Kesko's Financial targets and achievements

Kesko measures its medium-term performance and balance sheet structure with several financial indicators. The objective is a growth rate exceeding that of the market in all of its operating countries. Our objective is to maintain good solvency in all market conditions.
Objectives Target level Realisation in 2016 Realisation in 2015 Realisation in 2014
Return on capital employed* 14% 11.9% 11.7% 9.9%
Return on equity* 12% 9.8% 8.2% 7.6%
Interest-bearing net debt/EBITDA < 2.5 0.4 -1.4 -0.3
 
* Comparable
 
Kesko's dividend policy: Kesko Corporation distributes at least 50% of its comparable earnings per share as dividends, taking into account, however, the Company’s financial position and operating strategy.

ROCE and ROE, comparable, %

Net debt/EBITDA

Capital expenditure, €m

The means to achieve the objectives

In the future, Kesko will operate more strongly as a unified K Group, which will enable us to offer customers ever better services and to operate efficiently.

The strategic objective is to strengthen the customer experience for consumers and businesses at both stores and on digital channels. The key focus areas include the renewal of the chain concepts, building the best digital services in the sector and revising the K-Plussa customer loyalty system.

To ensure competitiveness and improve profitability, we have realised savings of €50 million in fixed costs. We estimate that the acquisitions will generate over €30 million in synergies at the EBITDA level from 2018 onwards and over €60 million from 2020 onwards.

In 2015 and 2016, we made capital expenditure of €500 million in business operations, excluding acquisitions. As of 2018, we estimate that the annual capital expenditure will be less than €200 million. 

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