Hagar (HAGA) Q3 2026 earnings summary

Executive summary

• Q3 2025/26 saw strong operations, exceeding management forecasts with a 12.4% YoY sales increase and a 21.6% rise in profit, while nine-month profit reached ISK 5,413 million, up from ISK 3,964 million YoY.

• EBITDA for the nine months was ISK 14,097 million, compared to ISK 10,881 million in the prior year.

• Customer visits to grocery stores in Iceland rose by 5%, and the new Takk loyalty program was launched, quickly gaining over 16,000 members.

• The new Hagar Media unit was established to leverage in-store and digital advertising, creating a new revenue stream.

• The acquisition of SMS in the Faroe Islands contributed to growth, with its impact not reflected in prior year comparatives.

Financial highlights

• Q3 sales reached ISK 49.1b, up 12.4% YoY; EBITDA was ISK 4.6b, up 25.0%; profit was ISK 1.7b, up 21.6%.

• 9M sales totaled ISK 149.0b, up from ISK 134.3b YoY; 9M profit was ISK 5.4b, up 36.6%.

• Gross margin improved by 2.5 percentage points to 25.1%; OPEX ratio increased by 1.3 percentage points to 16.4%.

• Net cash from operating activities at the end of Q3 was ISK 15.96b, up from ISK 11.1b YoY; net cash at period end was ISK 6.1b.

• Basic earnings per share rose to ISK 4.94 from ISK 3.66.

Outlook and guidance

• Management raised full-year EBITDA guidance by ISK 600m to ISK 17,600–18,100m.

• The outlook remains positive, with strong performance expected across all business units despite economic uncertainties.

• The financial position remains strong with secured financing and access to ISK 3.0b in credit lines.

• Continued use of market financing is anticipated in coming quarters.