Festi earnings fell in the third quarter of 2026 even as sales rose, with the Icelandic group reporting pressure on fuel margins and weaker consumer electronics demand. The company maintained its full-year EBITDA guidance.

Key Takeaways

  • Quarterly sales rose 8.6% year over year, while profit fell 12.9%.
  • Fuel and electricity sales margins declined by ISK 622 million from a year earlier.
  • Festi kept its 2026 EBITDA guidance at ISK 16.0 billion to ISK 16.5 billion.

Festi earnings and sales margins

Sales of goods and services reached ISK 51,147 million in the quarter, while profit was ISK 2,309 million. EBITDA fell 6.2% year over year to ISK 4,988 million.

The sales margin was 23.3%, down 2.3 percentage points from a year earlier. Excluding the effects of exchange rates, fuel prices and public levies on fuel, the decline was 0.8 percentage points.

CEO Ásta S. Fjeldsted said fuel margins remained under pressure because Festi had limited scope to raise selling prices enough to offset higher procurement costs. She also cited fewer tourist arrivals and weaker consumer electronics demand as pressures on the group. Electronics sales margin fell 3.5%.

Grocery growth and financial position

The Krónan grocery business reported quarterly EBITDA of ISK 2,091 million, up 15.1% year over year. In-store transactions rose 4.4%, while online transactions increased 34.3%.

Group cash flow from operating activities was ISK 4,839 million, down ISK 1,825 million from a year earlier. Net interest-bearing debt, including lease liabilities, reached ISK 39,892 million, up ISK 6,945 million from the end of 2025. Festi attributed the increase primarily to higher working capital needs associated with fuel prices, as well as investments, share buybacks and a first-half dividend.

During the quarter, Festi completed its purchases of Skjáauglýsingar and the remaining 30% of Local for ISK 564 million net of cash acquired. Up to ISK 300 million in additional consideration depends on Skjáauglýsingar’s performance in 2027 and 2028. Both businesses will be included in consolidated accounts from October 1, 2026.

Full-year outlook

Fjeldsted said the fourth-quarter outlook was positive and that all business units except Lyfja were expected to improve earnings. She said Lyfja remained under pressure from rising costs and regulated, fixed medicine mark-ups.

Festi has scheduled a results presentation for October 29, 2026, at 8:30 a.m. GMT, when Fjeldsted and CFO Magnús Kr. Ingason will discuss the results and answer questions.

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