Ladies and Shane Timman. Welcome to our 2019 Third Quarter Results Call. I'm Kescos, President and CEO of Big Colorander, together with me, I have our CFO, Yuka Elum, and what is president of iris relations, Anna Yapola, the point is in September. I will first give a brief overview of our business performance, and thereafter, we will be happy to take questions. In the third quarter, Tesco again recorded its all time best result.
Our net sales increased by 6.1%. The development in grocery trade was especially strong in KCT market And the market share was further strengthened. In the building and technical freight, you issued growth continued and profitability improved, especially in the Nordic countries. As a sign of our long term commitment to corporately security and efforts to combat combat climate change, Cresco was again included in the down zone's sustainability indices in September. As a result of strong synergy execution, profitability growth continued during the third quarter.
Operating profit was our all time best quarter, a result of 1,000,000 and operating margin went up to 5 point 4%. As such said, net sales grew by 6.1% and comparable growth was 2.9%. The quarter's basic earnings per share amounted to To net sales forecast constant operations in July, September totaled 2,800,000,008 1,000,000 up to 6.1% thanks to our strong growth strategy execution. Let's say it's increased in all our three divisions. Tesco's comparable operating profit for continuing operations for the third quarter was record high 1000000 up by EUR 15,000,000.
Also profitability improved to 5.4%. Despite the acquisitions, and the investment is carried out this year, our financial position is strong. At the end of September, our liquid assets totaled 1,000,000, to further enhance the liquidity in October to company signed financing agreements, totaling 1,000,000, compared interest margin will increase or decrease depending depending on our ability to meet certain sustainability targets. Interest bearing net debt each excluding lease liabilities was 1,000,000 and the corresponding net debt to EBITDA ratio was 1.0. Our growth strategy execution continues and during the 1st 3 quarters of the year, our investments totaled around 1,000,000.
The most significant acquisitions include the Fresk's Building And Home Improvements Store Chain in Sweden at Volkswagen. How do you share businesses from Larkko and Lansie Auto and Otis and Lato Auto. Return on capital employed. 1 of our financial targets was at the level of 9.6% it improved in the closely trade. Slides, I just went through, highlighted the fact that the social strategy works and brings results.
The good performance is a result of strong implementation of our growth strategy. Next, we take a closer look at each of the division's first growth rate. Net sales totaled 1,000,000,000 and proactively for 7% net sales grew in all food store chains and cash pro. Comparable operating profit increased by 2 point $2,000,000 and was $93,500,000. Profitability into Crossroads rate improved due to good sales development and input operational efficiency.
K group's growth ratio increased by 3.3% with outpaced to market growth rate of 2.5%. The quarter had 1 more wholesale day and the year before, price inflation was approximately 1.7%. Chase grew and profitability improved in oil change, Phoenix competition and consumer authority extended the time limit for the investigation into Cashcock's acquisition of Heron Tuohoo. Phoenix grocery market is changing thanks to our strong strategy implementation. To go a little bit deeper into the changes we see in the grocery trade, today, major trends are ease of something individuality and diversity of customer needs, experiences and inspiration, sustainability and local food, healthy food, especially vegetarian diet.
We see that one of reasons why the market is changing is our actions, as I stated. Our strategy is working in this changing market. Cescot And Cape Food Retailers have been foreigners in modernizing Finnish grocery store selections. Store specific business ideas and insights operating model enable us to provide sustainable inspiring high quality tailored selections, ease and convenience, advanced digital services and online sales. We have we have redesigned the whole store network and all same brands, competitive prices, and more extensive private led pilka selection are important.
Strong strategy execution has resulted in K Group's strength and role as foreigner, influence customer satisfaction and good market share of growth. Next big and technical trade. Where sales, pro, and profit is strengthened, led by Finland, Sweden, and Norway. Net sales, exploring the security cost rate grew significantly by 9.8 percent to €1074,000,000. Net sales grew in comparable terms in Finland, the Baltic Countries and Belarus in Norway and Sweden, net sales increased due to the recent acquisitions.
Comparable operating profit increased by 1,000,000 to EUR 54,500,000. The profitability improved and was 5.1 percent. To the premium and technical trade market, the new bidding volumes in the construction market have been normalizing after peak years and there is steady growth in renovation and infrastructure construction. ESCO's productivity improved its specialty especially, especially due to good development in K- route of Finland on in and and K-tech in Sweden. Profitable growth is at the core of strategy execution, and we are on the right track.
Increased country focus in our strategy execution is working. Sales and profit are up. Our market position in P2P has strengthened and our foothold geographically is balanced. Operators outside Finland account already for 56% of red sales. This Cartwright.
Let's say the Cartwright increased by 11.3% positive by acquisition. The market remains challenging and comparable growth decreased by 5.9 percent. Comparable operating profit was 1,000,000 despite the market disadvantages. They have also paid out extensive efficiency measures during the quarter. Carpet Market in Europe in general is clearly below normal levels.
The uncertainty among consumers continues due to taxation discussions and debate over motive power choices. The performance in Cartwright was soft anticipated but did pick up towards the end of the quarter. Going forward, we see that our competitiveness strengthens. The range of new cars is expanding. It includes, for example, several plug in hybrids and fully electric cars.
The durability is also increasing. Our own operations are more efficient, and dealer network has been enhanced according to the strategy. Finally, I will summarize the priorities and outlook In the grocery trades, our priorities are growing our sales and profitability further in to change in market by utilizing our strategic strengths in everything we do. In the peeling and technical trade, our priorities improve further growing our sales and profitability countered by country, improving continuous improvement of processes and well executed acquisitions. In the Cartrate, our priorities are returning sales and profitability to a good level and further improvement through maximum utilization of the Volkswagen and crops improved and more extensive range of new bottles.
We want to maximize utilization of data, new technologies across K Group. The prioritized constant improvement in operational efficiency and competitiveness preparing for the slowdown of economic growth. And last but not least, even strong focus on visibility for sustainability in all acts by 1800 K Stores. Tesco continues to determine a customer oriented transformation of its business and execution of its strategy. In comparable terms, the net sales for continuing operations for the next 12 months are expected to exceed the level of the previous 12 months.
The comparable operating profit for continuing operations for the next 12 month period is expected to exceed the level of the preceding 12 months. Now it is time for questions for the conference call, lines for ViaSat. If you have questions afterwards, please don't hesitate contacting Honda.
Thank you. Once again, for questions, please press And our first question comes from the line of Nicholas Guzman from Handelsbank Please go ahead Okay. And we seem to have lost Nicholas. Nicholas, can you hear me? Yes.
Okay. Perfect. We can hear you now as well.
Okay.
Please go ahead, ask your question.
Yes. Yes. I'm wondering if you're able to provide some more detail on the various contributors from the to operating profit within the BNT segment from the acquisitions and divestments. You've given up total number here, but I I was keen to see how much risks contributed with and, how much the divestment of owning and helped, which I assume it did. And a and a couple of other things.
Are you able to do that?
Yes. Hi, Nicholas. Good to hear from you. We have opened up in the, in the building of technical trade, sort of, bankrupt operating profit quite a bit actually. So as you can sort of see from that one, the sort of comparable, operating profit grew in in Finland, Sweden, Norway.
And then Belarus and and and the insulin. We will have it with both, caretas profitability development as well as on units as well. In Sweden, CapEx was the biggest contributor of the profitability and KBIC was also the biggest contributor for the whole sort of M and A related operating profit increase. Also, the Norway increased the operating profit, mainly due to the acquisitions we made there. Glara's also increased their profitability, and that's, you know, like a comparable When it comes to the Baltic countries there, the operating profit was somewhat down compared to the last year end.
We had a good sales growth there, but the margin was somewhat lower. And then also the sort of post sort of inflation was somewhat higher. So that affected somewhat our Botics operations, but altogether we are happy with the development, with the already profit in building a technical trade division and and that both sort of, sort of, building material side and an assault 1 and then technical trade side as well, both increase their profitability, but also the specialty goods trade. So also get a sort of solid package.
Okay. But in Norway, for example, do you have underlying growth adjusted for acquisitions? In profit?
Yeah. Like I said, the quote came from the acquisitions in Norway. So that's the sort of output. This contributed the profitability increase in Norway. Remember that clear maturity is now our own operations, retailing operations in Norway as well.
So in that sense, It's a really big part of the business now in Norway, how long we're telling.
And what's the outlook for the Baltic Countries?
How to in public countries? Okay. Of course, everywhere in Europe, we have concerns regarding economic road, as well as also in Baltic Countries, but business environment at least for time being is, favorable and, yeah, progressing in all the Baltic Countries. Price competition was quite tough in third quarter, but despite that, we are progressing and outlook is positive.
Yeah. And if I may add a little bit to Mikael's comment, sort of, we were happy with the top line growth there. So we we clearly took market share in that market. So in that sense, that's a good and positive thing. And I'd say that we actually invested quite a bit to the sort of, e commerce capabilities in both the countries as well.
As you know, we bought one company there last year and we are building sort of multichannel operations in the Baltic countries. So it's also talked about long term investments.
And they're going to continue in Q4?
Well, let's come back to the Q4 a bit later and so on, but, we continue strategy and we'll see the market developments. We'll see what's how that develops, sort of, 3rd quarters up, altogether, sort of market as such is quite solid. So in that sense, Okay. Very traumatic. Please please remember our outlook.
Our outlook is the representative. We are expecting comparable sales. Growth, they are expecting that comparable operating profit, will develop a positive.
Yep. And are you seeing this, the renovation market picking up the slack from new build market weakening in films and then Sweden.
Yeah. Yeah. Absolutely. Absolutely. And, and, but also, we should remember that also new construction developing, and we don't see signs that people and companies will stop the, contractions.
But, anyhow, we can see very strong development in refurbishing and renovation side. As a infra infra construction everywhere in Europe in corn, also not in Europe. A lot of infra heavy intra reimbursements, and we believe that this country will continue also.
Okay. Do you have one more thing, miss Ronald? You're talking is the investment of industry. Yes. Yes.
Absolutely.
Absolutely.
Yeah.
Yes, those were all my questions, I think. Thank you very much.
Thank And there will be a brief pause for any further questions to be registered. And as there are no more questions registered, and I'll hand back to our speakers for any closing comments.
Okay, Hannah. Do we have on chat?
No. We don't actually have any questions there, so I think we will just phone up this discussion. But if you have any further questions, don't hesitate to call me or contact me in the email. All answer your questions.
Exactly. Exactly. Thank you. Thank you, everybody, for a participation. We all trade with 30% afternoons and AV.
Thank you. Bye bye. Thank you.
This now concludes our conference. Thank you all for attending and you may now disconnect.