AI assistant
Hagar — Interim / Quarterly Report 2016
Jan 12, 2016
2196_rns_2016-01-12_499e57b3-7e76-4a3d-b0c1-5b749237c509.pdf
Interim / Quarterly Report
Open in viewerOpens in your device viewer
Hagar hf.
Condensed Consolidated Interim Financial Statements
1 March - 30 November 2015
Hagar hf.
Hagasmára 1
201 Kópavogi
Iceland
Reg. no. 670203-2120
Contents
Endorsement and Signatures by the Board of Directors and the CEO ... 3
Consolidated Statement of Comprehensive Income ... 4
Consolidated Balance Sheet ... 5
Consolidated Statement of Changes in Equity ... 6
Consolidated Statement of Cash Flows ... 7
Notes to the Consolidated Interim Financial Statements ... 8
Condensed Interim Financial Statements of Hagar hf. 30 November 2015
Endorsement and Signatures by the Board of Directors and the CEO
The condensed consolidated interim financial statements of Hagar hf. ("the Company") for the period 1 March to 30 November 2015 have been prepared in accordance with International Financial Reporting Standards (IFRSs) for interim financial statements (IAS 34). The financial statements comprise the consolidated interim financial statements of Hagar hf. and its subsidiaries, together referred to as the "Group". The Company's auditors have not audited or reviewed these interim financial statements.
According to the statement of comprehensive income, profit of the Group for the period amounted to ISK 2,831 million. According to the balance sheet, equity at the end of the period amounted to ISK 15,604 million.
In June 2015, the Company paid dividends to shareholders in the amount of ISK 1,992 million (ISK 1.70 per share).
Statement by the Board of Directors and the CEO
To the best of our knowledge the condensed consolidated interim financial statements give a true and fair view of the consolidated financial performance of the Company for the nine month period ended 30 November 2015, its assets, liabilities and consolidated financial position as at 30 November 2015 and its consolidated cash flow for the period then ended in accordance with International Financial Reporting Standards (IFRSs) for interim financial statements (IAS 34).
The Board of Directors and the CEO have today discussed the condensed consolidated interim financial statements of Hagar hf. for the period 1 March to 30 November 2015 and confirm them by means of their signatures.
Kópavogur, 12 January 2016
The Board of Directors:
Kristín Friðgeirsdóttir
Erna Gísladóttir
Salvör Nordal
Sigurður Arnar Sigurðsson
Stefán Árni Auðólfsson
CEO:
Finnur Árnason
Condensed Interim Financial Statements of Hagar hf. 30 November 2015
Consolidated Statement of Comprehensive Income for the nine months ended 30 November 2015
| Note | Q3 2015 | Q3 2014 | 2015 | 2014 | |
|---|---|---|---|---|---|
| 1.9.-30.11. | 1.9.-30.11. | 1.3.-30.11. | 1.3.-30.11. | ||
| Sales | 18.787 | 18.400 | 57.177 | 56.763 | |
| Cost of goods sold | (14.134) | (13.978) | (43.192) | (43.076) | |
| Gross profit | 4.653 | 4.422 | 13.985 | 13.687 | |
| Other operating income | 45 | 25 | 132 | 82 | |
| Salaries and related expenses | (1.788) | (1.674) | (5.152) | (4.888) | |
| Other operating expenses | (1.637) | (1.630) | (4.824) | (4.695) | |
| Results from operating activities before depreciation and amortisation | 1.273 | 1.143 | 4.141 | 4.186 | |
| Depreciation and amortisation | 7 | (175) | (167) | (508) | (501) |
| Results from operating activities | 1.098 | 976 | 3.633 | 3.685 | |
| Finance income | 60 | 58 | 167 | 197 | |
| Finance expenses | (101) | (91) | (261) | (322) | |
| Net finance expense | 8 | (41) | (33) | (94) | (125) |
| Profit before income tax | 1.057 | 943 | 3.539 | 3.560 | |
| Income tax | (212) | (189) | (708) | (712) | |
| Comprehensive income for the period | 845 | 754 | 2.831 | 2.848 | |
| Earnings per share: | |||||
| Basic and diluted earnings per share of ISK 1 | 0,72 | 0,64 | 2,42 | 2,43 |
The notes on pages 8 to 10 are an integral part of these financial statements.
Condensed Interim Financial Statements of Hagar hf. 30 November 2015
Amounts are in ISK million
Consolidated Balance Sheet as at 30 November 2015
| Note | 30.11.2015 | 28.2.2015 | |
|---|---|---|---|
| Assets | |||
| Operating assets | 8.225 | 6.770 | |
| Intangible assets | 7.735 | 7.750 | |
| Total non-current assets | 15.960 | 14.520 | |
| Inventories | 9 | 6.332 | 4.606 |
| Trade and other receivables | 646 | 864 | |
| Trade receivable - customers' credit cards | 4.063 | 4.271 | |
| Cash and cash equivalents | 2.727 | 3.348 | |
| Total current assets | 13.768 | 13.089 | |
| Total assets | 29.728 | 27.609 | |
| Equity | |||
| Share capital | 1.172 | 1.172 | |
| Share premium | 1.272 | 1.272 | |
| Retained earnings | 13.160 | 12.320 | |
| Total equity | 15.604 | 14.764 | |
| Liabilities | |||
| Loans and borrowings | 10 | 3.680 | 4.239 |
| Incentives from operating leases | 0 | 25 | |
| Deferred income tax liability | 1.236 | 527 | |
| Total non-current liabilities | 4.916 | 4.791 | |
| Loans and borrowings | 10 | 752 | 749 |
| Trade and other payables | 11 | 7.399 | 6.375 |
| Current tax liabilities | 1.027 | 880 | |
| Provisions | 30 | 50 | |
| Total current liabilities | 9.208 | 8.054 | |
| Total liabilities | 14.124 | 12.845 | |
| Total equity and liabilities | 29.728 | 27.609 |
The notes on pages 8 to 10 are an integral part of these financial statements.
Condensed Interim Financial Statements of Hagar hf. 30 November 2015
Amounts are in ISK million
Consolidated Statement of Changes in Equity for the nine months ended 30 November 2015
| Share capital | Share premium | Retained earnings | Total equity | |
|---|---|---|---|---|
| Changes in equity from 1 March to 30 November 2014: | ||||
| Equity at 1 March 2014 | 1.172 | 1.272 | 9.654 | 12.098 |
| Dividends paid, 1.00 ISK per share | ( 1.172 ) | ( 1.172 ) | ||
| Comprehensive income for the period | 2.848 | 2.848 | ||
| Equity at 30 November 2014 | 1.172 | 1.272 | 11.330 | 13.774 |
| Changes in equity from 1 March to 30 November 2015: | ||||
| Equity at 1 March 2015 | 1.172 | 1.272 | 12.320 | 14.764 |
| Dividends paid, 1.70 ISK per share | ( 1.992 ) | ( 1.992 ) | ||
| Comprehensive income for the period | 2.831 | 2.831 | ||
| Equity at 30 November 2015 | 1.172 | 1.272 | 13.159 | 15.604 |
The notes on pages 8 to 10 are an integral part of these financial statements.
Condensed Interim Financial Statements of Hagar hf. 30 November 2015
Amounts are in ISK million
Consolidated Statement of Cash Flows for the nine months ended 30 November 2015
| | Note | Q3 2015
1.9.-30.11. | Q3 2014
1.9.-30.11. | 2015
1.3.-30.11. | 2014
1.3.-30.11. |
| --- | --- | --- | --- | --- | --- |
| Cash flows from operating activities: | | | | | |
| Profit for the period | | 845 | 754 | 2.831 | 2.848 |
| Adjustments for: | | | | | |
| Gain on sale of assets | | ( 1) | ( 1) | ( 9) | ( 9) |
| Incentives from operating lease | | ( 11) | ( 11) | ( 32) | ( 32) |
| Depreciation and amortisation | 7 | 175 | 167 | 508 | 501 |
| Net finance expense | 8 | 41 | 33 | 94 | 125 |
| Income tax | | 212 | 189 | 708 | 712 |
| Working capital provided by operating activities | | 1.261 | 1.131 | 4.100 | 4.145 |
| Change in current assets | | ( 1.060) | ( 924) | ( 1.303) | ( 1.870) |
| Change in current liabilities | | 839 | 426 | 1.632 | 1.590 |
| Cash from operations before interest and taxes | | 1.040 | 633 | 4.429 | 3.865 |
| Interest income received | | 59 | 57 | 164 | 202 |
| Interest expenses paid | | ( 99) | ( 92) | ( 253) | ( 326) |
| Income taxes paid | | 56 | ( 309) | ( 469) | ( 686) |
| Net cash provided by operating activities | | 1.056 | 289 | 3.871 | 3.055 |
| Cash flows used in investing activities: | | | | | |
| Acquisition of real estate | | ( 290) | ( 42) | ( 1.012) | ( 66) |
| Acquisition of operating assets | | ( 334) | ( 186) | ( 955) | ( 584) |
| Acquisition of intangible assets | | ( 2) | 0 | ( 2) | 0 |
| Proceeds from the sale of operating assets | | 7 | 3 | 31 | 25 |
| Net cash used in investing activities | | ( 619) | ( 225) | ( 1.938) | ( 625) |
| Cash flows used in financing activities: | | | | | |
| Repayment of borrowings | | ( 188) | ( 4.400) | ( 562) | ( 6.691) |
| Proceeds from borrowings | | 0 | 4.300 | 0 | 4.300 |
| Dividends paid | | 0 | 0 | ( 1.992) | ( 1.172) |
| Net cash used in financing activities | | ( 188) | ( 100) | ( 2.554) | ( 3.563) |
| Net increase (decrease) in cash and cash equivalents | | 249 | ( 36) | ( 621) | ( 1.133) |
| Cash and cash equivalents at beginning of the period | | 2.478 | 3.046 | 3.348 | 4.143 |
| Cash and cash equivalents at 30 November | | 2.727 | 3.010 | 2.727 | 3.010 |
The notes on pages 8 to 10 are an integral part of these financial statements.
Condensed Interim Financial Statements of Hagar hf. 30 November 2015
Amounts are in ISK million
Notes to the Consolidated Interim Financial Statements
1. Reporting entity
Hagar hf. (the "Company") is a limited liability company incorporated and domiciled in Iceland. The address of the Company's registered office is Hagasmári 1, Kópavogur, Iceland. The condensed consolidated interim financial statements of the Company as at and for the nine months ended 30 November 2015 comprise the Company and its subsidiaries, together referred to as the "Group" and individually as "Group entities". The main activity of the Group is retail.
These condensed consolidated interim financial statements have not been audited or reviewed.
2. Statement of compliance
These condensed consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standard IAS 34 Interim Financial Reporting.
They do not include all of the information required for a complete set of consolidated annual financial statements and should be read in conjunction with the consolidated financial statements of the Company as at and for the year ended 28 February 2015.
The condensed consolidated interim financial statements were approved by the Board of Directors on 12 January 2016.
3. Significant accounting policies
The accounting policies applied by the Group in these condensed consolidated interim financial statements are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 28 February 2015. The annual financial statement can be obtained from the Company or its website, www.hagar.is and on the website of OMX Nordic Exchange in Iceland.
These consolidated financial statements are presented in Icelandic kronas (ISK), which is the Company's functional currency. All financial information presented in Icelandic kronas has been rounded to the nearest million.
Changes in accounting policies
The Group has adopted all new standards and amendments to standards, including any consequential amendments to other standards as they have been endorsed by the EU, with a date of initial application of 1 January 2015. The adoption does not have any effect on the Group's financial statements.
4. Estimates
The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
In preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 28 February 2015.
5. Segment reporting
The Group does not present business segments as its operation is only in retail and in Iceland.
6. Goodwill
Impairment tests
There was no indication of impairment at 30 November 2015 and therefore goodwill was not tested for impairment.
Condensed Interim Financial Statements of Hagar hf. 30 November 2015
Amounts are in ISK million
Notes, cont.:
7. Depreciation and amortisation
Depreciation and amortisation is specified as follows:
| 2015 | 2014 | |
|---|---|---|
| 1.3.-30.11. | 1.3.-30.11. | |
| Depreciation of operating assets | 493 | 484 |
| Amortisation of intangible assets | 15 | 17 |
| Total depreciation and amortisation | 508 | 501 |
8. Finance income and expense
Finance income and finance expense are specified as follows:
| Interest income | 161 | 197 |
|---|---|---|
| Net foreign exchange gain | 6 | 0 |
| Total finance income | 167 | 197 |
| Interest expenses and indexation | (261) | (321) |
| Net foreign exchange loss | 0 | (1) |
| Total finance expense | (261) | (322) |
| Net finance expense | (94) | (125) |
9. Inventories
Inventories are specified as follows:
| | 30.11.2015 | 28.2.2015 |
| --- | --- | --- |
| Groceries | 4.062 | 3.024 |
| Non food goods | 1.896 | 1.394 |
| Goods in transit | 374 | 188 |
| Total inventories | 6.332 | 4.606 |
| Inventory write-down at the end of the period | 100 | 99 |
10. Loans and borrowings
Loans and borrowings are specified as follows:
Non-current loans and borrowings
| Secured bank loans | 3.531 | 4.077 |
|---|---|---|
| Finance lease liability | 149 | 162 |
| Total non-current loans and borrowings | 3.680 | 4.239 |
Current loans and borrowings
| Current portion of secured bank loans | 728 | 728 |
|---|---|---|
| Current portion of finance lease liability | 24 | 21 |
| Total current loans and borrowings | 752 | 749 |
| Total interest bearing loans and borrowings | 4.432 | 4.988 |
Terms and conditions of outstanding loans were as follows:
| Weighted average interest rate | Carrying amount 30.11.2015 | Carrying amount 28.2.2015 | ||
|---|---|---|---|---|
| 30.11.2015 | 28.2.2015 | |||
| Debt in ISK, non-indexed | 7,00% | 6,10% | 4.259 | 4.805 |
| Debt in ISK, indexed | 10,50% | 10,50% | 173 | 183 |
| Non-current loans and borrowing, incl. current portion | 4.432 | 4.988 | ||
| Current portion of non-current loans and borrowings | (752) | (749) | ||
| Total non-current loans and borrowings | 3.680 | 4.239 |
Condensed Interim Financial Statements of Hagar hf. 30 November 2015
Amounts are in ISK million
Notes, cont.:
- Loans and borrowings, contd.:
Contractual repayments of loans and borrowings are specified as follows:
| | 30.11.2015 | 28.2.2015 |
| --- | --- | --- |
| Repayments in 1 year or less | 752 | 749 |
| Repayments in 1 - 2 years | 755 | 753 |
| Repayments in 2 - 3 years | 759 | 756 |
| Repayments in 3 - 4 years | 2.112 | 761 |
| Repayments in 4 - 5 years | 41 | 1.931 |
| Subsequent | 13 | 38 |
| Total | 4.432 | 4.988 |
The fair value of financial assets and liabilities is equal to the carrying amount.
- Trade and other payables
Trade and other payables are specified as follows:
| Trade payables | 6.299 | 4.811 |
|---|---|---|
| Other payables | 1.064 | 1.521 |
| Incentives from operating leases | 36 | 43 |
| Total trade and other payables | 7.399 | 6.375 |
- Group entities
At 30 November 2015 the Company's subsidiaries were six. The subsidiaries included in the condensed consolidated interim financial statements are the following:
| Place of registration and operation | Ownership interest | ||
|---|---|---|---|
| 30.11.2015 | 28.2.2015 | ||
| Hagar verslanir ehf. | Iceland | 100% | 100% |
| Bananar ehf. | Iceland | 100% | 100% |
| Ferskar kjøtvörur ehf. | Iceland | 100% | 100% |
| Noron ehf. | Iceland | 100% | 100% |
| Íshöfn ehf. | Iceland | 100% | 100% |
| Eignarhaldsfélagið Dagar ehf. | Iceland | 100% | 100% |
The Parent Company has pledged all its shares in the subsidiaries as collateral for loans and borrowings.
- Financial Ratios
The Group's primary financial ratios are as follows:
| Balance Sheet: | 30.11.2015 | 28.2.2015 |
|---|---|---|
| Current ratio - Current assets/current liabilities | 1,50 | 1,63 |
| Equity ratio - equity/total capital | 52,5% | 53,5% |
| Internal value of share capital | 13,31 | 12,60 |
Condensed Interim Financial Statements of Hagar hf. 30 November 2015
Amounts are in ISK million