Hagar hf: Financial results for Q2 2026/27
Strong results and management’s guidance raised – lower prices for customers
The interim financial statements of Hagar hf. for the second quarter of the 2026/27 financial year were approved by the company’s Board of Directors and CEO at a board meeting held on 15 October 2026. The statements cover the period from 1 March to 31 August 2026. The interim financial statements include the consolidated accounts of the company and its subsidiaries and have been prepared in accordance with International Financial Reporting Standards (IFRS). The statements have been reviewed by the company’s auditors, PricewaterhouseCoopers ehf.
Key figures
- Sales in Q2 amounted to 54,683 m.ISK (5.5% increase from Q2 2025/26). Sales in 6M amounted to 105,468 m.ISK (5.5% growth from 6M 2025/26). [Q2 2025/26: 51,817 m.ISK, 6M 2025/26: 99,932 m.ISK]
- Gross profit Q2 amounted to 13,514 m.ISK (24.7%) and 26,795 m.ISK (25.4%) for 6M. [Q2 2025/26: 12,874 m.ISK (24.8%), 6M 2025/26: 24,493 m.ISK (24.5%)]
- Earnings before interest, taxes, depreciation, and amortization (EBITDA) Q2 amounted to 5,666 m.ISK or 10.4% of sales. EBITDA 6M amounted to 10,802 m.ISK or 10.2% of sales. [Q2 2025/26: 5,485 m.ISK (10.6%), 6M 2025/26: 9,531 m.ISK (9.5%)]
- Profit for Q2 amounted to 2,290 m.ISK or 4.2% of sales. Profit for 6M amounted to 4,207 m.ISK or 4.0% of sales. [Q2 2025/26: 2,556 m.ISK (4.9%), 6M 2025/26: 3,721 m.ISK (3.7%)]
- Comprehensive income for Q2 amounted to 2,122 m.ISK and 4,133 m.ISK for 6M. [Q2 2025/26: 2,452 m.ISK, 6M 2025/26: 3,641]
- Basic earnings per share in Q2 was 2.11 ISK and 3.88 ISK for 6M. [Q2 2025/26: 2.33 ISK, 6M 2025/26: 3.39 ISK]. Diluted earnings per share in Q2 was 2.09 ISK and 3.85 ISK for 6M. [Q2 2025/26: 2.32 ISK, 6M 2025/26: 3.37 ISK]
- Equity amounted to 42,926 m.ISK at the end of the period and equity ratio was 36.4%. [Year end 2025/26: 42,779 m.ISK and 37.1%]
- Management’s guidance for financial year 2026/27 was raised by 800 m.ISK in conjunction with the publication of Q2 and assumes that EBITDA will be 19,600-20,100 m.ISK
Operational highlights
- Q2 performance exceeded expectations, with strong results across all business segments – management’s EBITDA guidance raised by ISK 800 million
- The positive impact on Olís’ Q1 profitability, resulting from sales to industries and rising global oil prices, partly reversed in Q2, although to a lesser extent than anticipated
- Customer visits to grocery stores in Iceland increased by 3.2%, while units sold rose by 1.3% – a slight decline at Hagkaup, but solid growth at Bónus, despite the temporary closure of the Egilsstaðir store
- Fuel volumes sold declined by 11.1% YoY in Q2, due to lower sales to industries, particularly aviation fuel – retail fuel volumes increased YoY
- SMS in the Faroe Islands continued to perform well, with customer visits increasing by 2.8% in Q2, accompanied by solid sales growth and improved profitability
- Around 650 new Salling products introduced in Bónus and Hagkaup stores during the year – priced approx. 15% below comparable existing products
- Strong earnings growth in stores and warehouses in Iceland – EBITDA up 17.1% in Q2 and by 16.0% in the first half of the year
- In September, Hagar announced a 2% price cut on nearly 1,000 products at Bónus and Hagkaup, through year-end – an important contribution to fighting food price inflation
- Two share buyback programs were launched during Q2, with total repurchases of ISK 1,000 million – strong operating performance provides capacity for further share buybacks
Finnur Oddsson, CEO:
Hagar’s operations performed well during the summer months, and results for the first half of the 2026/27 financial year exceeded management’s expectations. The Group’s sales in the second quarter amounted to ISK 54.7 billion, an increase of 5.5% year-on-year. EBITDA amounted to ISK 5.7 billion and profit for the period totaled ISK 2.3 billion. During the first six months of the financial year, sales increased by 5.5% and EBITDA by 13.3%, reaching ISK 10.8 billion. Operations performed well across all business segments, both in Iceland and the Faroe Islands, although the results continued to be affected by international conflicts and unusual conditions in global oil markets. First-half results exceeded expectations, and management has therefore raised its EBITDA guidance for the financial year by ISK 800 million to ISK 19,600 – 20,100 million.
The operations of Stores and Warehouses – Iceland performed well during the quarter. Revenue increased by 5.8% to approximately ISK 36.4 billion, while the segment’s EBITDA increased by 17.1% year-on-year. Customer visits to grocery stores increased by 3.2%, while the number of units sold rose by 1.3%. Bónus continued to deliver strong results, with increased sales, more customer visits and higher volumes sold. It is particularly encouraging to see increased sales of fruit and vegetables, reflecting our focus on a broader product range, quality and affordable prices. Customers have also responded positively to store improvements, including the refurbishment of the Bónus store in Selfoss. Hagkaup continued to focus on its broad product selection, product innovation and enhanced customer service. At the same time, initiatives to reduce shrinkage and other operating costs have delivered lasting improvements in operational efficiency and profitability.
Hagar’s purchasing partnership with Salling Group is now delivering significant benefits to customers. Approximately 650 new products have been introduced to the shelves of Bónus and Hagkaup stores during the year, at prices averaging more than 15% below those of comparable products previously available. More efficient purchasing enables us to offer customers lower prices while also improving gross margins and profitability in our stores. The partnership has also contributed to greater price discipline across the grocery market, which we believe is among the factors supporting favorable developments in food prices in recent months. According to consumer price index data, food prices in Iceland have increased by less than 1% over the past six months, well below the overall rate of inflation. In September, we took further steps when Bónus and Hagkaup reduced prices by more than 2% on approximately 1,000 products, representing a large proportion of Hagar’s directly imported product range, with a commitment not to increase these prices before the end of the year. Further price reductions remain possible in line with potential price decreases from suppliers.
The performance of Aðföng and Bananar continued to reflect the strong operations of the Group’s grocery retail business. Stórkaup continues to make good progress and is delivering positive operating results following an extensive development phase. Revenue growth remains strong, particularly in food sales, which increased by approximately 60%. We expect the company to continue delivering profitable growth and to become an increasingly important driver of growth in the coming periods. Other Group businesses, including Eldum rétt and Zara, also performed well.
Olís performed well during the quarter, exceeding management’s expectations. As reported in the first quarter’s results, the rapid increase in global oil prices had an unusually positive impact on earnings from sales to industries. These effects partially reversed in the second quarter, although to a lesser extent than anticipated. Olís’ revenue increased by 3.3% during the quarter despite the abolition of fuel duties at the beginning of the calendar year, which has a downward effect on reported revenue. This was offset by a substantial year-on-year increase in global oil prices. Fuel volumes sold declined by 11.1%, among other factors, due to lower aviation fuel sales related to military exercises, although these sales make a limited contribution to gross profit. At the same time, retail fuel sales volumes increased moderately year-on-year. Sales of non-fuel products and services continued to perform well, with their contribution to Olís’ earnings increasing significantly in recent periods, representing an annualized improvement of hundreds of millions ISK. New service initiatives, including the partnership with Kaffitár, further development of the Grill 66 offering and car wash services, support continued growth and improved profitability.
SMS operations in the Faroe Islands performed well during the quarter, with revenue increasing by 8.7% and EBITDA growing by 13% year-on-year. Customer visits increased by 2.8%, and results exceeded expectations. Renovations at several Bónus stores, including in Klaksvík and Tórshavn, temporarily affected sales but will improve store facilities and customer service over the longer term.
The development of new services within Hagar continues to progress well. Members in the Takk loyalty program continue to grow, while new features provide customers with more opportunities to enjoy better value and earn Takk krónur. The development of Hagar Media’s infrastructure is also progressing well, with the rollout of digital screens across stores well advanced in relation to our targets. Hagar Media’s customers have responded positively to its new range of products and services. These initiatives build on the Group’s strong infrastructure and create opportunities for improved customer service and new revenue streams.
Despite the strong first-half results, uncertainty remains in Hagar’s operating environment. Armed conflicts and tensions in international markets have caused significant volatility in global oil prices, which have remained elevated, while concerns are growing over further disruptions to fuel supply chains. High oil prices and uncertainty surrounding supply also affect transportation costs, raw material prices and other inputs for grocery retail, increasing pressure on food prices. Inflation in Iceland has risen again, although the agreement to extend collective wage agreements by just over one year is a positive development. We hope this will contribute to greater stability and create more favorable conditions for inflation to ease and interest rates to decline in the coming periods.
Our focus will remain on efficient procurement and keeping prices low for Icelandic households. The progress achieved in recent months through our purchasing partnership with Salling Group and targeted price reductions at Bónus and Hagkaup demonstrates what can be accomplished through effective purchasing and efficient operations, and how lower prices for customers and strong business performance can go hand in hand. These achievements are made possible by the outstanding employees of Hagar and its subsidiaries, who work every day to make shopping more affordable, easier and more enjoyable. The Group’s core businesses continue to perform well, our financial position remains strong, and there are opportunities for further growth. We expect operations to remain strong, and the upward revision to our earnings guidance reflects our confidence that Hagar is well positioned to deliver increased value to both customers and shareholders in the coming periods.
Investor meeting on Friday, 16 October 2026
A presentation meeting for investors and market participants will be held at Hótel Reykjavík Grand, Sigtúni 28, Reykjavík, on Friday, 16 October 2026, at 8:30 a.m. At the meeting, Finnur Oddsson, CEO, and Guðrún Eva Gunnarsdóttir, CFO, will present the company’s operations and financial performance and answer questions.
The meeting will also be live-streamed, and registration for the stream is available at: https://www.hagar.is/skraning.
Presentation materials will be made available in Icelandic on Hagar’s website, www.hagar.is, at the start of the meeting. Presentation materials will be available in English on 19 October at https://www.hagar.is/en/.
For further information, please contact Finnur Oddsson, CEO (fo@hagar.is), and Guðrún Eva Gunnarsdóttir, CFO (geg@hagar.is), by telephone 530-5500 or email.
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