Festi hf:Consolidated Annual Report 2019

Main results

• Gross proft from sales in Q4 2019 amounted to ISK 5,372 million compared to ISK 4,858 million in Q4 2018, an increase of 10.6%
• Operating expenses in Q4 2019 ISK 3,606 million compared to ISK 3,329 million on Q4 2018, an increase of 8.3%
• EBITDA excluding expenses related to the acquisition of Hlekkur amounted to ISK 1,766 million in Q4 2019 compared to ISK 1,529 million in Q4 2018, an increase of 15.5%
• EBITDA excluding expenses related to the acquisition of Hlekkur amounted to ISK 7,743 million in 2019 compared to ISK 4,958 million in 2018. Subsidiaries Krónan, Bakkinn, Elko and Festi fasteignir became a part of the group 1st of september 2018 making comparison between years difficult.
• Interest bearing liabilities amounted to ISK 33,380 million at the end of 2019 compared to ISK 37,314 million at the end of year 2018.
• Net interest bearing liabilities without lease liabilites ISK 28,011 million at the end of year 2019 compared to ISK 33,047 million 2018. A decrease of ISK 5,036 million between years.
• Equity ISK 28,688 million and equity ratio 35.3% at the end 2019 compared to 33.4% at the end of 2018

“The fourth quarter of 2019 was exceeded by our expectations and in fact a great end to the first full year of the Festi Group's, despite the considerable turbulence in the Icelandic economy. These include capelin failure, WOW air bankruptcy, a decline in tourism and a severe upturn in the run-up to collective bargaining agreements. The Kronan received 1st prize in the Icelandic Customer satisfaction index and the Kronan as a brand is creating a stronger position in the food retail market in Iceland year on year. N1's operations were in line with expectations despite a decline in tourism. ELKO's operations were below expectations earlier this year, but a good turnaround occurred in Q4 2019. Financial position of Festi is very solid and cash flow is strong, reducing the Group's debt by ISK 5 billion during the year, which strengthens the company to remain a leader in the markets we operate in, to create value for all business owners with a sense of economy of scale and trust. "

For more information see the attachments.





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