Festi (FESTI) Q2 2025 earnings summary

Executive summary

• Q2 2025 operations exceeded management expectations, with strong sales and margin growth across all subsidiaries; Lyfja contributed significantly to revenue and margin growth.

• Profit for H1 2025 was ISK 1,699 million, up from ISK 1,155 million YoY; total comprehensive income reached ISK 1,771 million.

• Sale of goods and services rose 20.9% YoY (7.3% excluding Lyfja); margin from sales increased 28.1% (10.5% excluding Lyfja).

• Efficiency gains and cost reductions were supported by new technology and infrastructure investments.

• Cash flow and financial position remain strong, enabling continued investment and shareholder returns.

Financial highlights

• Sale of goods and services for H1 2025 was ISK 81,365 million, up from ISK 68,260 million YoY; Q2 sales reached ISK 43.6 bn, up 20.9% YoY.

• EBITDA for H1 2025 was ISK 6,427 million, up from ISK 4,813 million; Q2 EBITDA increased 35.1% YoY to ISK 3.9 bn.

• Profit for Q2 was ISK 1.4 bn, up 49.0% YoY; H1 basic earnings per share were ISK 5.45, up from ISK 3.83.

• Cash and cash equivalents at 30 June 2025 were ISK 5,142 million, up from ISK 4,075 million at year-end 2024.

• Investments totaled ISK 3.1 bn; dividend paid ISK 1.4 bn; net interest-bearing debt/EBITDA (12m) at 2.8x.

Outlook and guidance

• Operating outlook remains positive with continued growth in store visits and strong summer performance.

• EBITDA guidance for 2025 raised to ISK 15.2–15.6 bn; CAPEX forecast increased to ISK 5.8–6.2 bn.

• Synergies from Lyfja integration and new tech solutions expected to drive further growth.

• Inflation projected at 4% through year-end; minimal supply chain impact from global conflicts anticipated.

• Central bank rates expected to remain stable; strong ISK presents some competitive challenges.