Hagar hf. Raises Full-Year Guidance Following Strong Second-Quarter Sales Growth
Icelandic retailer Hagar hf. (OMXICE:HAGA) reported a 5.5% increase in second-quarter sales to 54.68 billion ISK for the period ending August 31, 2026. Quarterly profit reached 2.29 billion ISK, while earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to 5.67 billion ISK. Following stronger-than-expected first-half results across its core grocery and fuel divisions, executive management raised the company's full-year EBITDA outlook by 800 million ISK to a range between 19.6 billion ISK and 20.1 billion ISK.
The quarter was anchored by grocery growth at retail chain Bónus and cost-control measures at Hagkaup, helping push Icelandic store and warehouse EBITDA up 17.1%. Increased customer foot traffic and new supply arrangements helped lower retail purchasing costs, enabling temporary 2% price cuts on roughly 1,000 products. Although fuel subsidiary Olís experienced an 11.1% decline in overall volume due to reduced industrial and aviation demand, retail fuel volume expanded and non-fuel operations generated higher earnings. Additionally, operations in the Faroe Islands under SMS recorded an 8.7% revenue gain.
Investors should monitor how international oil market volatility and supply chain costs impact fuel profitability and retail transportation expenses in coming quarters. Market participants should also watch the effect of temporary retail price reductions locked through year-end, as well as potential developments from Hagar's share buyback initiatives after repurchasing 1,000 million ISK in equity during the second quarter. An investor presentation is scheduled for October 16, 2026.
Key points
- Hagar hf. reported second-quarter sales of 54.68 billion ISK, representing a 5.5% increase year-on-year.
- Full-year EBITDA guidance was raised by 800 million ISK to between 19.6 billion ISK and 20.1 billion ISK.
- EBITDA for stores and warehouses in Iceland grew 17.1% during the quarter despite store renovations and closures.
- Overall fuel sales volume fell 11.1% due to lower aviation demand, but retail fuel sales volume increased.
- Hagar repurchased 1.0 billion ISK of its own shares under two buyback programs launched during Q2.
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What were Hagar hf. sales in Q2 2026/27?
Sales for the quarter reached 54,683 million ISK, a 5.5% increase compared to the same period in the previous year.
Why did Hagar hf. raise its earnings guidance?
Management raised full-year EBITDA guidance by 800 million ISK after first-half results exceeded expectations across store and fuel divisions.
How did fuel sales perform at Hagar in Q2?
Total fuel volumes declined 11.1% due to lower industrial and aviation sales, though retail fuel volumes grew.