A TURN FOR THE BETTER IN BUILDING AND TECHNICAL TRADE
Jorma Rauhala
President and CEO
30 October 2024
KEY EVENTS IN Q3/2024
Net sales increased, comparable operating profit decreased
Building and technical trade net sales increased. A turnaround can be seen: year-on-year result increased for the first time in 8 quarters
Grocery trade net sales increased, result flat year-on-year
Car trade net sales and result decreased, profitability at a good level
Kesko announced it will acquire three builders' merchants in Denmark:
Roslev Trælasthandel, Tømmergaarden and CF Petersen & Søn. The combined net sales of the companies total approx. €400 million. Once the acquisitions are completed, Kesko's market share in Danish building and home improvement trade is set to rise to some 20%.
Kesko issued a €300 million green bond, which will mature on 2 February
2030
Q3/2024
Q3/2023
Net sales, € million
3,026.6
2,949.1
Change in net sales, %*
-0.8
-2.7
Operating profit, € million*
201.5
208.1
Operating margin, %*
6.7
7.1
Profit before tax, € million*
172.1
188.4
Earnings per share, basic, €*
0.34
0.38
Cash flow from operating activities,
285.6
394.9
€ million
* Comparable
2
NET SALES
€+77 million
€ million
€ million
rolling 12 months
3
OPERATING PROFIT
€-6.6 million
€ million
Operating
4.5%
6.7%
7.1%
5.9%
3.6%
5.8%
6.7%
margin
€ million
rolling 12 months
Operating
6.0%
5.5%
margin
4 Comparable figures
RETURN ON CAPITAL EMPLOYED
%
rolling 12 months
5 Comparable figures
FINANCIAL POSITION
Increase in working capital impacted cash flow in Q3
Q3/2024
Q3/2023
Cash flow from operating activities, € million
285.6
394.9
Liquid assets, € million
219.9
169.6
Capital expenditure, € million
109.4
127.5
Interest-bearing net debt excl. lease liabilities, € million
855.8
559.8
Interest-bearing net debt / EBITDA (excl. IFRS 16 impact, rolling)
1.2
0.7
Lease liabilities, € million
2,011.7
1,994.2
6
THE ONNELA LOGISTICS CENTRE
The Onnela logistics centre in Hyvinkää, Finland is the biggest construction project in
Kesko's history and a notable investment in future growth
The centre will serve both Onninen's technical trade and K-Auto's spare parts business; implementation in stages from Q3/2025 onwards
Once the centre is in full use by the end of 2026, it will notably improve Onninen's efficiency
Timing for the construction has been good, and the project is estimated to come in under the original cost estimate (€300 million); total investment so far €174 million
(end-Q3/2024)
Capital obtained by Kesko through the issuance of green notes is used to finance the project
Special attention has been paid to reducing energy consumption and carbon footprint, thus reducing costs and emissions over the property's long life cycle. The site will host e.g. some 100 geothermal wells and a solar power plant.
7
EXPENSES
Expenses up due to the Davidsen acquisition and real estate costs
Q3/2024
Q3/2023
Fixed costs, € million
484.1
451.9
- Employee benefit expenses, € million
192.7
176.1
- Other expenses, € million
149.9
140.5
- Depreciation, € million
141.5
135.3
Cost ratio, %
16.0
15.3
8 Figures excluding items affecting comparability
GROCERY TRADE
STABLE PERFORMANCE
9
GROCERY TRADE
NET SALES
€+16 million
€ million
€ million
rolling 12 months
10
Attachments
Original document
Permalink
Disclaimer
Kesko Oyj published this content on October 30, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on October 30, 2024 at 06:15:49.129.
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%).
This super rating is the result of a weighted average of the rankings based on the following ratings: Global Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Global Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite), and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of the rankings based on the following ratings: Capital Efficiency (Composite), Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
