Kesko Group: Announces 9M-2024 Financial Results

Kesko / FI. (kkc) A turn for the better in building and technical trade Finland’s Kesko Group announced with its interim financial results for the third quarter and 9M-2024. President and CEO Jorma Rauhala: «Kesko’s performance in the third quarter of 2024 was good considering the market, which remained challenging. Our net sales totalled EUR 3,027 million, up by 2.6 percent year-on-year, while in comparable terms net sales decreased by 0.8 percent. Our comparable operating profit totalled EUR 201.5 million, and it was up in both building and technical trade and grocery trade.

«Net sales for the grocery trade division totalled EUR 1,609 million, up by 1.0 percent, while the division’s comparable operating profit amounted to EUR 118.8 million. K Group’s grocery sales were down by 0.1 percent, slightly underperforming the market. Online grocery sales increased by 13.9 percent thanks in particular to growth in express deliveries. Kespro’s net sales grew by 3.1 percent, exceeding market growth. Grocery price inflation slowed down notably and stood at 0.4 percent. Our customer flows continued to grow thanks to campaigns, while customers emphasise price. Our strategy execution in grocery trade is proceeding according to plans, focusing on strengthening store-specific business ideas, developing our store site network, and improving our price competitiveness.

«In the building and technical trade division, we can see a turn for the better: result for the division grew for the first time in eight quarters. Sales have picked up in both building and home improvement trade and technical trade, but the market remains challenging, The division’s net sales totalled EUR 1,128 million, up by 7.4 percent, or down by 2.2 percent in comparable terms. Comparable operating profit for the division totalled EUR 70.1 million, up by EUR 0.2 million. In building and home improvement trade, net sales increased thanks to sales growth in K-Rauta Finland and the Davidsen acquisition in Denmark. Operating profit for Onninen Finland was nearly at last year’s level, and sales and profitability for solar power products have returned to normal levels. In Norway, there have been logistics-related delays in the Elektroskandia integration process, while Byggmakker’s sales slightly underperformed the market. In Sweden, our increased focus on B2B trade under the K-Bygg brand has proceeded according to plans.

«In the car trade division, both net sales and profit decreased as the market remained challenging, but profitability stayed at a good level. Market demand for new cars was muted, but the market for used cars grew slightly. The division’s net sales totalled EUR 295 million and comparable operating profit EUR 17.8 million. New car sales decreased, but when it came to orders for new cars, the market share of car brands represented by Kesko increased. Our sales growth in used cars notably outpaced the market. Service sales also increased. In September, we completed the acquisition of Autotalo Lohja.

«Kesko’s net sales and operating profit are estimated to remain at a good level in 2024 despite the challenges in our operating environment. We now specify our profit guidance and estimate that our comparable operating profit in 2024 will amount to EUR 630-680 million. We furthermore estimate that comparable operating profit will improve in 2025.» For additional info please read the PDF below (212 KB):

20241030-KESKO-GROUP-9M2024.