Festi hf.: Consolidated Annual Report 2021

By mcghee - February 14, 2022

[PRESS RELEASE] February 9 2022:

Profit 1,354 million in Q4 2021

Main results

  • Margin from sale of goods and services was ISK 6,522 million compared to ISK 5,372 million in Q4 2020, increase of 21.4% YoY.
  • EBITDA was ISK 2,809 million compared to ISK 1,746 million in Q4 2020, increase of 60.8% YoY.
  • Gross margin from sales was 24.7% in Q4 2021 compared to 23.4% in Q4 2020.
  • Profit from sales of assets amounted to ISK 276 million in Q4 2021.
  • Profit in Q4 2021 was ISK 1,354 million in Q4 2021 compared to ISK 526 million Q4 2020.
  • Equity was ISK 33,910 million and equity ratio 39.4% at year-end 2021 compared to 35.7% at year-end 2020.
  • Net interest-bearing debt without lease liabilities ISK 23,309 million at year-end 2021 compared to ISK 29,986 million at year-end 2020, a decrease of ISK 6,677 million between years.

Eggert Þór Kristófersson, CEO of Festi:

“The operations of year 2021 was very good for Festi as all companies of the group showed their best ever operating results.”

The projects of recent operating year were many but the ones that stand out are Festi’s carbon sequestration project, digital development in service solutions, N1’s contributions to the energy transition in transport with a new company and the implementation of the group’s welfare package intended to help improve mental and physical health of its employees.

Festi‘s carbon sequestration project – carbon balance all emissions within the group
Among major projects within Festi was the registration of the first carbon sequestration project in the Icelandic Climate Registry fulfilling requirements set by Skógræktin’s (Icelandic Forest Service) Forestry Program. By doing so, Festi took an important major step towards increased sustainability and responsible carbon offsetting. The project will be certified by an independent body and has now been pre-registered in the Climate Registry. Festi will therefore responsibly carbon balance all emissions within the group that cannot be prevented. The group plans to plant over 500,000 trees with new forestry in this first project over the coming three years. Likewise, we estimate over the next 50 years, Festi’s carbon sequestration will amount to 90,000 metric tons of CO2, which is more than all expected emissions from Festi and its operating units during the same period. Festi owns 250 hectares of land by Fjarðarhorn in Hrútafjörður which will be used for this project and planting is scheduled to start in spring of 2022. Sustainability and care for the environment is becoming increasingly important within our operations and we look forward to starting this important journey towards greater sustainability.

Digital service channels – to simplify customers’ lives
The operating year also marked a strong emphasis on digital development within the company, where the goal is to simplify customers’ lives. Firstly, good reception of Krónan, ELKO and N1 online stores, and N1’s collaboration with the last-mile delivery service company Dropp came very handy during the year alongside the increased need for last-mile delivery solutions. Krónan’s new checkout solution through the Smart Store app, Scan and go, was also launched during the operating year. With the app, customers can scan products directly in a cart or bag with their phone and pay with the app, without stopping by at the checkout counter. The solution has been very well received in Krónan Lindum, Krónan Akrabraut in and in Krónan Grandi, and Krónan aims to make the solution available in all stores in the coming operating year.

N1 Rafmagn – Our participation in the energy transition in transport
In line with increased emphasis on the energy transition in transport, N1 has gone through measures contributing to the company’s continued operations following shifting focus of oil companies. At the end of the recent operating year the name of Íslensk Orkumiðlun, which is owned by N1, was changed to N1 Rafmagn (e. N1 Elecricity). N1 Rafmagn offers competitive electricity prices to households and businesses as well as handling N1’s ever expanding electric charging network. During the recent operating year, Iceland’s largest electric charging station opened at N1’s service station Staðarskáli where the goal is to increase services to electric car owners, ease travels in electric cars around the country and promote infrastructure development due to the energy transition. N1’s increased emphasis on electric charging stations at service stations is a part an effort to increase supply of renewable and green energy in line with the company’s future energy policy.

Teamwork and wellbeing are crucial – a welfare package for our staff
To be successful, a strong and coherent team is needed, and we are very grateful for our staff and their contributions. The group’s employees played a major role in the recent operating year, ensuring outstanding service and costumer experience despite challenging conditions during a global pandemic.

The wellbeing of our employees is crucial, and our goal is for them to feel good, both at work and outside it. During the recent operating year, we put together a welfare package for Festi and its operating companies which goal is to improve mental and physical health of our employees. The contents of our welfare package are multifaceted and offers various grants, our staff can receive sports grants, psychological assistance grants or welfare service such as lifestyle, physiotherapy, social, nutritional, marital, parenting, family and bullying counselling. We encourage our staff to use this welfare package frequently and it has been very well received.

A bright future ahead
The company has a lot to offer and is very capable of addressing the challenges it now faces in the wake of the COVID-19 pandemic and other external factors. The company has not been spared from increased inflation, price increases in imported and domestic products and possible shortage of goods in some quantities. However, the finances are strong, outlook is very good, and the company is well equipped to handle tasks ahead.

Many exciting projects await us in upcoming months, amongst them are openings of new stores, both ELKO and Krónan are opening stores in Skeifan. Krónan is also opening a store in Borgartún in the coming months and in Akureyri next autumn. Development of N1 car service in Keflavík will be started this year and in the coming months the same will go for N1 in Akranes where a new service station will be constructed along with facilities for car service. Great emphasis will be on implementing digital solutions for the company’s internal processes in the current operating year which are aimed to increase optimizations and communications between business units. Implementation of a new communication and educational solution, which will both be available through an app and the web, has been ongoing for quite some time. The solution will be tailored to each business unit where the goal is to encourage efficient education and training of staff, promote bilateral communication and increase the flow of information within the company. The app was launched in the beginning of the current operating year, and it will be exciting to watch the development and reception within the company. Likewise, a new payment app will see the light of day in the coming months where costumers will be able, amongst other things, to pay for electricity at charging station. This new solution is intended to be revolutionizing regarding servicing for electric car owners.

Many great opportunities lie within the business in the coming operating year. Festi and the operating units, N1, Krónan, ELKO and Bakkinn will continue to attend to customers’ needs and wishes in an outstanding way where active conversation is highly crucial” says Eggert Þór Kristófersson, CEO of Festi.

The original press release can be found at GlobeNewswire.com.