Kaffihús Vesturbær Faces Financial Challenges Amidst Rising Income
Kaffihús Vesturbær has encountered a significant downturn, reporting a loss of 3 million ISK in 2024, a stark contrast to its profit of 1.6 million ISK in 2023. For context, the café only incurred a modest loss of 178 thousand ISK the previous year.
Despite the challenges, the café’s operating income saw a slight uptick of 6.8 million ISK, marking a 2.7% increase year-on-year to reach nearly 256 million ISK last year. Yet, operating expenses outpaced this growth, climbing by 11.8 million ISK and resulting in costs that exceeded 256 million ISK.
In terms of earnings before interest and taxes (EBIT), there was a notable shift from a positive 4.5 million ISK in 2023 to a negative half a million ISK in 2024. Additionally, net financial expenses amounted to 2.8 million ISK, adding to the financial strain.
The largest contributor to the café’s costs continues to be salaries and employee benefits, which totaled 132 million ISK, reflecting a 7.3% rise from the previous year. The café maintained a stable workforce, employing 13 individuals, the same as in 2023.
At the close of 2024, the café’s assets stood at 34.9 million ISK, with equity reported at roughly 6.4 million ISK. The principal shareholder of Kaffihús Vesturbær is Ferdinand ehf., which holds a 50% stake. Other shareholders hold 15% or less, with Gísli Martein Baldursson, Pétur Marteinsson, and Einar Arnar Ólafsson—former CEO of Play—controlling Ferdinand. Notably, Einar Örn emerges as the largest individual shareholder with a 22% indirect stake in the café, while Gísli Marteinn and Pétur each maintain a 14% indirect interest.
A Community Hub in the Making
Reflecting on the café’s origins, co-owner Pétur Marteinsson shared insights during an interview with After Work, a supplement to the Business Newspaper, just days before the café opened its doors on October 6, 2014.
“The motivation behind establishing the café came from our desire to fill what we perceived as a gap in the neighborhood,” Marteinsson explained. “We envisioned a welcoming space where locals could gather for breakfast, lunch, or simply enjoy a coffee and a light bite throughout the day.”
As Kaffihús Vesturbær navigates its financial landscape, it continues to strive for its initial mission: to serve as a beloved spot in the heart of the community.
