Ladies and gentlemen, welcome to Keeskoy's Half Year twenty twenty one Release Call. I'm Keeskoy's CEO, Mikko Hellandar. I have together with me our CFO, Jukka Erlund and Vice President, Investor Relations, Hanna Jakkola. It is an honor to start the call with the same words as last time, again another record quarter. I will first give a short overview of our business performance.
Thereafter, I will go through the company's updated strategy and financial targets. And at the end, we will be happy to take questions both by phone and via chat. The 2nd quarter result was record and the best quarter ever. During the quarter a strategy review was conducted. The outcome is clear.
Keeskoy continues the execution of its growth strategy. Also new financial targets were set. During Q2, good retail sales growth continued in grocery stores and food service businesses. Kegspro sales and profitability returned to normal levels. Also in Building and Technical Trade, sales and profitability continued well in all operating countries.
In card rate, we saw a clear turnaround in both sales and profitability. Net sales in 2nd quarter totaled nearly €3,000,000,000 It was up comparably by 12% Net sales increased in all our divisions. Rolling 12 months net sales totaled €10,800,000,000 Comparable operating profit for 2nd quarter was record high €220,000,000 and it increased by €78,000,000 It increased due to good sales development in all our divisions and improved efficiency. Rolling 12 months comparable operating profit totaled €683,000,000 Also good development when it comes to return on capital employed, It increased in all our divisions and was 15% for the whole Group. Keeskoy's financial position is strong.
Cash flow from operating activities was operatively at last year's level and our liquid Assets were almost €370,000,000 Capital expenditure totaled €83,000,000 One of our financial targets, net debt To EBITDA excluding IFRS 16 impact was 0.2%, clearly below the target level. In grocery trade profitability improved for all chains and cash pro. Grocery Trade net sales were nearly €1,500,000,000 and it increased by 3.2%. Rolling 12 months net sales totaled €5,800,000,000 Comparable operating profit for 2nd Cod was record high €109,000,000 and it increased by €26,000,000 Profitability was 7.4 percent and it increased in oil change and cash flow due to core sales development and improved operational efficiency. Rolling 12 months comparable operating profit was €422,000,000 and profitability 7.2%.
During the quarter, retail sales market grew by 2.2%. Household consumption has been focusing on domestic purchases. During the quarter, the General growth in demand for online grocery was down compared to the exceptional levels a year ago. Food Service market is recovering. Grocery sales in K Food Stores were up by 0.6%.
Last year, the performance was exceptionally strong, especially in online sales. Our online Grossery sales declined by 23%, but it is good to remember that online sales were over 500% higher than in 2019. We believe that online grocery will grow in Finland, which is why we decided to invest in an automated collection system, which will be built in a grocery store. It will be the first of its kind in Finland. Our Food Service Businesses Keeskoy's sales grew by almost 40%.
In Building and Technical Trade, strong development continued in all operating countries. Net sales grew comparably by €275,000,000 to €1,230,000,000 Net sales for the Building and Technical Trade division grew in comparable terms in all operating countries. Net sales grew in both P2C and P2P trade. Rolling 12 months net sales was record high over €4,000,000,000 Comparable operating profit for Building and Technical Trade was almost exactly the same as for the grocery trade. It increased by €45,000,000 to record high over €108,000,000 The profitability improved and was 8.8%.
Rolling 12 months comparable operating profit was nearly €260,000,000 and profitability 6.4%. Construction and renovation activity remains at a good level in Northern Europe. P2P trade has continued active, but the strong growth on P2C trade has leveled. Issues with availability have continued in the market. However, we have been able to ensure good product availability in our businesses.
In Finland, strong development For K Raute and Onrennen continued. In Norway, sales and profitability have risen to a whole new level. And in Sweden, sales continued to grow and profitability to improve in all operations. In card rate, we saw a clear turnaround in both sales and profitability. Net sales for the Q2 totaled €290,000,000 and grew comparably by more than 50%.
Rolling 12 months net sales were over €1,000,000,000 Comparable operating profit for 2nd quarter in card rate was €15,300,000 and it increased by €10,500,000 Profitability was 4.9%. Rolling 12 months comparable operating profit was €39,000,000 and profitability was 3.8 percent, going to the right direction. In the market, the first ratios of passenger cars and vans in Finland grew by almost 50%. New all electric cars and plug in hybrids represent over 30% of first registrations of passenger cars. Market is clearly returning to normal levels.
Car availability is a global issue due to growing demand and component shortages. Our new car sales was up by 86%. All electric cars already represent 23% of sales. Our market share in all electric cars is nearly 50%, and overall the market share of our models has risen to 19 point 3%. Our efforts to transform our card rate operations and make them more efficient are proceeding as planned.
And now Keeskoy's Strategy Review 2021. We continue the execution of our growth strategy. During the past years, Profitability has improved significantly, thanks to our good strategy and its strong execution. Our strategy is based on growth, Focus and Transformation. We have carried out more than 30 corporate transactions, Successful Divestments and Acquisitions Supporting Growth.
Digitalization and customer experience have very significant roles in our strategy. Also, Keeskoy is a forerunner in sustainability. Like I said, we continue The execution of our successful strategy. Our strategy centers on profitable growth in 3 selected Business Divisions Grocery, Trade Billing and Technical Trade and Card Trade. Continuous improvement of customer experience, further development of digital services and corporate responsibility and sustainability are even more central to our strategy than before.
We are 1 unified K, meaning Keesko and K retailers together. For grocery trade, the core of the strategy is growing sales and improving profitability by offering the best customer experience and differentiating ourselves from the competition. Our market position in Finnish Grocery Trade and Food Service Business is strong and we want to strengthen our position further. Keeskoy is a foreigner digitalization in the sector using widely, amongst other things, customer Data in Decision Making and Improving Multi Channel Customer Experience. Efficient Logistics and IT play a crucial role in all business Operations and Efficiency.
In Building and Technical Trade, we are seeking growth through sector consolidation in Northern Europe and Continuous Development of Operations in Each Country. In Finland, we are a strong market leader with both K Rauter and Onenen. Scandinavia, we are seeking further growth with acquisitions and to continue good development in both Norway and Sweden in terms of sales and profitability. In Poland, Oninen has a strong position and we are seeking further growth also in Poland. In Baltic countries, we are a market leader with good Agility Development.
We are committed to further grow and develop Keeskoye. Today, we announced that we are acquiring a company called Pukkarna's Partner in Sweden. Tucano's partner serves professional builders and has 5 stores in the Stockholm area. The acquisition strengthens our position in the Swedish Building and Home Improvement Trade Market. This deal is A great example of our growth strategy execution.
We are seeking growth both organically and via acquisitions, and we see Good further growth potential in the Swedish market. In card trade, our aim is to raise Sales and Profitability to a New Level by Offering the Best Customer Experience in Finland, Transforming and Updating Our Operations and collaborating more closely with the Volkswagen Group. We are leading operator in new car sales with strong market shares and a foreigner in eMobility. Our aim is to create a significant separate business of used car sales. This includes better used car sales methods and more efficient sourcing.
The 3rd business is Service Sales. We are updating our servicing and repair business, expanding K Shards Network and Leasing Businesses. We are also a forerunner in trading sector digitalization. Our aim is to Continue using digitalization to improve customer experience and make our operations more efficient. Online and digital sales are growing fast.
Our rolling 12 months digital sales were over €1,300,000,000 Data and Analytics are the core of business operations. For example, we use widely data we received from our KPLUSA Loyalty Program. Digitalization of stores and processes is proceeding at a fast pace. It makes store processes more efficient, improve customer satisfaction, and for example, offer new marketing channels for us and our partners. With personalized digital services, we are able to further increase customer loyalty.
Corporate Responsibility and Sustainability is acquiring value in our operations. Our climate targets are ambitious. We are aiming for 0 emission by 2,030, and we are also encouraging our suppliers and customers to reduce their emissions. We are the world's most sustainable grocery trade company offering sustainable choices for our customers. And for example, we are purchasing for responsible suppliers and enabling e mobility.
Sustainability is central to all our operations. Kei is a good trusted partner, employer and a good corporate citizen. Financial targets. The Board of Directors of Keeskoy Corporation set the new medium term financial targets for the company. The new target for comparable operating margin is over 6%, for comparable return on capital employed over 14.5%.
The balance sheet target of interest bearing net debt to EBITDA was not changed and is maximum 2.5. And then guidance. The outlook For this year, it's positive and we expect a significant profit improvement also in 2021. We estimate that Keeskoy's comparable operating profit in 2021 will be in the range of €650,000,000 €750,000,000 Thank you. And now we are ready for questions.
First, we will take questions from the conference call lines. Please.
Thank We have a question from the line of Frederik Iversham from ABG. Please go ahead. Thank you very much. A few questions from my side.
If we start on the within the grocery space, I think sales to the grocery stores Decreased in the quarter and that's obviously on the back of tough comps and so forth. And then I suppose comps are getting Slightly softer in Q3. So curious to hear what your expectations are regarding grocery sales to the k Food Stores in the current quarter.
Yes. As you mentioned and I underlined also in our presentation that all in all, we had strong development, but After very exceptional Q2 2020, online sales declined now. But anyhow, it is still 500% above year 2019, meaning that we believe strongly that online sales will continue strongly in coming years also in Finland and our strategy to offer best in class multichannel services in grocery trade is winning concept. And we continue strongly development of our store network as well as online business. And based on that, we are very positive and optimistic that we can maintain strong development also in future.
Maybe to add on that one that the traffic in the stores has been good. And Obviously, renewing the stores and upgrading the stores all the time is targeting for that one.
Yes, exactly.
Okay. Thank you. And then on the margin in Building and Technical Trade. How did the gross margin develop year on year, given What you see on the pricing side and also maybe what your expectations is or for the gross margin in H2?
All in all, we have strong development in Building and Technical Trade in all fields and every country. And That makes us, I believe, very strong player also in future in building a technical market. And again, I underline our aim to continue consolidation of European Northern European Building and Technical Trade and Acquisition in Sweden is again a good example of that. But Jokka, please, you can open a little bit those numbers and margins.
Yes. Especially on the gross profit side, maybe worth mentioning that, obviously, it's Volume driven profitability improvement that we have had, both organic but also driven by Carsten Fritz acquisition that we made Last year, but also the gross margin as a percentage was also somewhat higher. So it is coming from all of those sort of three Sources in a way. So I think we are sort of managing the margins well. And with the higher volume, it helps in the profitability side.
Right. So gross margin is slightly higher in Q2. And then do you think That year on year difference will be similar in Q3, Q4? Or will it come down a little bit given What you see on the sourcing side?
Well, we don't give any estimations on that level when it comes to the outlook and so on. But I was referring to the Q2. And like I said, we had both volume growth as well as margin improvement as well. So I think it's well under control.
Okay. Fair enough.
We are working also with price increases because As everybody knows, raw materials prices costs are going up, and it is Also our responsibility to bring price cost increases to prices. And Also on that side, we are working very strongly and very well.
Right. Thank you. And also on Building and Technical Trade, what do you see in terms of supply chain constraints at the moment? And Any potential shortages, I guess, of building material as we look into the second half of the year?
Absolutely. It's challenge and it is some kind of a global challenge in our Industry, but our side situation is very well under control. Our people, They have done also in this field extremely good job and they have succeeded also to guarantee supplies. And we don't have serious shortage, not in Finland, not in other countries. And This is definitely one reason of why we have gained market share and why we are in good position to gain Market share also in future.
Okay. Perfect. And last one for me on Keespro. You said that profitability was in line with the normal levels. Should we think, in absolute terms, EBIT in line with Q2 2019 or margin in line with Q2 2019?
No. Again, we don't give that kind of future guidance. But as you have seen, in All businesses, we are working very hard to increase our sales and to improve profitability, also in Keespro. And things are moving to the right direction. We are very, very pleased that Keeskoy also during pandemia has gained market share.
And thanks to higher market share, now when market is Recovering, we are in excellent position to increase also sales as we saw already in the second quarter. And that gives great opportunities also to improve financial performance also in Kegspro Business.
Right. I wasn't asking for any future guidance. So it's just because you mentioned that So profitability in line with normal levels. And I'm just curious to hear whether I mean, just a clarification on that statement. Was that in absolute terms or in So terms or in margin terms?
In all, it's getting back to normal. But what I tried to explain, We see and we feel that we are now in a good position, for example, thanks to higher market share to improve profitability in future. But Jukka, Kuprijs, you can maybe open a little bit more.
Yes. We were really happy with the Keeskoy's development and how it sort of Grew the business and profitability as well, but it's clear that the market is not at the normal situation at this point. So We do see that there's still sort of way to go before we are at the same levels as we were at some point in the history. But definitely, The progress was good and it's sort of getting there, but there are still sort of potential to improve further Due to situation that not sort of Horakka business is not at a normal level at this point yet.
Okay, fair enough. Thank you. That's all my questions. And we have no further audio questions. Okay.
And actually on chat, we don't have any But if you have any going forward, don't hesitate calling me. But do you have any other greetings, sirs, You would like to pass on to international audience?
Just thank you for your participation. And Jokka, Hana, myself, we wish you very pleasant Friday afternoon and sunny weekend.
Thank you. Thank
you. Thanks, everybody.