Finland · Delayed Price · Currency is EUR Kesko Oyj Earnings Call Transcripts
Fiscal Year 2025
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Result and net sales improved across all divisions in 2025, with strong market share gains and robust profitability, especially in grocery and car trade. 2026 guidance anticipates further profit growth, continued investments, and a EUR 0.90 dividend proposal.
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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, stable margins, and focus on market share gains across divisions. Financial position remains robust, with flexibility for further investments and M&A, especially in Sweden. Early signs of consumer confidence improvement and operational excellence initiatives support a positive outlook.
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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 saw net sales growth and stable performance despite seasonality, with building and technical trade and car trade segments driving profit increases. Grocery trade faced margin pressure from price investments and Easter timing, but strategic actions are showing early positive effects.
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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.