Festi hf.: Financial results for Q1 2023
- Sales of goods amounted to ISK 29,484 million, compared to ISK 24,572 million in the previous year and increased by 20.0% between years.
- Gross profit from sales of goods and services amounted to ISK 6,227 million. An increase of ISK 493 million or 8.6% between years.
- Profit margins were 21.1%, which is 2.2 p.p lower than previous year and 0.5 p.p from last quarter. There is continued pressure on profit margins in all product categories.
- Salaries and other personnel expenses increase by 22.2% YoY. Full-time equivalents increase by 12.2% YoY as a result of new stores opening last year.
- EBITDA amounted to ISK 1,401 million compared to ISK 1,749 million in Q1 2022, which equals to a 19.9% decrease between years.
- Equity at the end of Q1 amounted to ISK 32,905 million with an equity ratio of 34.9% compared to equity ratio 36.9% at year-end 2022.
- EBITDA forecast for the year is unchanged at ISK 9,750 – ISK 10,250 million.
Ásta S. Fjeldsted, CEO of Festi
Strong revenue growth but results impacted by the effects of inflation
"The financial results of the first quarter were good and in line with our forecast. Product sales increased by 20.0% compared to the same period last year and amounted to ISK 29,484 million. Margin on sales of goods and services increased by 8.6%, with volume increase in most areas of operations, except in the sale of fuel to large customers. The continued increase in purchase prices of goods affected margin levels, which decreased by 2.2 p.p. year-on-year or 0.5 p.p. between quarters.
The business is growing rapidly with new stores added and services throughout the country which partly explains the increase in the number of full-time staff by 12.2% between years. N1 is leading changes in the energy transition nationwide with the installation of 30 rapid charging stations across the country in the upcoming months. Krónan continues on its guard for the customers, exerts strong competition and is always looking for ways to counter and stop price increases of goods that continue to be reported from suppliers. ELKO continues its run in the electronics market with year-on-year growth of 14%.
The business outlook for the year is good. We are expecting a strong summer with a lot of travelers on the road. Our focus is on cost and continued profitable growth. The Company's EBITDA forecast for 2023 stays unchanged, ISK 9,750-10,250 million," says Ásta S. Fjeldsted, CEO of Festi.