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Kesko’s first quarter of 2024 was in line with expectations, and the result was good considering the challenging market. Our net sales totalled €2,759.5 million, which represented a decrease of 2.4% year-on-year, or 5.5% in comparable terms. Our comparable operating profit amounted to €99.5 million. Kesko’s cost efficiency remained good, and our cash flow from operating activities was strong at €112.6 million. At the end of January, we completed the acquisition of one of Denmark’s leading building and home improvement trade operators Davidsen Koncernen A/S, thus expanding our operations to Denmark and gaining a solid foothold on the Danish building and home improvement trade market.

In the grocery trade division, net sales grew and operating profit was at a good level despite our actions towards favourable price levels. Net sales totalled €1,515.1 million, and the comparable operating profit amounted to €82.5 million. K Group's grocery sales grew by 3.3%. Online grocery sales grew by 19.9%, and accounted for some 4.1% of K Group’s grocery sales. Sales for the foodservice business grew by 0.7%, outpacing the market. Price inflation for groceries slowed down markedly in Finland, and stood at 0.6%. Consumption has become more polarised: on the one hand, price continues to be an important criterion, but on the other, consumers also emphasise quality and convenience. Our customer flows continued to grow thanks to campaigns.

In the building and technical trade division, operating profit declined as expected due to the weak cycle in construction in all our operating countries. Net sales totalled €963.6 million and the comparable operating profit amounted to €6.8 million. Overall, the development in net sales and operating profit was in line with expectations. In addition to the weak construction cycle, sales were impacted by the lower number of delivery days year-onyear, due to the timing of Easter, which had a negative impact of over €3 million on operating profit. The sales and profit of solar power products in particular fell short of the exceptional levels seen in the comparison period as a result of the energy crisis. The integration of Elektroskandia, acquired in Norway a year ago, has proceeded according to plans and will be completed this spring. In Sweden, the conversion of K-Rauta stores into K-Bygg stores is proceeding as planned, and will be completed by the end of the year. In Denmark, Davidsen has been part of Kesko since 1 February 2024. Kesko’s objective is to be among the leading sector operators not only in Finland and Norway, but also in Sweden and Denmark.

In the car trade division, net sales and profit were at a good level in the first quarter. Net sales totalled €286.2 million and the comparable operating profit amounted to €16.4 million. The order book for new cars grew from the end of 2023. Used car sales grew and our market share in used cars continued to strengthen. Development in service sales was also positive, and strong growth continued in our K-Lataus EV charging business.

Kesko’s net sales and operating profit are estimated to remain at a good level in 2024 despite the challenges in the company’s operating environment. We specify our profit guidance for the year, and now estimate that Kesko’s comparable operating profit in 2024 will be €620–700 million. The operating profit guidance adjustment is related to the weaker-than-anticipated outlook for construction in 2024.

KEY FIGURES IN JANUARY-MARCH: 

• Group net sales in January-March totalled €2,759.5 million (€2,828.0 million); reported net sales were down by 2.4%, comparable net sales by 5.5%

• Comparable operating profit totalled €99.5 million (€125.9 million)

• Operating profit totalled €97.2 million (€122.6 million)

• Cash flow from operating activities totalled €112.6 million (€27.0 million)

• Comparable earnings per share €0.16 (€0.22); reported earnings per share €0.15 (€0.21)

See all Q1 result materials

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