Festi (FESTI) Q1 2025 earnings summary

Executive summary

• Sale of goods and services rose 17.3% YoY to ISK 37.8 bn, with margin from sales up 31.0% YoY to ISK 9.2 bn.

• EBITDA increased 31.2% YoY to ISK 2.5 bn, with profit for the period up 45.9% YoY to ISK 294 m.

• Operations were in line with management expectations, with a strong focus on profitability, efficiency, and cost reduction.

• Lyfja acquisition from July 2024 continues to impact YoY comparisons and contributed 14.4% of sales growth.

• Total comprehensive income for Q1 2025 was ISK 294 million.

Financial highlights

• Revenue for Q1 2025 was ISK 37,785.9 million, up from ISK 32,223.1 million in Q1 2024.

• EBITDA for the quarter was ISK 2,489.2 million, compared to ISK 1,897.8 million a year earlier.

• Dividend of ISK 1,401 million was approved and paid in April 2025.

• Net interest-bearing debt decreased by ISK 1.1 bn from year-end; equity ratio at 36.8%.

• Market cap at ISK 92.1 bn, share price up 4.1% since year-end.

Outlook and guidance

• Positive outlook for 2025, with expectations of stable inflation, interest rates, and labor market.

• EBITDA guidance for 2025: ISK 14,400–14,800 m; CAPEX forecast raised to ISK 5,200–5,600 m.

• Revenue synergies from Lyfja and growth in online/app sales expected to continue.

• Management expects continued positive performance, with inflation trending down and potential for interest rate cuts.