Festi (FESTI) Q3 2024 earnings summary

Executive summary

• Q3 2024 sales of goods and services reached ISK 44.3 bn, up 18.5% YoY, with margin from sales up 26.3% and EBITDA up 21.4%.

• Lyfja's operations were consolidated from July 1, 2024, following its acquisition in June, impacting YoY comparisons.

• Profit for Q3 was ISK 2,232 million (+22.9% YoY); profit for 9M 2024 was ISK 3,387 million.

• All major operating segments reported revenue and margin growth, with notable digital and sustainability initiatives.

• EBITDA guidance for 2024 was raised by ISK 400 million to ISK 12,700–13,100 million.

Financial highlights

• Margin from sales was ISK 10,829 million (24.5%) in Q3; 9M sales reached ISK 112,517 million, up from ISK 101,017 million YoY.

• EBITDA for Q3 was ISK 4,741 million (+21.4% YoY); for 9M 2024, ISK 9,554 million.

• Cash from operating activities was ISK 4,643 million in Q3, up 37.2% YoY.

• Salaries and personnel expenses rose 31.3% YoY, mainly due to Lyfja acquisition and wage increases.

• Basic and diluted EPS for 9M 2024 was ISK 11.13, compared to ISK 8.09 in 9M 2023.

Outlook and guidance

• Business outlook for the next quarter is positive, with raised EBITDA guidance for 2024 at ISK 12,700–13,100 million.

• CAPEX forecast for 2024 reduced by ISK 400 million to ISK 4,000–4,400 million.