Ölgerðin Egill Skallagrímsson (OLGERD) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 2024 was ISK 12.7 billion, down 0.4% year-over-year; six-month revenue was ISK 24.0 billion, up 0.6% year-over-year, with net profit for H1 at ISK 1.4 billion, down 34.5%.

• EBITDA for Q2 2024 was ISK 1.7 billion, down 14.3% year-over-year; six-month EBITDA was ISK 2.7 billion, down 12.3%.

• Net profit for Q2 2024 was ISK 0.9 billion, down 21.9% year-over-year; adjusted for one-time gains, H1 profit fell 22%.

• Market conditions shifted to stagnating sales after strong growth, with reduced tourist stays and lower hospitality demand.

• Gross margin for Q2 was 32.6%, down 1.1 points; labor cost ratio increased by 1.0 point in Q2 and 0.8 points for H1.

Financial highlights

• Six-month EBITDA margin decreased to 11.3% from 13.0% year-over-year; EBIT margin fell to 9.0% from 10.9%.

• Net interest-bearing debt increased to ISK 7.5 billion; NIBD/EBITDA ratio at 1.5.

• Equity ratio at period end was 48%, down slightly year-over-year.

• Cash position decreased to ISK 158 million at period end.

• Dividend of ISK 1.4–1.42 billion paid in June 2024.

Outlook and guidance

• 2024 EBITDA guidance revised to ISK 4.9–5.3 billion, mainly due to Collab export investment; excluding Collab export, guidance would be ISK 5.2–5.6 billion.

• Revenue up 1% so far in Q3; competitive pressure remains high, especially from large retailers and new entrants.

• No major risks or red flags identified in the current outlook.