Financial performance in brief:
1-3/2025
· Group net sales in January-March totalled €2,827.7 million (€2,759.5
million); reported net sales grew by 2.5% while comparable net sales grew by
1.1%
· Comparable operating profit totalled €95.6 million (€99.5 million)
· Operating profit totalled €89.4 million (€97.2 million)
· Cash flow from operating activities totalled €-24.5 million (€112.6 million)
· Comparable earnings per share €0.13 (€0.16); reported earnings per share
€0.12 (€0.15)
Key performance indicators
1-3/2025 1-3/2024 1-12/2024
Net sales, €
million 2,827.7 2,759.5 11,920.1
Operating
profit, 95.6 99.5 650.1
comparable,
€ million
Operating 3.4 3.6 5.5
margin,
comparable,
%
Operating
profit, € 89.4 97.2 579.5
million
Profit
before tax, 65.1 77.1 543.0
comparable,
€ million
Profit
before tax, 60.1 74.9 471.5
€
million
Cash flow
from -24.5 112.6 1,008.2
operating
activities,
€
million
Capital
expenditure, 138.0 329.0 675.9
€
million
Earnings per
share, €, 0.12 0.15 0.95
basic and
diluted
Earnings per
share, 0.13 0.16 1.11
comparable,
€, basic
1-3/2025 1-3/2024 1-12/2024
Return on capital employed, 11.0 12.5 11.3
comparable, %,
rolling 12 months
Return on equity, comparable, 17.8 20.5 16.1
%, rolling 12 months
In this interim report, the comparable change % in net sales has been calculated
in local currencies and excluding the impact of acquisitions and divestments
completed in 2025 and 2024. The comparable operating profit has been calculated
by deducting items affecting comparability from the reported operating profit.
Outlook and profit guidance for 2025
Kesko Group's profit guidance is given for the year 2025, in comparison with the
year 2024.
Kesko's operating environment is estimated to improve in 2025, but to still
remain somewhat challenging. Kesko's comparable operating profit is estimated to
improve in 2025. Kesko estimates that its comparable operating profit in 2025
will amount to €640-740 million. The profit guidance is based on an estimate of
a gradually improving economic cycle in all Kesko operating countries. Key
uncertainties impacting Kesko's outlook are developments in consumer confidence,
investment appetites, as well as geopolitical crises and tensions.
In grocery trade, B2C trade and the foodservice market are estimated to remain
stable. In 2025, the comparable operating margin for the grocery trade division
is estimated to stay clearly above 6% despite the investments in price and the
store site network in accordance with Kesko's strategy for 2024-2026.
In building and technical trade, the cycle is expected to improve in 2025 from
the historically low levels. Profitability in the building and technical trade
division is estimated to improve on 2024.
In car trade, the market for new cars is expected to stay at a low level. Demand
for used cars and services is estimated to remain good. Profitability for the
car trade division is estimated to remain at a good level in 2025 despite weak
demand for new cars.
President and CEO Jorma Rauhala:
Kesko's sales and profit were at a good level in the first quarter of 2025
considering the fact that it is typically the slowest quarter for the company,
and our operating environment continued to be challenging. Our net sales for the
quarter totalled €2,827.7 million, up by 2.5% on the previous year, or by 1.1%
in comparable terms. Kesko's comparable operating profit totalled €95.6 million.
At the end of January, we completed the acquisition of the Danish Roslev
Trælasthandel, and the company's figures have been consolidated into Kesko's
reporting as of 1 February 2025. At the end of March, the Danish competition
authorities also approved the acquisition of CF Petersen & Søn with no
conditions, and that acquisition is expected to be completed on 30 April 2025.
The third acquisition - Tømmergaarden - is estimated to be completed during the
first half of 2025. The three acquisitions will significantly strengthen Kesko's
position in the Danish building and home improvement trade market.
In the grocery trade division, net sales totalled €1,486.5 million and
comparable operating profit €72.8 million. Net sales and profit decreased year
-on-year partly due to the timing of Easter, which fell on April this year,
while in 2024 its impact was seen in March. At the start of January 2025, we
responded to consumer demand by launching an extensive price programme, which
has strengthened our customer flows. Results from the price programme have been
promising, but as expected, the programme did have a negative impact on profit.
K Group grocery sales decreased by 1.4%. Online grocery sales grew by 5.6%.
Sales in the foodservice business decreased by 0.5%, still outperforming the
market. Price inflation for groceries stood at 1.8%. Our objective in grocery
trade is to strengthen our market position by investing in quality, price, and
our store network while maintaining a good level of profitability.
In the building and technical trade division, net sales increased and totalled
€1,033.1 million, with a comparable operating profit of €11.7 million. Net sales
and profit were underpinned by a pick-up in building and home improvement trade
and acquisitions in Denmark. The construction cycle is turning, and sales have
picked up especially in the B2B segment in building and home improvement trade.
In Finland, sales in building and home improvement trade have grown especially
in heavy building materials such as timber. Sales typically tend to pick up in
other product categories, such as interior decoration, a little later. Technical
trade is post-cyclical, and typically grows stronger some 6 months after a
turnaround in building and home improvement trade B2B sales. In Denmark and
Norway, building and home improvement trade sales grew markedly, and technical
trade sales in Norway were also up. Sales development in Sweden and Poland was
muted.
In the car trade division, both net sales and profit increased in the first
quarter, thanks in particular to good new car sales. Sales also grew in used
cars and services. Net sales for the division totalled €313.9 million, and
comparable operating profit €17.9 million. The balanced and comprehensive
product and service portfolio underpins the division's good performance through
varying market conditions.
We repeat the profit guidance issued in February, and expect Kesko's comparable
operating profit to improve and be in the range of €640-740 million in 2025.
Further information, audioconference and webcast
Further information is available from Anu Hämäläinen, Executive Vice President,
Chief Financial Officer, tel. +358 105 323 713, Hanna Jaakkola, Vice President,
Investor Relations, tel. +358 105 323 540, and Eva Kaukinen, Vice President,
Group Controller, tel. +358 105 322 338. An English-language audio conference on
the results briefing will be held on 29 April 2025 at 9.00 am (EET). The audio
conference login is available on Kesko's website at
w (https://www.kesko.fi/en/)w (https://www.kesko.fi/en/)w.kesko.fi (https://www.k
esko.fi/en/). A Finnish-language webcast of the interim report briefing can be
viewed at 10.30 am (EET) at www.kesko.fi (https://www.kesko.fi/en/).
Kesko's half-year financial report for January-June 2025 will be published on 22
July 2025. In addition, Kesko Group's sales figures are published monthly. News
releases and other company information are available on Kesko's website at
w (https://www.kesko.fi/en/)ww.kesko.fi (https://www.kesko.fi/en/).
This is a summary of Kesko Corporation's January-March 2025 Interim report. The
complete report is attached to this release and also available
at www.kesko.fi/en/investor/ (https://www.kesko.fi/en/investor/reports-and
-presentations/#event57284)