Hagar (HAGA) investor relations material

Executive summary

• Q1 2026/27 delivered strong results, with sales up 5.5% year-over-year to ISK 50.8b and profit up 64.5% to ISK 1,917 million, driven by all business units and especially Olís benefiting from higher global oil prices.

• Gross margin improved by 2.0 percentage points to 26.2%, and EBITDA rose 26.9% to ISK 5,136 million, reflecting operational improvements and favorable market conditions.

• New initiatives included the launch of Hagar Media and the successful introduction of Salling products, enhancing assortment and pricing.

• Dividend of ISK 3,300 million (ISK 3.03 per share) paid in June 2026, representing 50% of prior year profit (excluding certain items).

Financial highlights

• Sales: ISK 50,785 million (+5.5% YoY); EBITDA: ISK 5,136 million (+26.9% YoY); Net profit: ISK 1,917 million (+64.5% YoY).

• Gross margin: 26.2% (+2.0pp YoY); OPEX ratio: 16.7% (+0.3pp YoY); Equity ratio: 37.7% (+0.6pp YoY).

• EPS reached ISK 7.46, up nearly 28% YoY excluding one-off effects; Basic EPS: ISK 1.77 (up from ISK 1.06 YoY).

• Net cash from operations was ISK 635m, down from ISK 5.4b last year due to temporary working capital changes.

Outlook and guidance

• Management maintains EBITDA guidance at ISK 18,800–19,300m for FY 2026/27, expecting temporary profitability improvements to partially reverse in Q2 as oil prices normalize.

• External risks include inflation, interest rates, wage negotiations, and oil market volatility.

• Continued focus on operational improvements, supply chain, and leveraging new revenue streams like Hagar Media.

• Financial position remains strong with secured financing and access to ISK 3.0 billion in credit lines.