Hagar (HAGA) Q2 24/25 earnings summary

Executive summary

• Revenue for Q2 2024/25 increased by 2.8% year-over-year to ISK 46.6bn, with EBITDA down 10.2% and net profit down 17.3%.

• Hagar operates 40 grocery stores, 22 Olís service stations, 43 ÓB stations, and other retail and logistics units in Iceland.

• Retail operations performed well, with growth in Bónus and Hagkaup, but Olís faced a challenging comparison due to last year's one-off projects.

• Formal sale process for Olíudreifing initiated after the quarter.

• New online alcohol store Hagar Wine launched in September, receiving positive customer response.

Financial highlights

• Q2 revenue: ISK 46.6bn (+2.8% YoY); EBITDA: ISK 4.0bn (-10.2% YoY); Net profit: ISK 1.7bn (-17.3% YoY).

• For the first six months, revenue grew 4.4% YoY to ISK 90.6bn; EBITDA up 3.4% to ISK 7.2bn; net profit down 6.0% to ISK 2.6bn.

• Gross profit was ISK 19,711 million, up from ISK 17,975 million year-over-year.

• Earnings per share (basic) were ISK 2.37, compared to ISK 2.47 year-over-year.

• Cash flow from operations ISK 5.6bn for 6M; cash at period end ISK 3.0bn.

Outlook and guidance

• Management maintains full-year 2024/25 EBITDA guidance at ISK 13.8–14.3bn.

• Financial position remains strong, with secured access to short-term financing and continued use of market funding.

• Operating environment has improved with lower inflation and long-term wage agreements.

• Company is positioned to pursue new revenue streams and respond to changing economic conditions.