Positive 2024 Performance by Festi hf.
The operations both for the quarter and the full year performed well and exceeded expectations.
Highlights of Q4 2024
Festi hf. has reported significant accomplishments in its fourth quarter results.
Sales reached ISK 41,946 million, marking a commendable increase of 19.0% year-over-year. This growth was influenced by the integration of Lyfja, which began operations in mid-2024. Excluding this impact, the growth was still a robust 6.1%. Additionally, the gross profit from these sales amounted to ISK 10,267 million, which reflects a 26.6% increase compared to the previous year. Without accounting for Lyfja, the growth stands at 8.5%.
Financial Overview
The gross profit margin for the quarter was reported at 24.5%, a modest rise of 1.5 percentage points from the previous year, indicating sustained operational efficiency. However, salaries and personnel costs surged to ISK 5,202 million, a jump of 31.6%, with a year-over-year increase of 7.6% when excluding Lyfja's effects.
Significant impacts were felt due to an administrative fine of ISK 750 million, which elevated operating expenses and subsequently decreased EBITDA for the quarter. Despite these challenges, EBITDA reached ISK 2,957 million, showing a minor decline of 6.1%, but a noteworthy rise of 17.8% when the one-off fine is not considered.
Yearly Performance and Financial Position
For the entire year, profit was reported at ISK 4,018 million, with a total profit amounting to ISK 6,422 million. The year-end revaluation of the company’s real estate contributed an impressive ISK 2,437 million directly into equity. As a result, total equity stood at ISK 43,493 million, representing an equity ratio of 37.9% at year-end, a slight improvement from 37.3% the year before.
The total EBITDA for 2024 was ISK 12,511 million, but if we included Lyfja's full-year operations without the fine, it would have reached ISK 13,940 million. Looking forward, the EBITDA forecast for 2025 is projected between ISK 14,400 million and ISK 14,800 million, demonstrating strong growth expectations.
Statements from the CEO
Ásta S. Fjeldsted, CEO of Festi, commented on the successful quarter: "The company's operations performed well in the fourth quarter, and the results exceeded expectations. The increase in visits and volumes sold in our stores, alongside significant gains in sold fuel litres, is encouraging. Profit margins improved across the board for most product categories, with an impressive 26.6% increase in gross profit from sales of goods and services."
Operating Expenses and Future Trends
Despite the notable rise in operating expenses due to the administrative fine, the year-over-year increase would have been around 20.3% excluding this effect, indicating the effectiveness of recent cost-saving measures. The management is optimistic as all operating segments are set to grow, particularly in the first half of the coming year.
Additionally, the integration of Lyfja is on track, which is expected to drive synergies across various business areas and enhance overall operational efficiency.
Strategic Developments and Future Outlook
Looking back, the integration of Lyfja in July marks a pivotal moment for the Festi group, allowing significant growth in its portfolio. The management of Lyfja, now under Karen Ósk Gylfadóttir, has shown promise with strategic moves, including the relocation to Festi's headquarters.
As of early 2024, Yrkir eignir has taken over the group’s real estate operations. The focus here is on profitability through leasing to retail companies while also pursuing new development projects. Vital developments occurred in Stóragerði, Skógarsel, and Ægisíða among others, with more exciting projects on the horizon.
Sales Process and Market Presence
The company is currently engaged in a sales process involving its stake in Olíudreifing, which is progressing with three shortlisted bidders. Furthermore, N1 has reentered the car-wash market, reinforcing its operational scope by reopening stations and launching a new service station on the Suðurnes peninsula.
In retail, the reopening of ELKO’s flagship store showcases the company’s commitment to improving customer experience and market positioning. Krónan has enjoyed strong growth, buoyed by recent refurbishments, and is expanding its e-commerce capabilities in response to increasing demand.
The success of digital operations across the group cannot be understated, with substantial growth in e-commerce reflecting renewed strategies to address customers' evolving shopping preferences.
Conclusion
As 2025 approaches, Festi hf. is optimistic about continued growth and operational excellence. The company remains committed to boosting revenue, enhancing efficiency, and leveraging the integration of Lyfja to maximize opportunities in the market. Ásta S. Fjeldsted concludes, "We are proud of our achievements and grateful for our loyal customers and dedicated employees across the country."
Frequently Asked Questions
What were Festi's sales figures for Q4 2024?
Festi reported sales of ISK 41,946 million for Q4 2024, a 19.0% year-over-year increase.
How did EBITDA perform in 2024?
EBITDA for 2024 amounted to ISK 12,511 million, with projections for 2025 estimating an increase to between ISK 14,400 million and ISK 14,800 million.
Who is the CEO of Festi?
Ásta S. Fjeldsted serves as the CEO of Festi hf.
What is the outlook for 2025?
The outlook for 2025 is positive with expectations of growth across all business segments and improved financial results.
Where can I find more information about Festi's financial results?
More detailed information can be found on Festi's official website and through their financial announcements.
