Ölgerðin Egill Skallagrímsson hf. – Valuation as of 1 Mar 2025

Key assumptions

• The financial forecast does not include the acquisitions of Ankra, Gæðabakstur, and Kjarnavörur.
• Operating revenue grows by 4% in 2025/26 and then by an average of 5.5% per year over the forecast period, corresponding to GDP growth plus inflation (consumer price index).
• Gross margin averages 29.8% per year over the forecast period.
• Other operating expenses relative to sales average 19% per year over the forecast period.
• Depreciation of operating assets and right-of-use assets amounts to 7.5% per year over the forecast period.
• The average cost of interest-bearing debt is 7.7% per year over the forecast period; financing is in ISK.
• Return on equity of accounted stakes in associated companies is projected at 10% per year.
• Income tax is 20% per year over the forecast period and is calculated on profit excluding earnings from associates.
• Investment in operating assets and right-of-use for 2025/26 is based on management projections; on average these investments amount to 4.3% of operating revenue per year over the forecast period.
• The book value of intangible assets is ISK 7.4bn at the beginning of the forecast period and remains unchanged at its end.
• No dividends are paid in 2025/26, but from 2026/27 onward dividends equal 100% of the owners’ total comprehensive income from the previous year throughout the forecast period. Minority interests’ share of annual profit is also paid out. The equity ratio is 41% at the end of the forecast period.
• Terminal growth at the end of the forecast period is 4.5%, corresponding to 1.5% real growth.
• See other general assumptions under “Valuation”.
• A nominal required return on equity of 10% is assumed when discounting the forecasted results for 2025/26–2034/35.

Results

• Based on the above assumptions, the estimated share value is ISK 14.1 as of 1 March 2025.