Skel fjárfestingafélag (SKEL) Q1 2025 earnings summary

Executive summary

• Unlisted operating companies performed generally in line with expectations and plans for Q1 2025.

• Consumer market companies saw strong sales growth, with Lyfjaval sales up 19% year-over-year and Löður achieving record car wash revenues in March.

• Corporate market and infrastructure companies experienced revenue and profit growth, with Styrkás EBIT up 13% year-over-year and service revenues up 19%.

• Listed shareholdings posted a loss of ISK 570 million in Q1 2025.

Financial highlights

• Orkan, Löður, and Lyfjaval reported Q1 gross profit of ISK 1,473 million, EBITDA of ISK 691 million, and EBIT of ISK 426 million, slightly below plan.

• INNO revenues rose 1.4% year-over-year to EUR 155.7 million, with EBITDA up 29% to EUR 7.3 million and EBIT up 97.2% to EUR 3.8 million.

• Styrkás reported Q1 gross profit of ISK 2,208 million, EBITDA of ISK 446 million, and EBIT of ISK 343 million.

• Gallon revenues and profits were below projections due to the absence of a capelin season and lower oil demand.

Outlook and guidance

• Orkan and Löður are expected to be in line with plan for the first four months of the year.

• Styrkás annual plan targets ISK 2.4 billion in operating profit for 2025, with strong prospects for energy and chemical products.

• Copper production at Baridi Iceland hf. is expected to commence around mid-next year.