Hagar (HAGA) Q4 25/26 earnings summary

Executive summary

• Full-year sales reached ISK 197,043 million, up 9.3% year-over-year, with EBITDA rising 23.0% to ISK 18,129 million and profit up 5.2% to ISK 7,394 million.

• Q4 sales grew 4.4% to ISK 48,043 million, with EBITDA up 4.5% to ISK 4,032 million, but profit down 35.4% due to negative fair value changes and higher costs.

• Strong operational performance across all segments, with SMS in the Faroe Islands now fully contributing and increased customer visits in Iceland and the Faroe Islands.

• New procurement partnership with Salling Group expected to lower prices, broaden product selection, and support inflation control.

• Launch of the Takk loyalty program and Hagar Media retail media operations.

Financial highlights

• Gross margin for the year was 24.9%, up 2.1 pp, mainly driven by Olís and SMS; full-year gross profit was ISK 49,124 million.

• OPEX ratio increased by 1.3 pp to 16.4% for the year.

• Equity ratio at year-end was 37.1%, with equity totaling ISK 42,779 million.

• Cash from operating activity was ISK 13,022 million, up 17.2% year-over-year.

• Capital expenditure totaled ISK 4.8b, mainly for store upgrades and new facilities.

Outlook and guidance

• Management expects EBITDA for 2026/27 to be ISK 18,800–19,300 million, reflecting a 3.7% price increase and 5% wage growth.

• Temporary additional operating costs of ISK 470 million expected due to relocation to Álfabakki 2.

• CAPEX for 2026/27 projected at ISK 5,600–6,000 million, mainly for new facilities.

• Economic conditions in Iceland have deteriorated, and Middle East tensions may impact the outlook.

• Salling partnership expected to support lower procurement costs and strengthen competitiveness.