Festi hf.: Profit for Q1 of 2020 in the amount of ISK 53 million

Main results

• Gross profit from sales in Q1 2020 amounted to ISK 4,321 million compared to ISK 4,231 million in Q1 2019, an increase of 2.1%
• Due to falling fuel price loss of 140 million is reported in gross profit
• Operating expenses in Q1 2020 ISK 3,301 million compared to ISK 2,902 million on Q1 2020, an increase of 13.8%
• Interest bearing liabilities (excluding lease liabilities) amounted to ISK 33,448 million at the end of Q1 2020 compared to ISK 37,183 million in Q1 2019.
• Net interest-bearing liabilities without lease liabilities ISK 28,425 million at the end of Q1 2020 compared to ISK 36,709 million end of Q1 2019 A decrease of 22,6% between years.
• Equity ISK 28,294 million and equity ratio 35.1% at the end Q1 2020 compared to 32,0% at the end of Q1 2019.

Eggert Þór Kristófersson, CEO Festi hf.:

"The year 2020 got off to a great start and exceeded all expectations. Then the COVID-19 outbreak came into play with the congregation ban in March, which had a significant impact on the Group during Q1 and will have an impact over the next few months.  A closer look at the three main pillars of Festi, mixed fortunes can be seen. Krónan is getting stronger in the food retail market with a sales growth of 13%. ELKO's operations were above expectations with 12,8% sales growth YoY. N1's operations were however highly impacted by the congregation ban, decline in tourism and reported loss on inventory due to falling fuel price in the world market. Never the less; the financial position of Festi is solid and cash flow remains strong.“ 

The Group's focus during the COVID-19 outbreak is on maintaining productivity while keeping its employees and customers safe.  The Group is a critical infrastructure company in Iceland with its network of supermarkets and convenience stores, electronics retail stores, fuel and car service stations around Iceland.  The Group works closely with its suppliers to ensure that customers will have the same range of products as before the outbreak and is fully committed to finding new ways to serve its customers when faced by various quarantine restrictions. 

In connection with the preparation of these financial statements the COVID-19 effects on the business was assessed, both financial and non financial. The Group is balanced in exposure with its diversified business mix.  Parts of the Group's operation are experiencing considerable business growth while other parts are experiencing considerable drop.  In that part of the business, the Group has moved small portion of employees to the part-time salary solution offered by the Government to be able to retain employees while the effects of the outbreak is ongoing.   At the moment the full economic impact of COVID-19 is unknown but the management and the board are monitoring the situation closely.  Festi is committed to achieve its mid- and long term growth targets.

For further information contact Egger Þór Kristófersson CEO at  or Magnús Kr. Ingason CFO at  

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