Festi hf.: 2025 Annual report

About this update from Festi Hf.

End of a strong year for Festi: Strong operational performance in the quarter and the results for the year significantly exceeded the company's initial guidance. Main results in Q4 2025 Ásta S. Fjeldsted, CEO: "We are proud of the results achieved last year and first and foremost thankful to loyal customers and our exceptional employees all over the country. All our companies are improving their operations by increasing sales of goods and services as well as simultaneously achieving operating cost efficiency. Earnings have increased by 35.3% year-on-year, excluding the effects of one-off cost in fourth quarter last year and the equity ratio was 41.2% at year-end. The company has thus strengthened its position in most areas and is in a very strong financial position at the end of the year. We are ready going forward to capitalise on the right opportunities – whether they are within or outside the group," says Ásta S. Fjeldsted, CEO of Festi, and continues: "The fourth quarter was certainly strong, as all of the Group’s companies delivered results above initial guidance. Increased operations, improved economies of scale and increased synergies are key factors in the improved performance. Success has been achieved by keeping costs down and utilising the size of the group in relations with suppliers and foreign partners with the aim of offering customers the best possible price at any given time. A significant effort to reduce unidentified inventory shrinkage in stores has also resulted in increased profit margins and improved operating results from the year before. The development of smart solutions to improve customer service experience is also a major factor in the companies' growth, they are well received and result in a higher number of new customers. There are exciting times ahead within the Group where the focus will continue to be on increased synergies, good store locations and smart solutions to simplify lives and increase the quality of life of our customers – every day." Main news from the company's operations in the fourth quarter: Krónan performed strongly and the number of transactions increased by 7.5% year-on-year, with a 9.2% increase in volume. The turnover of Krónan's Smart Store has increased by 50% year-on-year, but Krónan added a significant number of delivery locations for the Smart Store during the year and now services its customers in a total of 96 postcodes throughout the country. N1 has increased the number of new cardholders by 17% during the year and the use of the app has increased by 40%. New services such as mileage registration in the N1 app have been a hit, and being able to charge and pump through the app is delivering more satisfied customers with larger average basket size than before. An agreement has been reached for N1 to invest in Local salad and acquire a 70% ownership stake in the company. Local operates six locations and has established a strong market position in fresh and healthy fast food. N1 intends to build on this foundation through targeted development going forward. Lyfja continues to transform and upgrade pharmacies throughout the country. Furthermore, the product range will be expanded from 1 March, as Lyfja has acquired the brand Jurtaapótekið . Increased efficiency and improved service have been achieved with a new pharmaceutical robot, which also serves a large part of Lyfja's home delivery services. The Lyfja app is growing rapidly, and the fourth quarter was the largest quarter in sales ever. The decision was made to close the Heilsuhúsið store for streamlining purposes at the end of January, but Lyfja will continue to offer the store's most popular products in Lyfja stores and heilsuhusid.is. ELKO introduced its own consumer loan system, ELKO's Smart Payments (Snjallgreiðslur), where customers can spread payments for up to 36 months. The reception has exceeded all expectations, and in the first two months, more than 1,500 loans were disbursed to customers. Demand for the company's products has never been higher, and promotional days such as Black Friday and Digital Monday were the largest in the company's history. Bakkinn vöruhótel is in the final stages of opening a new refrigerated warehouse and thereby expanding its operations to support even better growth and improved quality of fresh products in Krónan. Improving the utilisation of own premises has been a point of emphasis within the group, and in this context new office facilities were constructed in the warehouse of Bakkinn in Skarfagarðar, where Heilsa moved its office operations during the year. Festi completed the base prospectus for bond issuance in the fourth quarter and completed the sale of a six-month commercial bill for ISK 1,300 million at nominal value at terms corresponding to a flat rate of 7.94%. This is the first commercial bill issue in the company's history, and the reception was very positive. Many projects on the agenda in the new year: The outlook for 2026 is good , despite uncertainty in economic developments, with rising inflation forecast for the first half of the year. Festi expects similar number of tourists as last year and all operations are expected to improve their results from year 2025. Great emphasis will continue to be placed on increased optimisation and efficiency throughout the Group's value chain, which will benefit our customers greatly. In addition, work is underway on many integration and development projects that we look forward to introduce to customers later in the year. Festi expects to deliver improved operating results in 2026, the company's EBITDA forecast for 2026 amounts to ISK 16,500 – 17,000 million.   Investor meeting and online presentation on Friday, February 6 th , 2025 An investor meeting and online presentation for market participants will take place on Friday, February 6 th where Ásta S. Fjeldsted, CEO of Festi, and Magnús Kr. Ingason, CFO of Festi, will present the Group's performance and answer questions. The meeting starts at 08:30 local time at the company’s headquarters at Dalvegur 10-14, 3 rd floor. Registration for the web stream takes place at: https://www.festi.is/en/tenglar/results-Q4-2025 Participants attending virtually will be able to ask questions during the meeting via the e-mail [email protected] . Answers will be provided at the end of the presentation. The presentation will be held in Icelandic. Promotional material for the meeting will be available after that on the Festi website: https://www.festi.is/en/fjarhagsupplysingar For further information please contact Ásta S. Fjeldsted, CEO ( [email protected] ) or Magnús Kr. Ingason, CFO ( [email protected] ). Attachments

View stock analysis, news, and events for Festi Hf.