Hagar (HAGA) Q1 2026 earnings summary

Executive summary

• Revenue increased 9.2% year-over-year to 48.1 bn ISK, with EBITDA up 25.9% to 4.0 bn ISK and net profit rising 37.1% to 1.2 bn ISK, driven by SMS integration and strong retail performance.

• Growth in grocery retail, with increased customer visits and units sold at Bónus and Hagkaup; digital initiatives and new product launches contributed positively.

• Olís segment sales declined 13.1% due to lower oil prices, but retail demand remained strong and EBITDA increased.

• The SMS acquisition in the Faroe Islands contributed significantly to growth and is now fully consolidated.

• Board approved a dividend of 2,504 m ISK, representing 50% of last year’s profit, paid in June 2025.

Financial highlights

• Revenue reached 48.1 bn ISK, up 9.2% year-over-year; EBITDA was 4.0 bn ISK, up 25.9%; net profit for the quarter was 1.2 bn ISK, a 37.1% increase.

• EBITDA margin improved to 8.4% from 7.3% year-over-year; gross margin reached 24.1%.

• Cash flow from operations rose to 5.4 bn ISK, up from 3.9 bn ISK a year earlier; cash at period end was 5.9 bn ISK.

• Equity increased to 39.7 bn ISK, with an equity ratio of 36.7%; total assets at 108.2 bn ISK.

• Earnings per share were 1.06 ISK, up from 0.78 ISK year-over-year.

Outlook and guidance

• Business outlook remains positive with strong operational momentum and improved efficiency.

• Management forecasts FY 2025/26 EBITDA in the range of 16,000–16,500 m ISK.

• Financial position remains strong, with secured access to credit lines and continued use of market financing.

• Continued investment in business development and digitalization expected to drive new revenue streams.

• Risks include global trade tensions, potential tariffs, and uncertainty in oil prices due to geopolitical conflicts.