Financial position
Debt and financing
Key figures
|
1-9/2024 |
1-9/2023 |
1-12/2023 |
|
|
Net sales, € million |
8,879.5 |
8,881.8 |
11,783.8 |
|
Operating profit, comparable, € million |
479.3 |
541.6 |
712.0 |
|
Operating margin, comparable, % |
5.4 |
6.1 |
6.0 |
|
Operating profit, € million |
458.5 |
535.5 |
695.4 |
|
Profit before tax, comparable, € million |
399.7 |
485.3 |
630.4 |
|
Profit before tax, € million |
378.5 |
479.1 |
613.5 |
|
Cash flow from operating activities, € million |
707.2 |
707.1 |
1,049.5 |
|
Capital expenditure, € million |
566.9 |
520.5 |
678.9 |
|
Cash flow from investing activities |
-476.1 |
-452.7 |
-590.2 |
|
Cash flow from financing activities |
-223.0 |
-351.3 |
-492.2 |
|
|
30.9.2024 |
30.9.2023 |
31.12.2023 |
|
Liquid assets |
219.9 |
169.6 |
227.3 |
|
Interest-bearing liabilities |
3,087.5 |
2,723.6 |
2,787.0 |
|
Lease liabilities |
2,011.7 |
1,994.2 |
1,997.9 |
|
Interest-bearing net debt excl. lease liabilities |
855.8 |
559.8 |
561.9 |
|
Interest-bearing net debt/EBITDA, excl. IFRS 16 impact, rolling 12 months |
1.2 |
0.7 |
0.7 |
|
Gearing, % |
108.6 |
97.0 |
92.8 |
|
Equity ratio, % |
32.3 |
34.2 |
35.8 |
Solid financial position
- At the end of Q3/2024, interest-bearing net debt excluding lease liabilities was €856m with lease liabilities amounting to €2,012m
- Lease liabilities consist mainly of long-term real estate leases in relation to store sites
- Net debt / EBITDA excluding IFRS 16 was 1.2x and gearing 108,6%
- Even with lease liabilities included, the Group’s aggregate IFRS liabilities remain under 2.5x as reported at the end of Q3/2024
- The Group is committed to a maximum net debt / EBITDA ratio of 2.5x, excluding the impact of IFRS 16
- Kesko’s strong balance sheet enables organic investments and acquisitions in line with the strategy
Maturity profile and key financing agreements
Instruments in use:
- Commercial paper programs (CPPs) with maturities less than 12M – majority of the “Other interest-bearing debt” (172M€)
- Debt to financial institutions, term loans to Kesko represent the majority of the “Debt to financial institutions” (in 2025 300M€, in 2026 300M€, and in 2027 50M€)
- TyEL loans (FI: TyEL takaisinlainat)
- Debt to K-retailers (FI: tilivelat K-kauppiaille/ennakkomaksut)
Available financing sources (excl. cash flow from operations):
-
- CPPs 513M€ in total
- RCFs (committed)** (FI: luottolimiitit (komittoidut)), 400M€ unused1
* Extendable part 150M€ +1yr (conditions apply)
** RCFs extend to (conditions apply) (usage in brackets1):
- 100M€ to 10/2024 (unused)
- 100M€ to 2027+1yr+1yr (unused)
- 100M€ to 2029+1yr (unused)
- 100M€ to 2029+1yr+1yr (unused)
Maturities of financial liabilities 30.9.2024 (excluding lease liabilities)
| <1 year | 1-5 years | > 5 years | Total | |
| Borrowings from financial institutions | 38.1 | 740.8 | 14.6 | 793.5 |
| Pension loans | 12.0 | 23.5 | - | 35.5 |
| Payables to K-retailers | 67.4 | - | - | 67.4 |
| Other interest-bearing liabilities | 171.5 | 7.9 | 0.0 | 179.4 |
| Total | 288.9 | 772.2 | 14.6 | 1,075.8 |
Kesko’s green notes
Kesko Corporation announced its decision to issue green notes of EUR 300 million on 25 September 2024. The Notes mature on 2 February 2030 and they carry annual interest of 3.500 percent. The issue price of the Notes is 99.317 percent. The yield is 3.646%.
Read more in the listing prospectus of the Notes.
Stock exchange releases about the green notes were published on 20.9.2024, 25.9.2024 and on 2.10.2024.
Read more on stock exchange releases.
Sustainability-linked loan with the Nordic Investment Bank
Kesko has signed a €150 million 7-year sustainability-linked loan with the Nordic Investment Bank (NIB), where the interest rate margin is tied to the attainment of certain sustainability targets set for greenhouse gas emissions and food waste. The loan will support Kesko’s ambition to minimise impact on the climate and nature through its own operations and its value chain. At the end of June 2024, more than half of all Kesko loans were sustainability-linked.
Read more in the investor news release
Green finance framework
Kesko has established a Green Finance Framework applicable for the issuance of green debt instruments to further integrate its ambitious sustainability targets into its financing.
Kesko’s Green Finance Framework has received a second-party opinion from Sustainalytics to this Framework, verifying its credibility, impact and alignment with the ICMA and LMA/APLMA/LSTA Principles. Danske Bank acted as advisor on the establishment of the framework.
