Financial performance in brief:
10-12/2025
· Group net sales in October-December totalled €3,230.9 million (€3,040.6
million); reported net sales grew by 6.3% while comparable net sales grew by
3.1%
· Comparable operating profit totalled €174.6 million (€170.8 million),
representing an increase of €3.8 million
· Operating profit totalled €160.1 million (€121.0 million)
· Cash flow from operating activities totalled €292.5 million (€301.0 million)
· Comparable earnings per share €0.28 (€0.31); reported earnings per share
€0.25 (€0.19)
1-12/2025
· Group net sales in January-December totalled €12,474.7 million (€11,920.1
million); reported net sales grew by 4.7%, while comparable net sales grew by
2.3%
· Comparable operating profit totalled €654.9 million (€650.1 million),
representing an increase of €4.8 million
· Operating profit totalled €631.3 million (€579.5 million)
· Cash flow from operating activities totalled €879.7 million (€1,008.2
million)
· Comparable earnings per share €1.07 (€1.11); reported earnings per share
€1.02 (€0.95)
· The Board proposes a dividend of €0.90 per share, proposed to be paid in
four instalments
Key performance indicators
10-12/2025 10-12/2024 1-12/2025
1-12/2024
Net sales, €
million 3,230.9 3,040.6 12,474.7
11,920.1
Operating
profit, 174.6 170.8 654.9
650.1
comparable,
€ million
Operating 5.4 5.6 5.3
5.5
margin,
comparable,
%
Operating
profit, € 160.1 121.0 631.3
579.5
million
Profit
before tax, 144.2 143.3 533.8
543.0
comparable,
€ million
Profit
before tax, 129.4 93.1 510.3
471.5
€
million
Cash flow
from 292.5 301.0 879.7
1,008.2
operating
activities,
€
million
Capital
expenditure, 139.5 109.0 735.7
675.9
€
million
Earnings per
share, €, 0.25 0.19 1.02
0.95
basic and
diluted
Earnings per
share, 0.28 0.31 1.07
1.11
comparable,
€, basic
1-12/2025 1-12/2024
Return on capital employed, comparable, % 10.4 11.3
Return on equity, comparable, % 15.3 16.1
In this financial statements release, 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 2026
Kesko Group's profit guidance is given for the year 2026, in comparison with the
year 2025. Kesko's operating environment is estimated to improve in 2026, but to
still remain somewhat challenging. Kesko's comparable operating profit is
estimated to improve in 2026. Kesko estimates that its 2026 comparable operating
profit will amount to €650-750 million. 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. The comparable operating profit for the grocery
trade division is estimated to improve in 2026 compared to 2025.
In building and technical trade, the cycle is expected to improve moderately in
2026 from an exceptionally low level. The comparable operating result for the
building and technical trade division is estimated to improve in 2026 compared
to 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. The net sales and
comparable operating profit for Kesko's car trade division are estimated to
improve in 2026 compared to 2025.
President and CEO Jorma Rauhala:
Kesko's comparable operating profit improved and net sales increased in all
three divisions in 2025. The full-year net sales amounted to €12,474.1 million
and comparable operating profit to €654.9 million. In the latter half of the
year, there was a turnaround in profit, as quarter-result improved in Q3 and
growth continued in Q4. The successful execution of our updated growth strategy
in all divisions has yielded results even in an operating environment that has
continued to be challenging. Our cost control has also been effective. Our good
ability to generate profit and financial position have enabled investments in
growth, and we will continue strong growth investments also in upcoming years.
Kesko's Board of Directors proposes to the Annual General Meeting a dividend
payment in line with the company's dividend policy: €0.90 per share, or over
€358 million in total, to be paid in four instalments.
Net sales for Kesko's grocery trade division grew and totalled €6,447.7 million
in 2025, with a comparable operating profit of €418.1 million. Kesko's objective
in grocery trade is to strengthen its market position while maintaining good
profitability. Both were achieved in 2025. Operating margin for the division
stood at 6.5%. The market share development for K Group grocery stores was very
close to the market trend for full-year 2025. A significant turn was seen in the
summer, and our market share grew by 0.2 percentage points in July-December and
by 0.5 percentage points in Q4 (source: Finnish Grocery Trade Association). The
K-Citymarket chain gained market share in the hypermarket segment throughout
2025, and in the final quarter, all K Group grocery chains won over market share
in their respective segments. Kesko's strategic investments in the grocery store
network and the price and quality levels of the stores are yielding results. The
total grocery trade market also grew from the summer onwards. In the foodservice
business, Kespro gained market share despite the 0.3% decrease in sales.
In the building and technical trade division, both net sales and comparable
operating profit grew despite the weak cycle in new housing construction. Net
sales for the division totalled €4,685.8 million, with a comparable operating
profit of €178.6 million. The full-year 2025 profit improved in building and
home improvement trade and was close to flat in technical trade, while in the
final quarter, profit improved in both business areas. We strengthened market
position for Davidsen in Denmark by acquiring three local building and home
improvement trade operators in 2025: Roslev, Tømmergaarden and CF Petersen &
Søn. Kesko's biggest ever construction project, the joint Onninen and K-Auto
logistics centre Onnela in Hyvinkää, Finland, was completed in 2025. Gradual
recovery in the construction cycle continued throughout the year, but the pace
of recovery in the latter half of the year was weaker than anticipated,
especially in new housing construction. In the longer term, however, outlook for
the building and technical trade division is positive. Strategic focus for the
division is on securing growth and profitability and improving cash flow in each
country and business.
Net sales for the car trade division in 2025 increased by 12% and totalled
€1,364.8 million, with a comparable operating profit of €83.1 million. The
division managed to improve its net sales and comparable operating profit
significantly despite the fact that the car trade market in Finland continued to
be challenging, as consumer confidence stayed weak and uncertainty regarding
powertrain choices persisted. Net sales grew in new and used cars, car services,
and sports trade. The strong product and service portfolio and significant
transformation measures carried out within the division in recent years have
resulted in improved sales and profitability. Kesko's objective in car trade is
to outperform the market in all business areas.
Our market position grew stronger in nearly all business areas in 2025. We
estimate that both our operating environment and results will improve in 2026 in
all divisions and operating countries. I want to thank all our customers, the
people of K Group, our shareholders, and our partners for their trust and
cooperation in 2025.
Proposal for profit distribution
The Board of Directors of Kesko Corporation proposes to the Annual General
Meeting to be held on 26 March 2026 that a dividend of €0.90 per share be paid
for the year 2025 based on the adopted balance sheet on shares held outside the
company at the date of dividend distribution. The remaining distributable assets
will remain in equity. The Board proposes that the dividend be paid in four
instalments.
The first instalment of €0.23 per share is to be paid to shareholders registered
in the company's register of shareholders kept by Euroclear Finland Ltd on the
instalment's record date 30 March 2026. The Board proposes that the dividend
instalment pay date be 8 April 2026.
The second instalment of €0.22 per share is to be paid to shareholders
registered in the company's register of shareholders kept by Euroclear Finland
Ltd on the instalment's record date 16 July 2026. The Board proposes that the
dividend instalment pay date be 23 July 2026.
The third instalment of €0.23 per share is to be paid to shareholders registered
in the company's register of shareholders kept by Euroclear Finland Ltd on the
instalment's record date 15 October 2026. The Board proposes that the dividend
instalment pay date be 22 October 2026.
The fourth instalment of €0.22 per share is to be paid to shareholders
registered in the company's register of shareholders kept by Euroclear Finland
Ltd on the instalment's record date 14 January 2027. The Board proposes that the
dividend instalment pay date be 21 January 2027.
The Board proposes that it be authorised to decide, if necessary, on new
dividend payment record dates and pay dates for one or more dividend
instalments, if the rules and statutes of the Finnish book-entry system change
or otherwise so require, or if the payment of dividends is prevented by laws or
regulations applied.
As at the date of the proposal for the distribution of profit, 4 February 2026,
a total of 398,118,827 shares were held outside the company, and the
corresponding total amount of dividends is €358,306,944.30.
Kesko Corporation's distributable assets total €1,547,000,994.36, of which
profit for the financial year is €363,101,477.81.
Annual General Meeting
The Board of Directors has decided that Kesko's Annual General Meeting will be
held on 26 March 2026 at 1.00 pm (EET). Kesko Corporation will publish a notice
of the General Meeting on its website and as a stock exchange release on 5
February 2026.
Annual Report 2025, Corporate Governance Statement, and Remuneration Report for
Governing Bodies
Kesko will publish its 2025 Annual Report, including a strategy review, the
Report by the Board of Directors and financial statements for 2025, the
Corporate Governance Statement, and the Remuneration Report for Governing Bodies
in week 9 on its website at
w (https://www.kesko.fi/en/)w (https://www.kesko.fi/en/)w.ke (https://www.kesko.f
i/en/)s (https://www.kesko.fi/en/)ko.fi (https://www.kesko.fi/en/).
The information in this financial statements release is unaudited.
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 5 February 2026 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 interim report for January-March 2026 will be published on 29 April
2026. 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-December 2025 Financial
Statements Release. 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/#event55170)
DISTRIBUTION
Nasdaq Helsinki Ltd
Main news media
www.kesko.fi (https://www.kesko.fi/en/)