KESKO CORPORATION JANUARY-JUNE HALF-YEAR FINANCIAL REPORT 22.7.2025 AT 8.00
Financial performance in brief:
4-6/2025
- Group net sales in April-June totalled €3,188.8 million (€3,093.4 million); reported net sales grew by 3.1% while comparable net sales grew by 1.3%
- Comparable operating profit totalled €176.7 million (€178.3 million); comparable operating profit excluding the share of result from Kesko Senukai increased (4-6/2024: €171.9 million excl. Kesko Senukai)
- Operating profit totalled €177.9 million (€159.2 million)
- Cash flow from operating activities totalled €323.9 million (€309.0 million)
- Comparable earnings per share €0.29 (€0.30); reported earnings per share €0.29 (€0.26)
1-6/2025
- Group net sales in January-June totalled €6,016.5 million (€5,852.9 million); reported net sales grew by 2.8%, while comparable net sales grew by 1.2%
- Comparable operating profit totalled €272.3 million (€277.7 million); comparable operating profit excluding the share of result from Kesko Senukai increased
- Operating profit totalled €267.2 million (€256.4 million)
- Cash flow from operating activities totalled €299.5 million (€421.6 million)
- Comparable earnings per share €0.42 (€0.46); reported earnings per share €0.42 (€0.42)
Key performance indicators
| 4-6/2025 | 4-6/2024 | 1-6/2025 | 1-6/2024 | 1-12/2024 | |
| Net sales, € million | 3,188.8 | 3,093.4 | 6,016.5 | 5,852.9 | 11,920.1 |
| Operating profit, comparable, € million | 176.7 | 178.3 | 272.3 | 277.7 | 650.1 |
| Operating margin, comparable, % | 5.5 | 5.8 | 4.5 | 4.7 | 5.5 |
| Operating profit, € million | 177.9 | 159.2 | 267.2 | 256.4 | 579.5 |
| Profit before tax, comparable, € million | 145.3 | 150.4 | 210.4 | 227.6 | 543.0 |
| Profit before tax, € million | 146.2 | 131.1 | 206.2 | 205.9 | 471.5 |
| Cash flow from operating activities, € million | 323.9 | 309.0 | 299.5 | 421.6 | 1,008.2 |
| Capital expenditure, € million | 317.6 | 128.4 | 455.5 | 457.4 | 675.9 |
| Earnings per share, €, basic and diluted | 0.29 | 0.26 | 0.42 | 0.42 | 0.95 |
| Earnings per share, comparable, €, basic | 0.29 | 0.30 | 0.42 | 0.46 | 1.11 |
| 4-6/2025 | 4-6/2024 | 1-6/2025 | 1-6/2024 | 1-12/2024 | |
| Return on capital employed, comparable, %, rolling 12 months | 10.7 | 11.8 | 10.7 | 11.8 | 11.3 |
| Return on equity, comparable, %, rolling 12 months | 16.9 | 18.3 | 16.9 | 18.3 | 16.1 |
In this half-year financial report, the comparable change % in net sales has been calculated in local currencies and excluding the impact of acquisitions and divestments completed in 2025 and 2024. The comparable operating profit has been calculated by deducting items affecting comparability from the reported operating profit.
Outlook and profit guidance for 2025 (specified)
Kesko Group's profit guidance is given for the year 2025, in comparison with the year 2024.
Kesko's operating environment is estimated to improve in 2025, but to still remain somewhat challenging. Kesko's comparable operating profit is estimated to improve in 2025. Kesko estimates that its 2025 comparable operating profit will amount to €640-700 million. Kesko previously estimated that the comparable operating profit would amount to €640-740 million. The profit guidance issued now includes the acquisitions completed in Denmark in the first half of the year: their impact on Kesko's 2025 comparable operating profit is estimated to amount to less than €5 million due to costs related to integration and the completion of acquisitions. Kesko Senukai did not report its financial figures for the first half of the year as scheduled. The profit guidance is based on the assumption that the share of result from Kesko Senukai will be at the same level as in 2024. The updated profit guidance is based on developments in the first year-half and updated estimates regarding a slower-than-anticipated cycle recovery in building and technical trade. Key uncertainties impacting Kesko's outlook are developments in consumer confidence and investment appetites, as well as geopolitical crises and tensions.
In grocery trade, B2C trade and the foodservice market are estimated to remain stable. In 2025, the comparable operating margin for the grocery trade division is estimated to stay clearly above 6% despite the investments in price and the store site network in accordance with Kesko's strategy for 2024-2026.
In building and technical trade, the cycle is expected to improve in 2025 from the historically low levels. Profitability in the building and technical trade division is estimated to improve on 2024, but the cycle turnaround in new building construction in particular will be slower than previously anticipated.
In car trade, the market for new cars is expected to stay at a low level. Demand for used cars and services is estimated to remain good. Profitability for the car trade division is estimated to remain at a good level in 2025 despite weak demand for new cars.
President and CEO Jorma Rauhala:
Kesko's sales and result were at a good level in the first half of 2025 considering the fact that consumer confidence remained low in all our operating countries. Our Q2 net sales totalled €3,189 million, up by 3.1% year-on-year. In comparable terms, net sales increased by 1.3%. Our comparable Q2 operating profit stood at €177 million. The comparable operating profit increased when excluding the impact from the share of result from Kesko Senukai. As planned, we completed the three acquisitions of Roslev Trælasthandel, CF Petersen & Søn and Tømmergaarden in Denmark during the first year-half. Following the acquisitions, Kesko's position in the Danish building and home improvement trade market will strengthen considerably, and our market share will rise to nearly 20%, thus supporting overall growth for Kesko.
In the grocery trade division, net sales amounted to €1,606 million, and comparable operating profit to €111 million. Comparable operating profit improved in grocery store chain operations, but decreased in Kespro and K-Citymarket's non-food trade. The price programme we launched in January has proceeded according to plans and both the average purchase and customer flows have grown. The loss of market share in grocery trade has become less pronounced, and in the hypermarket segment, K-Citymarket won over market share in Q2. K Group grocery sales increased by 2.0%, impacted by the timing of Easter, which fell on April this year versus March last year. Online grocery sales grew by 10.1%. Sales for the foodservice business decreased by 0.7%, but the business still once again outperformed the market. Grocery price inflation was at 2.3%. Our objective in grocery trade is to strengthen our market position by focusing on quality, prices and our store network while still maintaining good profitability.
In the building and technical trade division, net sales increased and totalled €1,237 million, while the comparable operating profit stood at €51 million. Excluding the impact of the share of result from Kesko Senukai, the division's comparable operating profit improved slightly. Kesko Senukai did not report its financial figures for the first half of the year as scheduled, which is why in Kesko's reporting the share of result from Kesko Senukai is €0.0 million, versus €6.3 million in the comparison period. The gradual recovery in building and home improvement trade and acquisitions in Denmark lent support to net sales and profit. Gradual recovery in the construction cycle has continued, but the pace has been slower than previously anticipated in all Kesko operating countries, especially in new building construction.
In the car trade division, both net sales and profit increased notably in the second quarter, especially thanks to good performance in new car sales. We also outperformed the market in used car sales, while service sales were down. Net sales for the division totalled €352 million and comparable operating profit €22 million. Sales and profit in sports trade increased.
We are specifying our profit guidance, and now estimate that the comparable operating profit for 2025 will be in the range of €640 - 700 million.
Further information, audioconference and webcast
Further information is available from Anu Hämäläinen, Executive Vice President, Chief Financial Officer, tel. +358 105 323 713, Hanna Jaakkola, Vice President, Investor Relations, tel. +358 105 323 540, and Eva Kaukinen, Vice President, Group Controller, tel. +358 105 322 338. An English-language audio conference on the results briefing will be held on 22 July 2025 at 9.00 am (EEST). The audio conference login is available on Kesko's website at www.kesko.fi. A Finnish-language webcast of the interim report briefing can be viewed at 10.30 am (EEST) at www.kesko.fi.
Kesko's interim report for January-September 2025 will be published on 30 October 2025. In addition, Kesko Group's sales figures are published monthly. News releases and other company information are available on Kesko's website at www.kesko.fi.
This is a summary of Kesko Corporation's January-June 2025 half-year financial report. The complete report is attached to this release and also available at www.kesko.fi/en/investor/
