Hagar hf: Financial results for Q3 2025/26

Strong operations and guidance raised - business development supports growth

The interim financial statements of Hagar hf. for the third quarter of the 2025/26 financial year were approved by the company’s Board of Directors and CEO at a board meeting held on 15 January 2026. The statements cover the period from 1 March to 30 November 2025. The interim financial statements include the consolidated accounts of the company and its subsidiaries and have been prepared in accordance with International Financial Reporting Standards (IFRS). The statements have neither been reviewed nor audited by the company’s auditors, PricewaterhouseCoopers ehf.

Key figures*

• Sales in Q3 amounted to 49,068 m.ISK (12.4% increase from Q3 2024/25). Sales in 9M amounted to 149,000 m.ISK (10.9% growth from 9M 2024/25). [Q3 2024/25: 43,659 m.ISK, 9M 2024/25: 134,305 m.ISK]
• Gross profit Q3 amounted to 12,335 m.ISK (25.1%) and 36,828 m.ISK (24.7%) for 9M. [Q3 2024/25: 9,885 m.ISK (22.6%), 9M 2024/25: 29,596 m.ISK (22.0%)]
• Earnings before interest, taxes, depreciation, and amortisation (EBITDA) Q3 amounted to 4,566 m.ISK or 9.3% of sales. EBITDA 9M amounted to 14,097 m.ISK or 9.5% of sales. [Q3 2024/25: 3,653 m.ISK (8.4%), 9M 2024/25: 10,881 m.ISK (8.1%)]
• Profit for Q3 amounted to 1,692 m.ISK or 3.4% of sales. Profit for 9M amounted to 5,413 m.ISK or 3.6% of sales. [Q3 2024/25: 1,391 m.ISK (3.2%), 9M 2024/25: 3,964 m.ISK (3.0%)]
• Comprehensive income for Q3 amounted to 2,264 m.ISK and 5,905 m.ISK for 9M. [Q3 2024/25: 1,391 m.ISK, 9M 2024/25: 3,964]
• Basic earnings per share in Q3 were 1.55 ISK and 4.94 ISK for 9M. [Q3 2024/25: 1.29 ISK, 9M 2024/25: 3.66 ISK]. Diluted earnings per share in Q3 were 1.29 ISK and 4.28 ISK for 9M. [Q3 2024/25: 1.26 ISK, 9M 2024/25: 3.59 ISK]
• Equity amounted to 41,380 m.ISK at the end of the period and equity ratio was 34.8%. [Year end 2024/25: 38,489 m.ISK and 36.6%]
• Management’s guidance for the financial year 2025/26 was increased in connection with the publication of Q3 and assumes that EBITDA will be 17,600-18,100 m.ISK.

*SMS became part of Hagar Group in Q4 2024/25 and therefore the impact is not reflected in the previous year‘s comparative figures.

Operational highlights

• The third quarter delivered strong results, with solid performance across all business segments.
• The gross margin reached 25.1%, an increase of 2.5 percentage points in the quarter – excluding SMS, the gross margin was 24.2%.
• Customer visits to grocery stores in Iceland increased by nearly 5% during the quarter. The number of units sold also grew, by just under 3% over the same period.
• Fuel sales volume decreased by 10% in the quarter – retail fuel sales remained solid, while total volume decreased due to lower sales of jet fuel and volume shifts between periods.
• Customer visits at SMS in the Faroe Islands increased by 2.5% during the quarter.
• In mid-November, SMS opened a new 3,000 m² retail center in Runavík in the Faroe Islands, adding to Hagar’s property portfolio, which now totals around 65,000 m².
• During the quarter, preparations were completed for Hagar’s new loyalty program, Takk, which launched on 14 January – Takk is expected to enhance customer value, service, and overall experience.
• Hagar has established a new centralized operating unit, Hagar Media, leveraging the Group’s strong infrastructure to distribute third-party information to customers.
• Hagkaup began a partnership with Wolt for grocery ordering and home delivery within less than one hour from stores in the Reykjavík area and Akureyri.  

Finnur Oddsson, CEO:

Hagar’s operations are performing well across the board, as reflected in the results for the third quarter of the 2025/26 financial year, which were slightly above forecasts. Product sales in the Group amounted to ISK 49.1 billion and increased by 12.4%, and performance strengthened compared to previous year; EBITDA amounted to ISK 4,566 million and profit to ISK 1,692 million, representing a meaningful increase from last year. Comparisons between periods are affected by the inclusion of SMS in the Faroe Islands in the Group’s consolidated results, as SMS was not part of the Group in the prior year.

Revenue from Stores and Warehouses - Iceland amounted to just over ISK 33.7 billion, representing an increase of just under 8% compared to last year, and EBITDA amounted to around ISK 3.0 billion and strengthened as well. The number of customers visiting grocery stores and the number of units sold continued to grow. Bónus is at the forefront in this respect, with strong sales growth driven by the above-mentioned increase in units sold and customers seeking value and convenient grocery shopping, along with a broader assortment of fruit and vegetables, health products, and ready-made and time-saving meals. The number of Bónus stores offering “Gripið & Greitt” self-scan continues to increase and “Ódýrast vikunnar í Bónus” (e. Value of the Week in Bónus) grows in strength and saves customers tens of millions of ISK per month. As before, there is a strong emphasis on limiting price increases, and around half of the product range in stores has remained unchanged or decreased in price compared to the same time last year. At Hagkaup, volumes have also increased in a quarter that is typically busy as November has become one of the largest retail months of the year. Theme days, including those related to health and Italian cuisine, were well attended, and online sales continue to increase significantly, especially in November with numerous promotional days. Hagkaup’s new service in partnership with Wolt has been well received, giving customers access to Hagkaup’s wide assortment online with home delivery within an hour. Operations at Aðföng and Bananar performed well, in line with increased volume in stores, as did Zara, Eldum rétt and Stórkaup.

Operations at Olís performed well, despite a decline in revenue, which amounted to ISK 11.8 billion. The number of liters sold to industries decreased, mainly due to lower sales of jet fuel and volume shifts between periods. Olís’ results were similar to last year, with strong performance driven by improved operational efficiencies achieved in recent quarters, increased revenue from general goods sales, foodservice, and new services such as home delivery with Wolt and well-attended Glans car wash stations. A new Glans location was recently opened at Bæjarlind in Kópavogur.

Our business in the Faroe Islands, SMS, is performing well and results are slightly above forecasts. A new SMS retail center was opened in November, where the company operates two stores and a restaurant as well as leasing retail space to a third party. The property, located in Runavík, is added to Hagar’s property portfolio, which now totals around 65,000 m². SMS revenue in the quarter amounted to just over ISK 3.7 billion, and the overall outlook for operations is positive.

In recent quarters, both a technological and knowledge foundation has been laid to build new solutions that enhance customer service and/or create new revenue streams within Hagar’s operations. Among these projects is Hagar’s loyalty program, which was formally launched on January 14 under the name Takk (e. Thank you). Takk is a loyalty program, in a new app, that offers customers better terms, attractive benefits and new services. Customers earn “Takk krónur” when they buy selected products at Bónus, Hagkaup and Eldum rétt and can redeem them again in Bónus and Hagkaup stores nationwide. In addition, the Takk app provides access to a wide range of events, games, new services and attractive offers from partners such as Glans, Grill 66 and Lemon. Going forward, Takk will be used as a platform to build further new services for Hagar’s customers.

As part of business development within the Group, a new operating unit has been established, “Hagar Miðlar” (e. Hagar Media), whose role is to leverage the Hagar’s diverse infrastructure to distribute advertising, information and engaging content from third parties to customers, both in stores and online. This is a new business unit at Hagar, but retail media has been in rapid growth internationally, as point-of-sale media is both more targeted and more effective than traditional advertising channels. Hagar Media will create a new revenue stream built on underutilized infrastructure within Hagar, while also enhancing customer service through more effective information sharing and improved experience.

Construction has commenced on new facilities for Eldum rétt and Ferskar kjötvörur at Álfabakki 2, with operations expected to relocate in the autumn of 2026. The new facilities will provide improved efficiency of production and create a range of opportunities to expand the companies’ product offerings.

Hagar’s operations continue to perform well, and we are pleased with both the results of all operating units and the new strategic initiatives that point to future revenue streams. As before, it is the outstanding team of employees at Hagar and its subsidiaries who deserve the credit for the strong results and the company’s current position, strong financial standing and the fact that operating performance of the main units is above forecasts. For this reason, and following strong trading in December, the earnings forecast has been updated and EBITDA for the year is expected to be in the range of ISK 17,600 – 18,100 million. The outlook for Hagar’s operations remains positive.

Presentation meeting on Friday, 16 January 2026

A presentation meeting for investors and market participants will be held at Nauthóll, Nauthólsvegur 106, Reykjavík, on Friday, 16 January 2026, at 8:30 a.m. At the meeting, Finnur Oddsson, CEO, and Guðrún Eva Gunnarsdóttir, CFO, will present the company’s operations and financial performance and answer questions.

The meeting will also be live-streamed, and registration for the stream is available at: . Questions related to the financial results can be sent to the email address and will be answered as possible at the end of the meeting.

Presentation materials will be available in Icelandic on Hagar’s website, , at the start of the meeting. Presentation materials will be made available in English no later than 19 January at .

For further information, please contact Finnur Oddsson, CEO ( ), and Guðrún Eva Gunnarsdóttir, CFO ( ), by telephone 530-5500 or email.

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