Hagar (HAGA) Q1 2025 earnings summary

Executive summary

• Q1 2024/25 saw sales rise 6.2% year-over-year to 44.1b ISK, with all major business segments contributing positively and Olís and Bónus leading growth.

• EBITDA rose 27.5% to 3.2b ISK, and net profit increased 30.2% to 0.9b ISK compared to Q1 2023/24.

• Margin ratio improved by 2.2 percentage points to 21.6%, reflecting operational optimization and stronger demand.

• Strategic initiatives, cost controls, and operational innovations drove improved performance and customer engagement.

Financial highlights

• Gross profit increased 18.1% year-over-year to 9.5b ISK, with margin ratio rising to 21.6%.

• Salaries and cost ratio increased to 14.7%, mainly due to labor agreements and store expansion.

• Cash from operating activities reached 3.9b ISK, up 16.6% year-over-year; cash position at quarter-end was 4.6b ISK.

• Equity at period end was 29.0b ISK (equity ratio 35.6%); total assets grew 5.6% to 81.5b ISK.

• Basic EPS was 0.78 ISK, up from 0.59 ISK; diluted EPS was 0.77 ISK.

Outlook and guidance

• Management expects full-year 2024/25 EBITDA between 13.8–14.3b ISK.

• Operational outlook remains positive, supported by improved economic conditions and stable financing.

• Summer quarter expected to be strong due to increased travel and tourism.