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"Kesko’s performance in the third quarter of 2024 was good considering the market, which remained challenging," says President and CEO Jorma Rauhala. 

"Kesko's net sales in the third quarter of 2024 totalled €3,027 million, up by 2.6% year-on-year, while in comparable terms net sales decreased by 0.8%. Our comparable operating profit totalled €201.5 million, and it was up in both building and technical trade and grocery trade.

In grocery trade division, net sales totalled €1,609 million, up by 1.0%, while the division’s comparable operating profit amounted to €118.8 million. K Group’s grocery sales were down by 0.1%, slightly underperforming the market. Online grocery sales increased by 13.9% thanks in particular to growth in express deliveries. Kespro’s net sales grew by 3.1%, exceeding market growth. Grocery price inflation slowed down notably and stood at 0.4%. Our customer flows continued to grow thanks to campaigns, while customers emphasise price. Our strategy execution in grocery trade is proceeding according to plans, focusing on strengthening store-specific business ideas, developing our store site network, and improving our price competitiveness.

"Kesko’s net sales and operating profit are estimated to remain at a good level in 2024 despite the challenges in our operating environment. We specify our profit guidance and estimate that our comparable operating profit in 2024 will amount to €630–680 million. We furthermore estimate that Kesko’s comparable operating profit will improve in 2025."

In the building and technical trade division, we can see a turn for the better: result for the division grew for the first time in eight quarters. Sales have picked up in both building and home improvement trade and technical trade, but the market remains challenging, The division’s net sales totalled €1,128 million, up by 7.4%, or down by 2.2% in comparable terms. Comparable operating profit for the division totalled €70.1 million, up by €0.2 million. In building and home improvement trade, net sales increased thanks to sales growth in K-Rauta Finland and the Davidsen acquisition in Denmark. Operating profit for Onninen Finland was nearly at last year’s level, and sales and profitability for solar power products have returned to normal levels. In Norway, there have been logistics-related delays in the Elektroskandia integration process, while Byggmakker’s sales slightly underperformed the market. In Sweden, our increased focus on B2B trade under the K-Bygg brand has proceeded according to plans. 

In the car trade division, both net sales and profit decreased as the market remained challenging, but profitability stayed at a good level. Market demand for new cars was muted, but the market for used cars grew slightly. The division’s net sales totalled €295 million and comparable operating profit €17.8 million. New car sales decreased, but when it came to orders for new cars, the market share of car brands represented by Kesko increased. Our sales growth in used cars notably outpaced the market. Service sales also increased. In September, we completed the acquisition of Autotalo Lohja.

Kesko’s net sales and operating profit are estimated to remain at a good level in 2024 despite the challenges in our operating environment. We now specify our profit guidance and estimate that our comparable operating profit in 2024 will amount to €630–680 million. We furthermore estimate that Kesko’s comparable operating profit will improve in 2025."

KEY FIGURES FOR KESKO IN JULY-SEPTEMBER 2024:

• Group net sales in July-September totalled €3,026.6 million (€2,949.1 million); reported net sales grew by 2.6% while comparable net sales were down by 0.8%.

• Comparable operating profit totalled €201.5 million (€208.1 million)

• Operating profit totalled €202.1 million (€206.6 million)

• Cash flow from operating activities totalled €285.6 million (€394.9 million)

• Comparable earnings per share €0.34 (€0.38); reported earnings per share €0.35 (€0.37).

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