Festi hf.: Financial results for Q3 2022
- Sale of goods and services ISK 35,146 million compared to ISK 27,064 previous year and increased by 29.9% between years.
- Margin from sale of goods and services was ISK 7,063 million. Gross margin from sales was 20.1% and decreases by 5.3 pp. between years due to increase in global commodity prices.
- Additional cost incurred due to investments in new stores, service stations and in store restaurants which opened in the quarter.
- Income from one-off items in 3rd quarter amounts to ISK 358 million due to reimbursement from the transport equalization fund and expenses ISK 76 million due to the retirement of the former CEO.
- EBITDA was ISK 3,067 million compared to ISK 3,346 million in Q3 2021, decrease of 8.3% YoY.
- Equity was ISK 33,654 million and equity ratio 36.1% at the end of Q3 2022 compared to 39.4% at year-end 2021.
- Net interest-bearing debt without lease liabilities amounted to ISK 28,157 million at the end of Q3 2022 compared to ISK 23,309 million at year-end 2021.
- The company's EBITDA forecast for 2022 is raised by ISK 200 million and is now ISK 10,000 - 10,400 million.
Ásta S. Fjeldsted, CEO of Festi:
“The Company’s operations were good in the third quarter and in line with our expectations. Sale of goods and services increased by 29.9% compared to same quarter last year and amounted to ISK 35.146 million. The turnover in the quarter is the highest that the Company has ever achieved.
Volume grew in all areas of the operations but the large increase in commodity prices YoY had major impact, especially in the fuel sector, which decreased operating margins in total by 5.3 p.p. between years. EBITDA was ISK 3,067 million, which is ISK 279 million lower than same quarter last year.
The Company is expanding with opening of new stores, service workshops, new in-store restaurants, among other things. The increase in number of employees by 110 FTE between years partly explains the increase in salary cost but there are also additional costs due to these new investments in the quarter. Overall we are pleased with the results in the quarter.
Given the performance in the third quarter of 2022 and management assessment of the outlook, the EBITDA guidance for the year 2022 is raised by ISK 200 million and is now in the range of ISK 10,000 – 10,400 million.” says Ásta S. Fjeldsted CEO of Festi.