Skel fjárfestingafélag (SKEL) Q3 2024 earnings summary

Executive summary

• Operating companies' performance aligned with Q2 interim results, with most segments meeting or exceeding management projections for the first nine months of 2024.

• Styrkás and Orkan outperformed expectations, while Heimkaup faced operational challenges but implemented efficiency measures.

• Merger talks with Samkaup were terminated in October.

Financial highlights

• Styrkás (corporate market/infrastructure) reported 9M gross profit of ISK 7,609m, EBITDA of ISK 2,581m, and EBIT of ISK 2,118m, all above projections.

• Orkan (consumer market) posted 9M gross profit of ISK 5,895m, EBITDA of ISK 2,245m, and EBIT of ISK 1,055m, exceeding projections.

• Heimkaup's 9M EBITDA was ISK 1,630m, 8% below projections.

• Profit from listed shareholdings in Q3 was ISK 1,069m; principal holdings in Skagi and Kaldalón totaled ISK 6,391m at quarter-end.

• Loans stood at ISK 4,236m, with cash and treasury bonds at ISK 3,964m.

Outlook and guidance

• Management aims for Orkan to become Iceland's leading self-service company and a key player in the energy transition.

• SKEL plans to increase foreign asset share, with a focus on the European retail market.

• INNO's EBITDA for 2023/2024 expected between €9.4m and €9.7m, with stronger performance projected for 2024/2025.