Overview of Sláturfélag Suðurlands Financial Performance
Performance Summary for the First Half of 2025
Sláturfélag Suðurlands has announced impressive growth for the first half of the year. The company reported total revenues of 10.131 billion ISK, reflecting a remarkable rise of 9.4% compared to the previous year. A key highlight of this report is the net profit of 694 million ISK, indicating a substantial increase from 613 million ISK last year. Additionally, the EBITDA performance reached 1.159 billion ISK, surpassing 1.103 billion ISK from the prior year.
This financials report encompasses Sláturfélag Suðurlands and its subsidiaries, which include Reykjagarður hf. and Hollt og gott ehf.
Financial Results Breakdown
Net Income and Operating Revenues
The consolidated net income for Sláturfélag Suðurlands during the January to June 2025 period was 694 million ISK, representing an upward trend from the previous year's 613 million ISK. By the end of June, the total equity of the company stood at 8.880 billion ISK.
Operating revenues recorded a significant increase, reaching 10.131 billion ISK in the first half of 2025 compared to 9.262 billion ISK during the same period last year. Other revenues were reported at 88 million ISK, up from 61 million ISK a year ago.
Cost Analysis
The company's utilization of materials and packaging accounted for 5.249 billion ISK, an increase from 4.779 billion ISK the previous year. The labor cost was noted at 2.278 billion ISK, representing an increase of nearly 8%. Moreover, other operational costs rose to 1.531 billion ISK, up approximately 15.1%, while depreciation reached 279 million ISK with an increase of around 1.2%.
Despite these increases in costs, the operational profit, excluding financial income and expenses, was 881 million ISK, marking an increase from 828 million ISK of the last year.
Financial Position and Liquidity
Sláturfélag Suðurlands demonstrates a robust financial position with an equity ratio of 60% and a liquidity ratio standing at 2.8 by the end of June 2025. Long-term liabilities at the end of this period were 1.997 billion ISK, while the upcoming annual repayments are estimated around 52 million ISK.
Cash available at the close of June amounts to approximately 2.4 billion ISK, maintaining a favorable liquidity position. The cash flow from operations, before interest and taxes, was recorded at 1.157 billion ISK, reflecting a positive progression from 1.106 billion ISK a year earlier.
Future Outlook and Market Conditions
Looking ahead, Sláturfélag Suðurlands has a positive trajectory, with an expected annual income increase of 80 million ISK compared to the previous financial year. The consolidated revenue has grown by 9.4% or 869 million ISK supported by an uptick in meat sales, particularly in the wholesale sector.
However, challenges lie ahead as uncertainties connected to exchange rate developments and foreign market conditions may pose risks to the business operations in the latter half of the year.
The meat sales have been promising this year, with stocks of lamb being lower than the previous year at the start of the slaughter season. Competition from meat imports has negatively impacted the profitability of processed goods but adjustments are underway to adapt operations to the changing environment, emphasizing the quality of domestic production.
Overall, the market position of the company's key brands in the food industry remains strong, aided by positive perceptions which will support the market standing moving forward.
Contact Information
For further details, individuals can contact:
Steinþór Skúlason, CEO at +354 575 6000 – steinthor@ss.is
Sveinn Rafn Eiðsson, CFO at +354 575 6000 – sveinnrafn@ss.is
Frequently Asked Questions
What is the revenue growth percentage for Sláturfélag Suðurlands in 2025?
The revenue growth percentage is 9.4% for the first half of 2025 compared to the previous year.
How much was the net profit for Sláturfélag Suðurlands during this period?
The net profit was recorded at 694 million ISK in the first half of 2025.
What is the current equity ratio of Sláturfélag Suðurlands?
The equity ratio stands at 60%, reflecting a stable financial position.
When can we expect the annual results for 2025?
The annual results for 2025 are expected to be released on February 19, 2026.
What market challenges does Sláturfélag Suðurlands face?
Potential challenges include uncertainties concerning exchange rate fluctuations and competition from meat imports affecting profitability.
