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Press release June 25th , 2021 hagar Increased sales in Q1 and improved profitability between years Hagar's results for the 1st quarter 2021/22 The Consolidated Interim Financial Statements of Hagar plc . for the first quarter of 2021/22 were approved by the company's board of directors and the CEO at a board meeting on June 25th 2021. The statements cover the period March 1st to May 31st 2021. The consolidated interim financial statements include the consolidated financial statements of the company and its subsidiaries and are prepared according to International Financial Reporting Standards ( IFRS ) . The statements have neither been reviewed nor audited by the company's auditors , PricewaterhouseCoopers ehf . Key figures • Sales in Q1 amounted to 32,034 m . ISK . ( 2020/21 : 28,241 m . ISK . ) . • Gross margin in Q1 was 21.4 % ( 2020/21 : 20.6 % ) . • Earnings before interest , depreciation and taxes ( EBITDA ) in Q1 amounted to 2,278 m.ISK . ( 2020/21 : 1,297 m.ISK . ) Profit in Q1 amounted to 727 m.ISK . or 2,3 % of sales ( 2020/21 : loss of 96 m.ISK . and -0,3 % of sales ) . • Earnings per share in Q1 were 0.63 ISK . ( 2020/21 : loss of 0.08 ISK . ) . • Equity amounted to 25,906 m.ISK . at the end of the period and the equity ratio was 41.2 % ( Year end 2020/21 : 25,187 m.ISK . and 40.9 % ) . • Management's guidance for the operating year 2021/22 assumes that EBITDA will be 8,600- 9,100 m.ISK . Operational key points • Successful first quarter with increased sales and gross margin in all the group's operational sections . • Comparison of results between years is favourable , but previous year is marked by negative effect of the Icelandic króna's rate of exchange and fall in world oil prices due to the COVID - 19 pandemic . • The COVID - 19 effects are still being felt , and activities in Q1 are partly affected by the authorities ' disease control measures to limit the consequences of the pandemic . The number of units sold in grocery stores decreases slightly in Q1 , but customer visits are now rising again , or by almost 12 % between years . The average basket size has now decreased just over 4 % . • Large sales increase and margin growth at Olís after a difficult Q1 last year . Volume increase in fuel litres 30 % between years . • Settlement for the sale of Reykjavíkur Apótek is completed and the company has been handed over to new owners . Effect on Q1's results is positive in the income statement . • Útilíf to be handed over to new owners in Q2 , but all reservations regarding the purchase have been lifted . • Hagar bought a half share of Djús ehf . , which owns and operates Lemon restaurants . Awaiting approval of the Competition Authority . 1