Skel fjárfestingafélag (SKEL) Q2 2025 earnings summary

Executive summary

• Significant milestones in 1H 2025 include the merger of Orkan, Lyfjaval, and Samkaup into Drangar hf., the sale of a 15.4% stake in Styrkás, and the acquisition of Suðurhraun 4-6 by Kaldalón.

• Drangar established as a major retail challenger with strong market share in groceries, pharmaceuticals, energy, and car wash services.

• Investment income for H1 2025 was ISK 311 million, down from ISK 362 million in H1 2024.

• Net loss for the period was ISK 559 million, compared to a loss of ISK 314 million in H1 2024.

• Total assets as of June 30, 2025, were ISK 56,663 million, with equity at ISK 37,202 million.

Financial highlights

• Net loss for the period was 559 million ISK for 1H 2025, widening from 314 million ISK in H1 2024.

• Total assets stood at 56,663 million ISK as of June 30, 2025, down from 60,570 million ISK at year-end 2024.

• Equity amounted to 37,202 million ISK at period end, down from 43,728 million ISK at year-end 2024.

• Cash and cash equivalents at period end were ISK 2,582 million, with cash and government bonds totaling 3,703 million ISK.

• Segment revenues: Drangar (consumer market) 23.9 billion ISK, up 6.9% year-over-year; Styrkás EBIT up 4% year-over-year.

Outlook and guidance

• Drangar aims for a 2.5–3 billion ISK improvement in grocery segment profitability over two years through cost reduction and operational simplification.

• Drangar targets a stock exchange listing by end of 2027.

• Ongoing restructuring and one-off charges expected in 2025 due to integration and streamlining.

• Management emphasizes a long-term value creation strategy and support for portfolio companies.