Finnish retail and wholesale chain Kesko reported net sales in line with expectations in the third quarter. The adjusted operating profit was better than expected.

Net sales increased 2.6% to EUR 3,026.6 million (2,949.1), compared to the Vara Research analyst consensus of 3,024.2.

Operating profit was EUR 202.1 million (206.6), compared to an expected operating profit of 188.0. The operating margin was 6.7 percent (7.0).

Adjusted operating profit amounted to EUR 201.5 million (208.1), expected to be 187.9, with an adjusted operating margin of 6.7% (7.1).

Profit before tax was EUR 172.5 million (186.8), analyst consensus 160.1.

Profit after tax was EUR 139.1 million (148.8), analyst consensus 129.8.

Earnings per share amounted to EUR 0.35 (0.37), expected to be 0.33. Adjusted earnings per share were EUR 0.34 (0.38), expected to be 0.33.

"The performance in the third quarter was good considering the market, which continues to be challenging," said CEO Jorma Rauhala in a comment.

Cash flow from operating activities amounted to EUR 285.6 million (394.9).

Kesko is tightening its full-year guidance for adjusted operating profit to EUR 630-680 million, from 620-680. "The guidance is based on the third-quarter profit development in the construction and technical trade," the company writes.

It further states that adjusted operating profit is expected to improve in 2025, without specifying by how much.

Kesko, MEURQ3-2024 ConsensusChange from consensusQ3-2023 Change from consensus
Net turnover 3 026,6 3 024,2 0,1% 2 949,1 2,6%
Operating result 202,1 188,0 7,5% 206,6 -2,2%
Operating margin 6,7% 6,2% 7,0%
Adjusted operating profit 201,5 187,9 7,2% 208,1 -3,2%
Adjusted operating margin 6,7% 6,2% 7,1%
Profit before tax 172,5 160,1 7,7% 186,8 -7,7%
Net result 139,1 129,8 7,2% 148,8 -6,5%
Earnings per share, EUR 0,35 0,33 6,1% 0,37 -5,4%
Adjusted earnings per share, EUR 0,34 0,33 3,0% 0,38 -10,5%
Cash flow from operating activities 285,6 394,9 -27,7%
Consensus data from Vara Research