Interim report
Page 2
Condensed Consolidated Interim Financial Statements 3 0 September 2025 2 Contents Page Endorsement and Statement by the Board of Directors and the CEO …….………………………………….…… 3 Consolidated Statement of Comprehensive Income ………….…………….…………………………………..…… 4 Consolidated Statement of Financial Position ………….…………………………………………….………….…… 5 Consolidated Statement of Changes in Equity …………………………………………………………….…….…… 6 Consolidated Statement of Cash Flows ……………………………………………………………………….….…… 7 Notes to the Condensed Consolidated Interim Financial Statements ……………………………………………… 8 1. Reporting entity …………………………………………………………………………………………………… 8 2. Basis of preparation ………………………………………………………………………………….…………… 8 3. Use of estimates and judgements ……………………………………………………….……………………… 8 4. New and revied IFRS's …………………………………………………………………………………………… 8 5. Operating segments ……………………………………………………………………….……………………… 9 6. Operating income ………………………………………………………………………….……………………… 11 7. Margin from sale of goods and services …………………………………………………….….….…………… 11 8. Salaries and other personnel expenses ………………………………………………………………………… 12 9. Other operating expenses ………………………………………………………………………………...……… 12 10. Finance income and finance costs ……………………………………………………………………….……… 12 11. Operating assets ……………………………………………………………………………………………...…… 13 12. Share options ……………………………………………………………………………………………...…… 13 13. Loans from credit institutions …………………………………………………………………...………………… 14 14. Lease liabilities …………………………………………………………………………………….………………… 15 15. Group entities …………………………………………………………………………………….………………… 16 16. Other matters …………………………………………………………………………………….………………… 17 17. Financial ratios ……………………………………………………………………………………………...……… 17
Page 3
Condensed Consolidated Interim Financial Statements 3 0 September 2025 3 Endorsement and Statement by the Board of Directors and the CEO Operations of the Group The Condensed Consolidated Interim Financial Statements of Festi hf. for the period from 1 January to 3 0 September 2025 have been prepared in accordance with International Accounting Standard IAS 34, Interim Financial Reporting, and should be read in conjunction with the Group's Annual Consolidated Financial Statements as at and for the year ended 31 December 2024. The interim financial statements comprise the Consolidated Interim Financial Statements of Festi hf. (the "Company") and its subsidiaries together referred to as the "Group". The Condensed Consolidated Interim Financial Statements have not been audited or reviewed by the Company's independent auditors. Operations in the nine-month period ended 30 September 2025 For the period from 1 January to 30 September 2025, profit amounted to ISK 4,349 million (2024 9M: 3,387 million). Total comprehensive income for the period was ISK 4,367 million (2024 9M: 3,399 million). At the end of the period equity amounted to ISK 46,097 million, including share capital in the amount of ISK 310 million. Based on the Company's 2025 Annual General Meeting resolution in March, a dividend of ISK 1,401 million was approved and paid to shareholders in April. Reference is made to the Consolidated Statement of Changes in Equity regarding information on changes in equity. The operations in the third quarter were good and better than management expectations. There was considerable increase in number of visits to our stores compared to last year. All business segments increased both sales and margin contribution from same quarter last year. Sale of goods and services in total increased by 6.4% from same quarter last year. Margin from sales increased by 11.3%. Margin contribution level increased by 1.1 percentage points. Considering strong results for the quarter and good outlook for the remainder of the year, EBITDA forecast for 202 5 is increased by ISK 400 million to ISK 15,600 – 16,000 million. Statement by the Board of Directors and the CEO The Company's Condensed Consolidated Interim Financial Statements have been prepared in accordance with International Financial Reporting Standard IAS 34 Interim Financial Reporting as adopted by the European Union and, as applicable, additional requirements of the Icelandic Financial Statements Act. According to the best of our knowledge, in our opinion the Condensed Consolidated Interim Financial Statements give a true and fair view of the financial performance of the Group for the nine-month period ended 3 0 September 2025, its assets, liabilities and financial position as of 30 September 2025, and change in cash and cash equivalents for the period then ended. Furthermore, in our opinion the Condensed Consolidated Interim Financial Statements and the Endorsement and Statement by the Board of Directors and the CEO give a true and fair view of the development and results of the Group´s operations and its position and describes the principal risk and uncertainties faced by the Group. The Board of Directors and the CEO have today discussed the Company's Condensed Consolidated Interim Financial Statements of Festi hf. for the period from 1 January to 30 September 2025 and confirm them by means of their signatures. Kópavogur, 30 October 2025. Board of Directors Hjörleifur Pálsson, Chairman Guðjón Karl Reynisson, Vice-Chairman Edda Blumenstein Guðjón Auðunsson Sigurlína Ingvarsdóttir CEO Ásta Sigríður Fjeldsted
Page 4
Condensed Consolidated Interim Financial Statements 3 0 September 2025 4 Amounts are in thousands of ISK Consolidated Statement of Comprehensive Income for the period from 1 January to 30 September 2025 The notes on pages 8 to 17 are an integral part of these condensed financial statements. Notes 2025 2024 2025 2024 1.7.-30.9. 1.7.-30.9. 1.1.-30.9. 1.1.-30.9. 6 47.093.027 44.256.657 128.457.975 112.516.841 35.036.015)( 33.427.482)( 96.180.923)( 86.061.971)( 7 12.057.012 10.829.175 32.277.052 26.454.870 6 544.788 587.936 1.662.926 1.622.655 8 5.225.073)( 4.826.266)( 16.114.737)( 13.183.557)( 9 2.057.334)( 1.850.197)( 6.078.921)( 5.340.055)( 6.737.619)( 6.088.527)( 20.530.732)( 16.900.957)( Operating profit before depreciation, amortisation 5.319.393 4.740.648 11.746.320 9.553.913 Depreciation of property and equipment and leased 1.494.962)( 1.320.726)( 4.484.096)( 3.483.517)( 28.049)( 8.584 103.352 264.521 3.796.382 3.428.506 7.365.576 6.334.917 10 124.698 109.054 333.292 267.554 10 913.690)( 1.006.057)( 2.888.121)( 2.908.414)( 13.934)( 36.031)( 26.312)( 19.848)( 250.939 250.197 524.388 470.897 551.987)( 682.837)( 2.056.753)( 2.189.811)( 3.244.395 2.745.669 5.308.823 4.145.106 593.531)( 513.679)( 959.421)( 758.546)( 2.650.864 2.231.990 4.349.402 3.386.560 Other comprehensive income Translation difference arising from operations 4.590 10.340 9.657)( 1.303 Effective portion of changes in fair value 58.935)( 12.573 27.586 10.787 54.345)( 22.913 17.929 12.090 2.596.519 2.254.903 4.367.331 3.398.650 8,52 7,30 13,97 11,13 8,42 7,30 13,81 11,13 Salaries and other personnel expenses ................ Other operating expenses ..................................... assets and amortisation of intangible assets ........ Total comprehensive income for the period .............................................................................................. Basic earnings per share in ISK .............................. Profit for the period .......................................................................................................... Profit before income tax (EBT) .......................................................................... Changes in value of investment property ................ Finance income ..................................................... Diluted earnings per share in ISK ........................... of cash flow hedges, net of income tax ................. Total other comprehensive (loss) income .......................................................................... Items that are or may be reclassified subsequently to profit or loss: Sale of goods and services .................................... Cost of goods sold ................................................. Other operating income ......................................... Margin from sale of goods and services ................................................................................................................ of a foreign associate ............................................ Finance costs ........................................................ Share of profit of associates .................................. Income tax ............................................................... and changes in fair value (EBITDA) ........................................................................................... Operating profit before finance items (EBIT) ........................................................................................... Foreign currency differences .................................
Page 5
Condensed Consolidated Interim Financial Statements 3 0 September 2025 5 Amounts are in thousands of ISK Consolidated Statement of Financial Position as at 30 September 2025 The notes on pages 8 to 17 are an integral part of these condensed financial statements. Notes 30.9.2025 31.12.2024 Assets 18.367.104 18.367.104 7.674.549 8.196.611 11 42.382.598 41.217.494 10.837.137 10.535.014 7.273.243 7.012.240 2.928.935 2.914.790 14.140 14.140 39.585 35.336 Non-current assets 89.517.291 88.292.729 14.346.520 14.117.878 5.633.064 7.167.970 1.327.607 1.180.705 6.811.286 4.075.358 Current assets 28.118.477 26.541.911 Total assets 117.635.768 114.834.640 Equity 12 310.143 311.254 9.352.238 9.803.982 19.389.594 18.258.010 17.044.650 15.119.951 Equity 46.096.625 43.493.197 Liabilities 13 26.175.067 29.339.934 14 10.314.558 10.001.415 8.715.696 7.763.839 Non-current liabilities 45.205.321 47.105.188 13 2.124.442 3.227.122 14 1.449.775 1.387.796 11.851.199 11.787.327 10.908.406 7.834.010 Current liabilities 26.333.822 24.236.255 Total liabilities 71.539.143 71.341.443 Total equity and liabilities 117.635.768 114.834.640 Goodwill ......................................................................................................... Other intangible assets .................................................................................. Share premium .............................................................................................. Property and equipment ................................................................................ Leased assets ............................................................................................... Investment property ........................................................................................ Shares in associates ..................................................................................... Shares in other companies ............................................................................ Long-term receivables ................................................................................... Inventories ..................................................................................................... Trade receivables .......................................................................................... Other short-term receivables ......................................................................... Cash and cash equivalents ........................................................................... Share capital .................................................................................................. Loans from credit institutions ......................................................................... Lease liabilities .............................................................................................. Trade payables .............................................................................................. Other short-term liabilities .............................................................................. Other restricted equity ................................................................................... Retained earnings ......................................................................................... Loans from credit institutions ......................................................................... Lease liabilities .............................................................................................. Deferred tax liability .......................................................................................
Page 6
Condensed Consolidated Interim Financial Statements 3 0 September 2025 6 Amounts are in thousands of ISK Consolidated Statement of Changes in Equity for the period from 1 January to 30 September 2025 The notes on pages 8 to 17 are an integral part of these condensed financial statements. Unrealised profit of Other Share Share Statutory Revaluation subsidiaries restricted Retained Total capital premium reserve reserve and associates accounts earnings equity 1 January to 30 September 2024 Equity 1.1.2024 ..................................................................................... 301.254 7.773.982 75.314 4.565.998 8.322.414 25.517)( 14.828.910 35.842.355 Profit for the period ............................................................................... 3.386.560 3.386.560 Total other comprehensive income ...................................................... 12.090 12.090 Restricted due to subsidiaries and associates .................................... 1.338.086 1.338.086)( 0 Dissolution of revaluation of an associate ........................................... 22.064)( 22.064 0 Dissolution of revaluation of property and equipment .......................... 127.205)( 127.205 0 301.254 7.773.982 75.314 4.416.729 9.660.500 13.427)( 17.026.653 39.241.005 Transactions with shareholders: Issued new share capital ...................................................................... 10.000 2.030.000 2.040.000 Share options ....................................................................................... 57.066 57.066 Dividend paid to shareholders (ISK 3 per share) .................................. 903.761)( 903.761)( Equity 30.9.2024 ................................................................................... 311.254 9.803.982 75.314 4.416.729 9.660.500 13.427)( 16.179.958 40.434.310 Total other restricted equity ................................................................. 14.139.116 1 January to 30 September 2025 Equity 1.1.2025 ..................................................................................... 311.254 9.803.982 77.814 6.834.403 11.405.001 59.208)( 15.119.951 43.493.197 Profit for the period ............................................................................... 4.349.402 4.349.402 Total other comprehensive income ...................................................... 17.929 17.929 Restricted due to subsidiaries and associates .................................... 1.277.157 1.277.157)( 0 Dissolution of revaluation of an associate ........................................... 35.034)( 35.034 0 Dissolution of revaluation of property and equipment .......................... 128.190)( 128.190 0 311.254 9.803.982 77.814 6.671.179 12.682.158 41.279)( 18.355.420 47.860.528 Transactions with shareholders: Purchase of own shares ....................................................................... 2.160)( 646.775)( 648.935)( Share options ....................................................................................... 89.594 89.594 Share options exercised ....................................................................... 1.049 195.031 196.080 Transferred from statutory reserve ....................................................... 278)( 278 0 Dividend paid to shareholders (ISK 4.50 per share) ............................. 1.400.642)( 1.400.642)( Equity 30.9.2025 ................................................................................... 310.143 9.352.238 77.536 6.671.179 12.682.158 41.279)( 17.044.650 46.096.625 Total other restricted equity .................................................................. 19.389.594 Other restricted equity
Page 7
Condensed Consolidated Interim Financial Statements 3 0 September 2025 7 Amounts are in thousands of ISK Consolidated Statement of Cash Flows for the period from 1 January to 30 September 2025 The notes on pages 8 to 17 are an integral part of these condensed financial statements. Notes 2025 2024 2025 2024 1.7.-30.9. 1.7.-30.9. 1.1.-30.9. 1.1.-30.9. Cash flows from operating activities Operating profit before depreciation, amortisation and changes 5.319.393 4.740.648 11.746.320 9.553.913 Operating items not affecting cash flows: 2.621)( 78.797)( 19.908)( 82.159)( 5.316.772 4.661.851 11.726.412 9.471.754 Changes in operating assets and liabilities: 30.539)( 221.738)( 228.642)( 76.998 943.317 612.690)( 1.543.611 950.783)( 1.290.505 1.659.087 3.921.686 2.070.774 2.203.283 824.659 5.236.655 1.196.989 26.529 39.694 84.164 115.699 767.117)( 820.927)( 2.309.587)( 2.369.441)( 115.412)( 62.143)( 461.650)( 171.373)( 6.664.055 4.643.134 14.275.994 8.243.628 Cash flows used in investing activities 91.246)( 213.326)( 559.116)( 609.818)( 11 1.090.867)( 1.004.356)( 3.547.970)( 2.293.529)( 24.796 169.405 72.718 204.616 9.396)( 26.659)( 157.651)( 37.625)( 0 42.341)( 0 42.341)( 0 0 500.586 298.238 0 4.141.321)( 0 4.141.321)( 400 1 4.517)( 99.486 1.166.313)( 5.258.597)( 3.695.950)( 6.522.294)( Cash flows used in financing activities 0 0 1.400.642)( 903.761)( 648.935)( 0 648.935)( 0 0 0 196.080 0 0 3.981.311 0 3.985.802 2.807.342)( 338.351)( 4.914.376)( 1.257.686)( 378.947)( 331.329)( 1.102.264)( 796.532)( 3.835.224)( 3.311.631 7.870.137)( 1.027.823 1.662.518 2.696.168 2.709.907 2.749.157 Foreign currency difference on cash and cash equivalents ................................................................................................................. 6.496 26.716)( 26.021 46.921)( 5.142.272 3.394.996 4.075.358 3.362.212 6.811.286 6.064.448 6.811.286 6.064.448 Investing and financing activities not affecting cash flows 0 2.040.000 0 2.040.000 0 2.040.000)( 0 2.040.000)( 0 2.279.719)( 0 2.279.719)( 0 2.279.719 0 2.279.719 15.853)( 439.566)( 1.477.386)( 1.448.909)( 15.853 439.566 1.477.386 1.448.909 Purchase of subsidiary, net of cash received .................................. Issued new share capital ................................................................. New long-term loans from credit institutions .................................... Repayment of long-term loans from credit institutions ................... Dividend received ........................................................................... Repayment of lease liabilities ......................................................... Purchase of subsidiary, net of cash received .................................. Purchase of own shares .................................................................. Income tax paid .............................................................................. Net cash from operating activities Purchased intangible assets .......................................................... Purchased property and equipment ............................................... Purchase of shares in other companies .......................................... Changes in operating assets and liabilities Gain on sale of property and equipment ...................................... in fair value (EBITDA) .................................................................. Trade and short-term receivables, decrease (increase) .............. Inventories, (increase) decrease ................................................. Trade and other short-term liabilities, increase ............................ New lease contracts and their remeasurement .............................. New lease liabilities and their remeasurement ................................ Interest received ............................................................................. Interest paid .................................................................................... New long-term loans from credit institutions .................................... Dividend paid ................................................................................... Share options exercised .................................................................. Net cash used in investing activities Sold property and equipment ......................................................... Purchase of investment properties ................................................. Cash and cash equivalents at the beginning of the period ................................................................................................................. Cash and cash equivalents at the end of the period ................................................................................................................. Increase in cash and cash equivalents ................................................................................................................. Repayment of long-term loans from credit institutions ................... Net cash used in financing activities Long-term receivables and securities, change ...............................
Page 8
Condensed Consolidated Interim Financial Statements 3 0 September 2025 8 Amounts are in thousands of ISK Notes to the Condensed Consolidated Interim Financial Statements 1. Reporting entity Festi hf. (the "Company" or “the Group” ) is an Icelandic public limited liability company incorporated and domiciled in Iceland. The Company's headquarters are located at Dalvegur 10 -14, Kópavogur, Iceland. The main business activities of the Company and its subsidiaries (together referred to as the "Group") consists of sale of fuel, goods and service s in service stations, groceries and related products, sale of medicines, sale of electronic equipment and leasing of properties. These Condensed Consolidated Interim Financial Statements of the Com pany as at and for the nine months ended 30 September 2025 comprise of the Company and its subsidiaries. The Company is listed on Nasdaq Iceland. 2. Basis of preparation The Condensed Consolidated Interim Financial Statements for the nine months ended 3 0 September 2025 have been prepared in accordance with International Accounting Standard IAS 34, Interim Financial Reporting, as adopted by the European Union and, as applicable, additional requirements of the Icelandic Financial Statements Act. The Condensed Consolidated Interim Financial Statements have been prepared under the historical cost convention, except for financial assets and liabilities, which are valued at fair value through Other Comprehensive Income and the Company's real estate leased to third parties are revalued to fair value. They do not include all the information required for a complete set of IFRS financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the last annual Consolidated Financial Statements as at and for the year ended 31 December 2024. The accounting policies and methods of computation applied in these Condensed Consolidated Interim Financial Statements are the same as those applied by the Group in its Consolidated Financial Statements as at and for the year ended 31 December 2024. The Condensed Consolidated Interim Financial Statements are prepared and presented in Icelandic krona (ISK), which is the Company's functional currency. All amounts are presented in thousands of Icelandic krona unless otherwise stated. The Board of Directors of Festi hf. approved the Condensed Consolidated Interim Financial Statements on 30 October 2025. 3. Use of estimates and judgements The preparation of the Condensed Consolidated Interim Financial Statements in conformity with IFRSs requires management to make judgements, estimates and assumptions, which affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. The significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were in all major matters the same as those applied to the Consolidated Financial Statements as at and for the year ended 31 December 2024. 4. New and revied IFRS's The accounting policies and methods of computation applied in these Condensed Consolidated Interim Financial Statements are the same as those applied by the Group in its Consolidated Financial Statements as at and for the year ended 31 December 2024. A few new standards are effective for annual periods beginning after 1 January 202 5 and earlier application is permitted; however, the Group has not early adopted the new or amended standards in preparing these Condensed Consolidated Interim Financial Statements as they are not considered to have significant impact on the Condensed Consolidated Interim Financial Statements.
Page 9
Condensed Consolidated Interim Financial Statements 3 0 September 2025 9 Amounts are in thousands of ISK Notes, continued: 5. Operating segments An operating segment is a component of the Group that engages in business activity from which it may earn revenue and incur expenses, including revenue and expenses relating to transactions with other segments of the Group. Segments are determined by the C ompany´s management, which regularly reviews the Group´s segments to decide upon how assets are allocated as well as to monitor their financial performance. Operating results of segments, their assets and liabilities consist of items directly attributable to individual segments as well as those items which can be allocated to them in a logical way. Capital expenditure of segments consists of the total cost of acquisition of operating and intangible assets. Transactions between segments are priced on an arm's length basis. The operating companies of ELKO, Krónan, Lyfja, N1 and Yrkir eignir are individual operating segments. The Group´s other entities comprise the sixth segment. That segment consists of the operations of the Parent Company Festi and Bakkinn Vöruhótel. The operations of Lyfja were included in the Group from July 2024. Reportable segments for the nine months ended 30 September 2025 Reportable segments for the nine months ended 30 September 2024 Other Segments ELKO Krónan Lyfja N1 Yrkir eignir companies total External revenue ..................................................... 14.524.378 57.854.072 14.449.033 42.588.489 450.568 254.361 130.120.901 Intra-group revenue ................................................. 12.759 1.376.987 302.814 376.708 2.897.921 4.563.825 9.531.014 Total segment revenue ............................................ 14.537.137 59.231.059 14.751.847 42.965.197 3.348.489 4.818.186 139.651.915 Operating profit before depreciation, amorti- sation and changes in value (EBITDA) .............. 1.246.134 4.594.529 1.198.183 4.951.246 2.639.140 1.366.566 15.995.798 Segment depreciation and amortisation .................. 533.208)( 1.834.333)( 817.391)( 2.345.067)( 1.578.358)( 672.323)( 7.780.680)( Changes in value of investment property ................ 0 0 0 0 103.352 0 103.352 Operating profit of segments (EBIT) ........................ 712.926 2.760.196 380.792 2.606.179 1.164.134 694.243 8.318.470 Net finance costs ..................................................... 100.371)( 200.708)( 101.695)( 462.779)( 1.201.920)( 1.450.914)( 3.518.387)( Share of profit of associates ................................... 0 0 0 0 0 524.388 524.388 Income tax ............................................................... 122.511)( 511.898)( 55.861)( 428.680)( 7.557 148.842 962.551)( Profit (loss) for the period ........................................ 490.044 2.047.590 223.236 1.714.720 30.229)( 83.441)( 4.361.920 30 September 2025 Segment assets ....................................................... 6.811.715 25.144.514 11.064.284 30.171.106 32.122.859 86.850.886 192.165.364 Segment capital expenditure ................................... 262.430 1.255.407 212.014 951.127 1.063.114 520.645 4.264.737 Segment liabilities ................................................... 4.730.539 19.148.077 5.215.382 18.757.691 24.127.383 39.289.038 111.268.110 Other Segments ELKO Krónan Lyfja N1 Yrkir eignir companies total External revenue ..................................................... 13.443.330 52.711.358 4.602.726 42.534.589 446.511 400.982 114.139.496 Intra-group revenue ................................................. 12.355 1.274.276 326.914 329.568 2.755.856 4.065.680 8.764.649 Total segment revenue ............................................ 13.455.685 53.985.634 4.929.640 42.864.157 3.202.367 4.466.662 122.904.145 Operating profit before depreciation, amorti- sation and changes in value (EBITDA) .............. 1.103.837 4.241.016 473.018 3.671.906 2.540.741 1.612.152 13.642.670 Segment depreciation and amortisation .................. 459.176)( 1.768.702)( 189.217)( 2.127.763)( 1.474.209)( 624.941)( 6.644.008)( Changes in value of investment property ................ 0 0 0 0 264.521 0 264.521 Operating profit of segments (EBIT) ........................ 644.661 2.472.314 283.801 1.544.143 1.331.053 987.211 7.263.183 Net finance costs ..................................................... 73.170)( 216.793)( 71.484)( 634.229)( 1.317.979)( 1.431.831)( 3.745.486)( Share of profit of associates ................................... 0 0 0 0 0 470.897 470.897 Income tax ............................................................... 120.493)( 474.709)( 27.595)( 191.005)( 2.745)( 89.303 727.244)( Profit for the period .................................................. 450.998 1.780.812 184.722 718.909 10.329 115.580 3.261.350 30 September 2024 Segment assets ....................................................... 6.615.093 23.549.102 11.636.563 29.501.094 31.745.560 79.921.336 182.968.748 Segment capital expenditure ................................... 381.161 747.823 102.583 1.161.650 251.351 331.595 2.976.163 Segment liabilities ................................................... 4.780.915 18.115.430 6.179.585 19.331.878 24.202.734 37.456.411 110.066.953
Page 10
Condensed Consolidated Interim Financial Statements 3 0 September 2025 10 Amounts are in thousands of ISK Notes, continued: 5. Operating segments, continued: Reconciliations of reportable segment revenues, profit or loss, assets and liabilities, and other material items in the Consolidated Statement of Comprehensive Income. According to 1.1.-30.9.2025 Segments financial total Eliminations statements 15.995.798 4.249.478)( 11.746.320 7.780.680)( 3.296.584 4.484.096)( 103.352 103.352 8.318.470 952.894)( 7.365.576 3.518.387)( 937.246 2.581.141)( 524.388 524.388 962.551)( 3.130 959.421)( 4.361.920 12.518)( 4.349.402 30 September 2025 192.165.364 74.529.596)( 117.635.768 4.264.737 4.264.737 111.268.110 39.728.967)( 71.539.143 1.1.-30.9.2024 13.642.670 4.088.757)( 9.553.913 6.644.008)( 3.160.491 3.483.517)( 264.521 264.521 7.263.183 928.266)( 6.334.917 3.745.486)( 1.084.778 2.660.708)( 470.897 470.897 727.244)( 31.302)( 758.546)( 3.261.350 125.210 3.386.560 30 September 2024 182.968.748 69.832.793)( 113.135.955 2.976.163 35.191)( 2.940.972 110.066.953 37.365.308)( 72.701.645 Changes in fair value of investment property ......................................... Operating profit before depreciation, amortisation and changes in fair value (EBITDA) ........................................................ Depreciation of property and equipment and leased assets and amortisation of intangible assets ............................................... and amortisation of intangible assets ............................................... Operating profit (EBIT) ........................................................................... Net finance costs .................................................................................... Share of profit of associates .................................................................. Income tax .............................................................................................. Profit for the period ................................................................................. Segment assets ...................................................................................... Segment capital expenditure .................................................................. Segment liabilities .................................................................................. Operating profit before depreciation, amortisation and changes in fair value (EBITDA) ........................................................ Depreciation of property and equipment and leased assets Segment assets ...................................................................................... Segment capital expenditure .................................................................. Segment liabilities .................................................................................. Changes in fair value of investment property ......................................... Operating profit (EBIT) ........................................................................... Net finance costs .................................................................................... Share of profit of associates .................................................................. Income tax .............................................................................................. Profit for the period .................................................................................
Page 11
Condensed Consolidated Interim Financial Statements 3 0 September 2025 11 Amounts are in thousands of ISK Notes, continued: 6. Operating income Sale of goods and services Sale of goods and services are recognised based on the fundamental principle of recognising revenue as or when control of goods and services are transferred to the customer. Income from lease of real estate Properties leased to parties outside the Group are recognised as investment properties. Investment propert ies are properties held to earn rentals or for capital appreciation or both. Investment properties are recognised at fair value. Fair value changes of investment properties are presented separately in profit or loss and therefore presented separately from lease income from those same assets. Other operating revenue Revenue from warehouse services, commissions, gain on sale of property and equipment, market grants and other income are presented in other operating income. 7. Margin from sale of goods and services Cost of goods sold consists of the purchase price as well as related transportation cost, excise tax, duties and distribution costs. Any decrease in the cost of inventories to net realisable value is expensed as part of cost of goods sold. Gross profit from sale of goods and services is specified as follows: Operating income is specified as follows: 2025 2024 2025 2024 1.7.-30.9. 1.7.-30.9. 1.1.-30.9. 1.1.-30.9. Sale of goods and services: 23.187.299 20.984.210 64.831.465 58.157.698 12.362.007 12.508.592 30.707.526 30.964.172 5.168.921 4.796.108 14.366.745 13.291.298 3.702.922 3.340.981 10.763.130 3.340.981 2.671.878 2.626.766 7.789.109 6.762.692 47.093.027 44.256.657 128.457.975 112.516.841 Other operating income: 210.325 204.727 627.007 563.757 71.383 103.893 236.823 315.264 134.155 121.199 394.017 355.874 2.621 78.797 19.908 82.159 126.304 79.320 385.171 305.601 544.788 587.936 1.662.926 1.622.655 47.637.815 44.844.593 130.120.901 114.139.496 Total operating revenue .......................................... Lease income from properties ................................ Warehouse services ............................................... Commissions .......................................................... Gain on sale of property and equipment ................ Other operating income .......................................... Total other operating income .................................. Convenience goods ................................................ Fuel and electricity .................................................. Electronic equipment .............................................. Other goods and services ....................................... Total sale of goods and services ............................ Prescription and over-the-counter medicine ........... 2025 2024 2025 2024 1.7.-30.9. 1.7.-30.9. 1.1.-30.9. 1.1.-30.9. 5.582.309 5.091.954 15.364.768 13.581.003 3.071.840 2.624.965 7.179.187 5.918.744 1.409.228 1.229.785 3.799.142 3.413.847 960.320 937.106 2.847.526 937.106 1.033.315 945.365 3.086.429 2.604.170 12.057.012 10.829.175 32.277.052 26.454.870 Other goods and services ........................................... Margin from sale of goods and services .................... Convenience goods .................................................... Fuel and electricity ...................................................... Electronic equipment .................................................. Prescription and over-the-counter medicine ...............
Page 12
Condensed Consolidated Interim Financial Statements 3 0 September 2025 12 Amounts are in thousands of ISK Notes, continued: 8. Salaries and other personnel expenses Salaries and other personnel expenses are specified as follows: 9. Other operating expenses Other operating expenses are specified as follows: 10. Finance income and finance costs 2025 2024 2025 2024 1.7.-30.9. 1.7.-30.9. 1.1.-30.9. 1.1.-30.9. 4.263.901 3.910.348 12.543.278 10.341.137 766.085 691.825 2.837.992 2.274.045 195.087 224.093 733.467 568.375 5.225.073 4.826.266 16.114.737 13.183.557 Other personnel expenses ......................................... Total salaries and other personnel expenses ............ Salaries ...................................................................... Salary-related expenses ............................................. 2025 2024 2025 2024 1.7.-30.9. 1.7.-30.9. 1.1.-30.9. 1.1.-30.9. 627.014 569.718 1.822.791 1.624.104 327.377 276.695 915.430 823.711 489.812 446.437 1.476.660 1.299.743 109.331 99.316 391.335 357.256 343.016 314.157 1.023.692 817.414 28.318 47.863 101.291 149.327 132.466 96.011 347.722 268.500 2.057.334 1.850.197 6.078.921 5.340.055 Other expenses ......................................................... Total other operating expenses ................................ Operating expenses of properties ............................. Maintenance expenses ............................................. Sales and marketing expenses ................................. Insurance and claims cost ........................................ Office and administrative expenses .......................... Communication expenses ......................................... 2025 2024 2025 2024 1.7.-30.9. 1.7.-30.9. 1.1.-30.9. 1.1.-30.9. 99.897 82.393 249.046 187.440 22.801 24.661 82.246 78.114 2.000 2.000 2.000 2.000 0 0 124.698 109.054 333.292 267.554 724.409 817.937 2.327.321 2.413.148 167.165 162.762 494.736 416.925 22.116 25.358 66.064 78.341 913.690 1.006.057 2.888.121 2.908.414 Interest income on receivables .................................. Total finance costs ..................................................... Dividend income ........................................................ Total finance income .................................................. Finance cost is specified as follows: Interest expense and CPI-index on loans .................. Finance income is specified as follows: Interest expense on lease liabilities ........................... Other interest expense ............................................... Interest income on cash and cash equivalents ..........
Page 13
Condensed Consolidated Interim Financial Statements 3 0 September 2025 13 Amounts are in thousands of ISK Notes, continued: 11. Operating assets Acquisition of operating assets in the first nine months of 2025 amounted to ISK 3,706 million (2024 9M: 2,294 million). Thereof investment in buildings is ISK 1,774 million (2024 9M: 934 million), interiors, equipment and tools was ISK 1,872 million (2024 9M: 1,256 million) and investment in computers and other IT hardware was ISK 60 million (2024 9M: 104 million). 12. Share options At the annual general meeting of Festi on 6 March 2024, two share option plans were approved, one for all permanent employees of the Group and the other for management. The Board of Directors decided to grant share options according to the specified share option plans at meetings on 23 April 2024, 30 October 2024, 29 April 2025 and 29 July 2025. The fair value of share options granted to employees is estimated using the Black-Scholes formula. The total cost of the options is estimated at ISK 316 million over their vesting period, of which ISK 90 million is expensed as salary cost during the first nine months of 2025. Movements of share options are specified as follows: Weighted average Nominal exercise price shares at 30.9.2025 12.981 1.697 1.049)( 1.340)( 12.289 209,3 Share options granted 2025.......................................................................................... Forfeited share options.................................................................................................. Shares outstanding at 30 September 2025 for vesting in the coming years................. Shares outstanding at 31 December 2024 for vesting in the coming years.................. Share options exercised................................................................................................ Share options granted: Weighted average Nominal exercise price shares at 30.9.2025 4.181 203,7 4.298 208,2 1.635 208,2 1.635 208,2 90 308,5 270 237,9 90 308,5 90 308,5 12.289 209,3 100% exercisable in May 2026...................................................................................... 100% exercisable in May 2027...................................................................................... 100% exercisable in November 2027............................................................................ 100% exercisable in May 2028...................................................................................... 100% exercisable in August 2029................................................................................. 100% exercisable in February 2029.............................................................................. 100% exercisable in November 2028............................................................................ 100% exercisable in August 2028.................................................................................
Page 14
Condensed Consolidated Interim Financial Statements 3 0 September 2025 14 Amounts are in thousands of ISK Notes, continued: 13. Loans from credit institutions All loans from credit institutions are denominated in Icelandic krona. The loans are secured by pledge in real estate and inventories. The loans are specified as follows: As of 30 September 2025, the Group had undrawn credit lines in the amount of ISK 500 million. 2025 2024 1.1.-30.9. 1.1.-31.12. Long-term loans 29.339.934 26.680.829 4.914.376)( 2.083.084)( 0 3.985.802 0 1.563.782 43.926 18.566 602.903 594.147 1.102.680 1.420.108)( 26.175.067 29.339.934 Short-term loans 2.124.442 3.227.122 2.124.442 3.227.122 28.299.509 32.567.056 2025 2024 30.9.2025 31.12.2024 9,6% 10,8% 12.483.350 15.407.277 5,0% 4,7% 15.816.159 17.159.779 28.299.509 32.567.056 The maturities of the loans are specified as follows: 734.567 3.227.122 2.124.290 2.275.502 2.125.046 2.275.718 1.925.295 2.075.511 1.726.228 1.876.444 1.726.411 1.876.627 17.937.672 18.960.132 28.299.509 32.567.056 Balance at the beginning of the year ..................................................................................... Repayments .......................................................................................................................... Outstanding amounts at New loans.............................................................................................................................. Expensed borrowing costs..................................................................................................... CPI-indexation........................................................................................................................ Change in current portion....................................................................................................... Balance at the end of the period............................................................................................ Current portion of long-term loans ........................................................................................ Taken over on acquisition of subsidiiary................................................................................ Year 2026 .............................................................................................................................. Year 2027 .............................................................................................................................. Year 2028 .............................................................................................................................. Year 2029 .............................................................................................................................. Due for payment onwards ..................................................................................................... Total loans from credit institutions ......................................................................................... Year 2030 .............................................................................................................................. Year 2025 .............................................................................................................................. Balance at the end of the period............................................................................................ Total loans from credit institutions ......................................................................................... Weighted average interest rates Non-indexed loans at floating interest rates ......... CPI-indexed loans at floating interest rates .......... Total loans from credit institutions .........................................................................................
Page 15
Condensed Consolidated Interim Financial Statements 3 0 September 2025 15 Amounts are in thousands of ISK Notes, continued: 14. Lease liabilities All lease liabilities are denominated in Icelandic krona. 2025 2024 1.1.-30.9. 1.1.-31.12. 11.389.211 8.652.596 1.305.948 797.325 0 2.275.544 171.438 822.301 1.102.264)( 1.158.555)( 11.764.333 11.389.211 1.449.775)( 1.387.796)( 10.314.558 10.001.415 The maturity analysis of lease liabilities is specified as follows: 362.441 1.387.796 1.424.211 1.376.195 1.222.236 1.299.119 964.202 1.051.443 807.993 730.951 772.921 649.432 6.210.329 4.894.275 11.764.333 11.389.211 2025 2024 1.1.-30.9. 1.1.-30.9. Impact of lease liabilities in profit or loss are as follows: 1.173.978 894.156 494.736 416.925 Expensed rent due to lease agreements not capitalised: 262.366 249.731 11.823 13.036 Impact of rental agreements on Statement of Cash Flows: 1.597.000 1.209.995 Current portion................................................................................................................. Total non-current portion of lease liabilities..................................................................... Carrying amount at the beginning of the year................................................................. New lease contracts........................................................................................................ Taken over on acquisition of subsidiary ......................................................................... Year 2025 ....................................................................................................................... Year 2026 ....................................................................................................................... Increase due to indexation of lease payments................................................................ Payments due to lease contracts.................................................................................... Deprecation of lease assets............................................................................................ Interest expensed on lease liabilities............................................................................... Year 2027 ....................................................................................................................... Year 2028 ....................................................................................................................... Year 2029 ....................................................................................................................... Due for payment onwards............................................................................................... Total................................................................................................................................. Year 2030 ....................................................................................................................... Real estate rent............................................................................................................... Other rent payments........................................................................................................ Payment of lease liabilities during the year..................................................................... Total lease liabilities........................................................................................................
Page 16
Condensed Consolidated Interim Financial Statements 3 0 September 2025 16 Amounts are in thousands of ISK Notes, continued: 15. Group entities The Condensed Consolidated Interim Financial Statements include the following entities. All subsidiaries are directly or indirectly fully owned by the Parent Company, Festi. Company Business activity Festi hf. Festi is a holding company that specialises in operating companies that are leading in the retail and fuel sale in Iceland. Festi's role is to support its operating companies in fulfilling customers´ demands so as to enable them to continue to be at the forefront in providing goods and services across the country. Festi provides its subsidiaries with supporting services, among other things in the area of finance, operations and business development. Bakkinn vöruhótel ehf. Bakkinn vöruhótel specialises in product storage, packaging, labelling, handling and distribution of products for customers that elect to outsource their warehouse activities. ELKO ehf. ELKO specialises in selling household appliances and electronic equipment. The company operates stores in the capital region, Akureyri and at the Leifur Eiríksson International Airport in Keflavik, as well as an online shop. Krónan ehf. Krónan is a retail company that operates convenience stores in Iceland. The company operates stores throughout the country under the brand name of Krónan and Smart shop with home deliveries. Icelandic Food Company ehf. Icelandic Food Company sepcialises in production of convenience goods sold in Krónan and N1. Vínportið ehf. Vínportið specialises in imports and wholesales of alcohol to ÁTVR stores and to hotels and restaurants. Lyfja hf. Lyfja specialises in pharmacy operations as well as wholesale and retail sales of health-related products. The company operates 45 pharmacies and branches as well as an online store and app. Heilsa ehf. Heilsa specilises in imports and wholesales of pharmacy products and cosmetic and health releated products sold in stores all arround the country. Mengi ehf. Mengi leases non-residential real estate to retail companies. N1 ehf. N1 specialises in wholesale and retail of fuel, operation of service stations, including tire and lubrication service stations around the country. The Company’s service stations sell fuel in addition to refreshments, sale of various convenience goods, purchases of electricity in the wholesale market and the retail sale to individuals and companies in Iceland. Yrkir eignir ehf. Yrkir eignir runs the property operations of the Group and leases out non-residential buildings to retail companies, both within and outside the Group. The company also operates the security and development departments, which run projects related to security matters, maintenance of properties and their development with the objective of profitability.
Page 17
Condensed Consolidated Interim Financial Statements 3 0 September 2025 17 Amounts are in thousands of ISK Notes, continued: 16. Other matters Sales process for the shares of the Company in Olíudreifing On 26 September 2024 it was announced that Festi and Olís had reached an agreement to initiate the preparation of the sales process of the ir shares in Olíudreifing, whereas 60% of Olíudreifing is owned by Festi and 40% by Olís. On 3 December 2024 it was announced that non -binding offers had been received for all shares in Olíudreifing and that a decision had been made to invite three parties t o continue in the sales process and provide them with access to further information. On 30 April 2025 it was announc ed that both Festi and Olís had decided to terminate the sale process as it was apparent that an agreement could not be reached. The formal sale process of the shares is therefore discontinued. Summons from Bergorka ehf. received Festi received a letter from Bergorka on 5. September 2025, where the Company is summoned for recognition of liability for compensation, without a specified amount, for alleged violations dating back to December 2018. Bergorka claims that Festi violated Article 3 of the settlement agreement between Festi and the Icelandic Competition Authority dated 30 July 2018. It is Festi’s assessment that Bergorka’s lawsuit is unfounded. The Company has therefore filed a statement of defence before the District Court of Reykjanes on 10 September 2025. 17. Financial ratios The Group's key financial ratios 2025 2024 Operations 1.1.-30.9. 1.1.-30.9. 8,9 8,4 Average balance of trade receivables during the period / 10,9 12,3 36,4% 36,1% 49,9% 49,8% 18,8% 20,2% 30.9.2025 31.12.2024 Financial position 1,07 1,10 0,52 0,51 1,46 2,28 39,2% 37,9% 11,5% 10,5% EBITDA / margin from sales of goods and services.............................................................. Turnover rate of inventories Utilisation of goods / average balance of inventories during the period ........................... Sales days in trade receivables: goods and services sold ............................................................................................. Return on equity: profit for last 12 months / average balance of equity................................. Salaries and personnel expenses / margin from sales of goods and services...................... Other operating expenses / margin from sales of goods and services.................................. Current ratio: current assets / current liabilities..................................................................... Liquidity ratio: (current assets - inventories) / current liabilities............................................. Leverage: net interest bearing liabilities excluding lease liabilities / EBITDA last 12 months Equity ratio: equity / total capital............................................................................................