Financial performance in brief:
7-9/2025
· Group net sales in July-September totalled €3,227.3 million (€3,026.6
million); reported net sales grew by 6.6% while comparable net sales grew by
3.5%
· Comparable operating profit totalled €208.1 million (€201.5 million); the
comparable operating profit includes the share of result from Kesko Senukai for
January-September, totalling €7.4 million, of which the share of result for July
-September was €7.5 million (€4.8 million)
· Operating profit totalled €204.0 million (€202.1 million)
· Cash flow from operating activities totalled €287.7 million (€285.6 million)
· Comparable earnings per share €0.36 (€0.34); reported earnings per share
€0.35 (€0.35)
1-9/2025
· Group net sales in January-September totalled €9,243.8 million (€8,879.5
million); reported net sales grew by 4.1%, while comparable net sales grew by
2.0%
· Comparable operating profit totalled €480.4 million (€479.3 million)
· Operating profit totalled €471.2 million (€458.5 million)
· Cash flow from operating activities totalled €587.1 million (€707.2 million)
· Comparable earnings per share €0.78 (€0.80); reported earnings per share
€0.77 (€0.76)
Key performance indicators
7-9/2025 7-9/2024 1-9/2025 1-9/2024 1
-12/2024
Net sales, €
million 3,227.3 3,026.6 9,243.8 8,879.5
11,920.1
Operating
profit, 208.1 201.5 480.4 479.3
650.1
comparable,
€ million
Operating 6.4 6.7 5.2 5.4
5.5
margin,
comparable,
%
Operating
profit, € 204.0 202.1 471.2 458.5
579.5
million
Profit
before tax, 179.1 172.1 389.5 399.7
543.0
comparable,
€ million
Profit
before tax, 174.7 172.5 380.9 378.5
471.5
€
million
Cash flow
from 287.7 285.6 587.1 707.2
1,008.2
operating
activities,
€
million
Capital
expenditure, 140.7 109.4 596.2 566.9
675.9
€
million
Earnings per
share, €, 0.35 0.35 0.77 0.76
0.95
basic and
diluted
Earnings per
share, 0.36 0.34 0.78 0.80
1.11
comparable,
€, basic
7-9/2 7-9/2024 1-9/2025 1-9/2024 1-12/2024
025
Return on capital employed, 10.6 11.5 10.6 11.5 11.3
comparable, %,
rolling 12 months
Return on equity, comparable, 16.2 16.7 16.2 16.7 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.
Profit guidance for 2025 (specified)
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 2025 comparable operating
profit will amount to €640-690 million. Kesko previously estimated that the
comparable operating profit would amount to €640-700 million.
The updated profit guidance is based on the results for 1-9/2025 and the slower
-than-anticipated cycle recovery in building and technical trade in the third
quarter. Key uncertainties impacting Kesko's outlook are developments in
consumer confidence and investment appetites, as well as geopolitical crises and
tensions.
Outlook for 2026
The operating environment for Kesko is estimated to improve in 2026 in all
divisions and all operating countries. Kesko's comparable operating profit is
also estimated to improve in 2026 in all divisions and all operating countries.
In grocery trade, B2C trade is estimated to pick up and the foodservice business
to remain stable. In 2026, 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 line with Kesko's strategy for 2024-2026. In 2026,
the comparable operating profit for the grocery trade division is estimated to
improve on 2025.
In building and technical trade, the cycle has not improved in 2025 as expected
at the start of the year. In 2026, the cycle is expected to improve moderately
from an exceptionally low level. In 2026, the comparable operating result for
the building and technical trade division is estimated to improve on 2025 in all
Kesko operating countries.
In the car trade market, new car sales are expected to remain muted compared to
long-term levels, but to nonetheless grow compared to 2025. In 2026, the net
sales and comparable operating profit for Kesko's car trade division are
estimated to improve on 2025.
President and CEO Jorma Rauhala:
Kesko's net sales and profit grew in the third quarter of 2025. Net sales for
the quarter totalled €3,227 million, up by 6.6% year-on-year, or by 3.5%. in
comparable terms. Our comparable operating profit totalled €208 million,
representing an increase of €6.5 million. Positive development was seen in all
three divisions even though the market remained relatively challenging.
In the grocery trade division, net sales totalled €1,645 million and comparable
operating profit €118 million. K Group grocery sales increased by 3.6%. Strong
demand continued in online grocery, and sales there grew by 9.9%. Sales for the
foodservice business decreased by 0.2% - sales development was close to market
pace. Price inflation for groceries stood at 2.7%. Our objective in grocery
trade is to strengthen the market share of our grocery stores by focusing on
quality, price and store network, while at the same time maintaining our good
profitability. Results from our strategy execution measures have been promising:
market share development for our grocery stores has strengthened over the course
of this year, and in the hypermarket segment, the K-Citymarket chain won over
market share in January-September. Customer flows have grown thanks to
campaigns, but basic everyday purchases are also up. Although the grocery trade
market remains price driven, we see signs of demand growing for higher quality
products and services.
In the building and technical trade division, net sales increased and totalled
€1,234 million. Comparable operating profit for the division totalled €72
million, representing an increase of €1.6 million. The joint venture Kesko
Senukai reported its share of result, which totalled €7.5 million in the third
quarter. Net sales grew in building and home improvement trade underpinned by
acquisitions, while decreasing in comparable terms. Sales have picked up in
Denmark, Poland and the Baltic countries in particular. Net sales for technical
trade increased, but sales margin weakened despite the increase in sales due to
price competition, which continued tight in a challenging market. The gradual
recovery in the construction cycle has continued, but new housing construction
in particular was weaker than anticipated also in the third quarter. The biggest
construction project in Kesko's history, the joint Onninen and K-Auto logistics
centre Onnela in Hyvinkää, Finland was completed in August, and came in clearly
below the original cost estimate. The new centre will enable Onninen's growth in
the future.
In the car trade division, both net sales and profit grew significantly in the
third quarter. Sales grew in all three car trade businesses, namely new cars,
used cars, and services. We clearly outperformed the market in both new and used
car sales. Net sales for the division grew by €60 million and totalled €355
million. The division's comparable operating profit totalled €23 million, with a
strong operating margin of 6.4%. In sports trade, sales and profit decreased,
but our market share grew.
We are specifying our profit guidance, and now estimate that Kesko's 2025
comparable operating profit will be in the range of €640-690 million. We
estimate that Kesko's operating environment and profit will improve in 2026 in
all divisions and all operating countries.
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 30 October 2025 at 9.00 am (EET). The audio
conference login is available on Kesko's website at www.kesko.fi. A Finnish
-language webcast of the interim report briefing can be viewed at 10.30 am (EET)
at www.kesko.fi.
Kesko's financial statements release for January-December 2025 will be published
on 5 February 2026. In addition, Kesko Group's sales figures are published
monthly. News releases and other company information are available on Kesko's
website at www.kesko.fi.
This is a summary of Kesko Corporation's January-June 2025 half-year financial
report. The complete report is attached to this release and also available
at www.kesko.fi/en/investor/