Can a food-service margin of 13.0% last when peers earn 4.8%?

Smedasundet Servering, a Norwegian food-service company based in Kristiansand, grew revenue by 45.6% to NOK 16.9m in 2025. Operating profit rose to NOK 2.2m from NOK 1.1m, which lifted the operating margin to 13.0% from 9.2%. Net profit reached NOK 1.9m against NOK 896k a year earlier. The 4 comparable companies in the same industry had a median operating margin of 4.8%, so the gap to the median is 8.2 pp.

A margin this far above peers usually rests on pricing, a niche with less competition, a lean cost base, or a favourable arrangement for premises. It can also rest on one good contract or one good year. I would watch the balance sheet as well. Equity grew to NOK 2.0m, but total assets grew faster, so the equity ratio slipped to 26.1% from 37.2%. Cash rose to NOK 1.1m. A wide gap to the peers is a good result, and a good result has to be repeated before it counts as an advantage.