Finland · Delayed Price · Currency is EUR Kesko Oyj Earnings Call Transcripts
Fiscal Year 2026
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Acquisition of Dahl's Nordic operations will significantly expand technical trade presence, with a EUR 1.2 billion deal financed by bridge loans and equity. Integration will be light, focusing on sourcing and IT synergies, and is expected to close by end of 2024.
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Strong Q1 2026 results with sales and profit growth in all divisions, led by market share gains in grocery and improved performance in building, technical, and car trade. Guidance for 2026 is maintained, with risks from geopolitical tensions and consumer confidence.
Fiscal Year 2025
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Result and net sales improved across all divisions in 2025, with strong market share gains and profitability maintained despite price competition and investments. 2026 guidance anticipates further profit growth, continued investments, and a proposed dividend of EUR 0.90 per share.
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Q3 2025 delivered improved results and net sales growth across all divisions, with strong profitability in grocery and car trade, and positive momentum in building and technical trade despite market challenges. Updated 2025 guidance anticipates higher profits, with further improvement expected in 2026.
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Growth strategy execution continues with strong investments and market share gains in grocery and car trade, while building and technical trade remains resilient despite weak markets. Operational efficiency, sustainability, and digitalization are key priorities, with robust cash flow and a flexible balance sheet supporting future growth.
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Q2 delivered steady profit growth, with strong car and grocery trade offsetting slower construction recovery. Guidance for 2025 was narrowed due to persistent weakness in building and technical trade, while acquisitions and strategic initiatives supported market share gains.
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Q1 2025 delivered stable results with net sales growth and a slight decline in comparable operating profit. Grocery trade faced anticipated headwinds from Easter timing and price investments, while building and technical trade and car trade saw improved sales and profits. Guidance for 2025 remains unchanged, with profitability expected to improve as market conditions recover.
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Shareholders were briefed on strong divisional results, new management, and an updated growth strategy. Expansion in Denmark, major investments, and a robust dividend proposal were highlighted. Key risks include economic uncertainty and workforce availability.
Fiscal Year 2024
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Q4 saw the first quarterly profit increase in two years, driven by grocery and car trade improvements, while building and technical trade benefited from acquisitions. 2025 guidance anticipates higher operating profit and margin stability, with continued investments and M&A capacity of EUR 1 billion.
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Q3 saw a turnaround in building and technical trade, stable grocery performance, and resilient car trade despite market headwinds. 2024 profit guidance was raised, and 2025 is expected to bring further improvement, supported by acquisitions and efficiency investments.
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Q2 2024 saw a slight decline in net sales and profit, but strong cash flow and stable margins. Building and Technical Trade remains challenged by a weak construction cycle, while Grocery Trade and Car Trade maintain solid profitability. 2024 guidance was narrowed, with a stable outlook for most segments.
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The updated strategy focuses on profitable growth in grocery, building and technical trade, and car trade, with no major portfolio changes through 2026. Investments target urban growth centers, digitalization, and sustainability, while maintaining strong financial discipline and leveraging M&A opportunities.