The Finnish retail and wholesale chain Kesko saw its sales rise by 3.9 percent in November, supported by its two largest business segments.
"The group's results slightly surpassed our expectations, and so far, Q4 performance has been better than we anticipated. We will update our estimates at the latest after the December sales report or in our preliminary commentary for Q4," Finnish financial services firm Inderes stated in a brief comment.
Inderes maintains its "increase" recommendation for Kesko, with a target price of EUR20. The stock closed at EUR18.38 yesterday.
Kesko Oyj is the leading wholesaler and retailer in Finland. Net sales break down by family of products as follows:
- grocery and convenience goods (53.4%; K-retailer; No. 2 in Finland): owned 1,128 supermarkets and stores under the names K-citymarket, K-supermarket, K-Market, Neste K., etc.;
- building, home improvement, DIY and gardening products (36.5%): building materials, interior design materials, gardening products, household appliances, furniture, etc. distributed via 491 outlets primarily under the Onninen, K-rauta, K-Bygg, Byggmakker, Byggarnas Partner and Carlsen Fritzøe brands;
- automotive (10.1%; K-Auto): cars (Volkswagen, Audi, Seat, CUPRA, Porsche, Bentley and MAN brands), spare parts and original accessories marketed through 47 outlets in Finland. The group also offers leisure and sports goods (owned 61 stores under the Intersport and Budget Sport names).
Net sales are distributed geographically as follows: Finland (80%), Nordic countries (15.8%), Baltic countries (1.1%) and other (3.1%).
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