Kaldalón hf. Reports Strong Financial Performance in H1 2025
Icelandic knitwear specialist Kaldalón hf. has demonstrated robust financial health in the first half of 2025, as evidenced by its recently approved interim consolidated financial statements. The company’s Board of Directors gave their nod to these figures on August 21, 2025, underscoring a period marked by significant revenue growth and strategic investments.
Revenue Growth and Profitability
A key highlight from the interim report is the substantial 24% year-on-year increase in rental income, a testament to the company’s strategic investments made in the prior year. This surge in rental income has contributed to an impressive operating profit margin, with the NOI ratio standing at 78% for the period. Such a high margin underscores Kaldalón’s operational efficiency and its ability to generate substantial profit from its core activities.
The company’s financial prudence and strategic investments have also translated into a healthy profit before income tax, amounting to ISK 1,753 million. Furthermore, Kaldalón’s return on equity has been reported at 11.3% on an annualized basis, reflecting the company’s effective use of shareholder equity to generate profits.
Strategic Investments and Cash Flow
During the first half of 2025, Kaldalón hf. made significant investments totaling ISK 3.5 billion. These investments are part of the company’s broader strategy to enhance its asset base and operational capabilities. Additionally, the company has seen a remarkable 74% year-on-year increase in cash flow from operations, adjusted for changes in operating assets and liabilities. This increase in cash flow is indicative of Kaldalón’s strong operational performance and its ability to generate cash efficiently.
In a strategic move to expand its real estate portfolio, Kaldalón acquired approximately 10,000 m² of real estate during the period. This acquisition is aligned with the company’s long-term growth strategy and its focus on diversifying its investment portfolio.
Upcoming Bill Auction
Looking ahead, Kaldalón hf. is set to auction six-month bills in a new series, KALD 26 0302 bills, on Monday, August 25, 2025. This auction, conducted using the Dutch method, is part of the company’s policy to be a regular issuer of bills and bonds. The auction will be managed by Landsbankinn hf., with the results and allocation to investors to be announced no later than prior to market opening on Tuesday, August 26, 2025.
Conclusion
Kaldalón hf.’s strong financial performance in the first half of 2025, characterized by substantial revenue growth, high profitability, and strategic investments, positions the company well for continued success. With its upcoming bill auction and ongoing strategic initiatives, Kaldalón is poised to maintain its momentum and further solidify its position in the market.