6 19.1 39.8 40.3 16.3 16.9 37.8 35.3 35.4 holders ▪ Equity
Slide 24: Overview
Overview Highlights from operations Financial statements Status and prospects 24
Slide 25: Market price and largest shareholders
Market price and largest shareholders Market price Market price 30.11.2024: 100,0 ISK/share 100 90 80 70 60 50 40 1.7.2020 1.1.2021 1.7.2021 1.1.2022 1.7.2022 1.1.2023 1.7.2023 1.1.2024 1.7.2024 Date Largest shareholders, ownership at end of day 30.11.2024 1. Gildi - Pension fund 17.6% 6. Birta Pens
Slide 26: Earning per share continue to grow
Earning per share continue to grow Accumulated earnings per share last 12 months (ISK per share) ▪ Earnings per share continue to grow and are now 4.75 ISK per share for the last 12 months or +136% +14% 14% higher than a year ago, 4.78 4.75 4.59 4.49 and 136% higher than when 4.17 4.28 4.37 4.40 4.1
Slide 27: Status and prospects
Status and prospects ▪ Hagar’s status and the business outlook is good. - Demanding operating environment but positive development in the last year - long labour agreements and much lower inflation - The operations of the main sections proceeding well - operational efficiency has increased and servi
Slide 28: Questions?
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Slide 29: Companies within the Hagar Group
Companies within the Hagar Group ASSOCIATES WITHIN THE GROUP Bónus is a chain of discount Hagkaup is a leading retail Olís specialises in the sale and Eldum rétt offers it’s customers stores that, from its founding, company which emphasises on service of fuel and other oil food packages through an h
Slide 30: Disclaimer
Disclaimer On behalf of Hagar, attention is drawn to that the statements and information in this presentation are based on, as appropriate, the plans and estimates of the company's directors, but not on facts that may be verified at the publication of the presentation or by any discussion by the com
Slide 31: .hagar
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