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Kesko’s sales and profitability were at a good level in 2024 despite the challenges in our operating environment. Towards the end of the year, we witnessed a turnaround, as our quarterly result improved for the first time in eight quarters in Q4. Full-year net sales totalled €11,920.1 million, while our comparable operating profit amounted to €650.1 million. The successful execution of our updated growth strategy in all three divisions has yielded results also in a challenging operating environment. Our cash flow from operating activities amounted to €1,008.2 million. We have also been successful in managing costs. Kesko’s good ability to generate profits and our strong financial position enable investments in growth as well as good dividend capacity. Kesko’s Board proposes to the Annual General Meeting a dividend of €0.90 per share – in total, €358 million – to be paid in four instalments.

In the grocery trade division, sales grew in 2024 in both our grocery stores and the foodservice business. Net sales for the division totalled €6,381.4 million, up by 0.5%. The comparable operating profit for the division was €438.0 million. Kespro performed particularly well in 2024, and we aim to continue the good performance in the foodservice business. The popularity of online grocery persisted, and sales grew by 13.5% thanks to express deliveries.

Campaigns and other marketing measures strengthened our customer flows and sales during the year, but the market share for our grocery stores came down as average purchase decreased. Price competition in Finnish grocery trade remained tight, and price continues to be a significant factor for grocery customers. At the beginning of 2025, we responded to customer wishes by launching an extensive price programme, reducing prices of more than 1,200 grocery products. The investment in this strategic programme amounts to nearly €50 million, shared between Kesko and the retailers. Our focus in grocery trade is to strengthen our market position while maintaining good profitability.

In building and technical trade, profitability remained good even though it declined year-on-year due to weak construction activity. Net sales for the division totalled €4,351.6 million, up by 3.8% thanks to the Davidsen acquisition in Denmark. The division’s comparable operating profit totalled €169.1 million. In 2024, demand decreased in both building and home improvement trade and technical trade in all our operating countries as construction volumes came down, but sales picked up in the latter half of the year.

In the longer term, the outlook for building and technical trade is positive. Urbanisation, renovation and infrastructure investment debt, infrastructure projects, and the green transition underpin construction over cycles. During the year, we expanded operations to Denmark by completing the acquisition of Davidsen Koncernen A/S, one of the leading operators in Danish building and home improvement trade, at the beginning of February. In August, we announced the acquisitions of three other Danish operators: Roslev, Tømmergaarden and CF Petersen & Søn. Strategic focus areas for the division are securing profitability and improving cash flow with a country and business focus.

The car trade market in Finland was weak in 2024, but profitability for Kesko’s car trade division stayed at a good level. The market showed some signs of picking up, but weak consumer confidence, continued high interest rates, and uncertainty regarding powertrain alternatives slowed down recovery. Development in the used car market was clearly better than in new cars, and sales also grew in car related services. Net sales for the division in 2024 totalled €1,209.4 million, representing a decrease of 4.0% in comparable terms. The division’s comparable operating profit totalled €69.3 million. The major transformation measures carried out within the division in recent years have improved its profitability. Kesko’s strategic focus is on outperforming the market in all car trade business areas, namely new cars, used cars, and services.

I took over as Kesko’s President and CEO at the beginning of February 2024. In June, we updated Kesko’s strategy, keeping the main pillars intact. In all business operations, we seek sales growth, better customer experiences, profitability and efficiency with the help of e.g. digital services and artificial intelligence. All three divisions have plenty of potential for growth and for further strengthening their business especially by listening to their customers and responding to customer needs. I see Kesko’s future bright also in upcoming years. I want to thank all our customers, the people of K Group, our shareholders, and our partners for their trust and good collaboration over the past year.

KEY FIGURES IN OCTOBER-DECEMBER 2024:

• Group net sales in October-December totalled €3,040.6 million (€2,902.0 million); reported net sales grew by 4.8% while comparable net sales grew by 1.1%

• Comparable operating profit totalled €170.8 million (€170.5 million)

• Operating profit totalled €121.0 million (€159.8 million)

• Cash flow from operating activities totalled €301.0 million (€342.4 million)

• Comparable earnings per share €0.31 (€0.31); reported earnings per share €0.19 (€0.28)

KEY FIGURES  IN JANUARY-DECEMBER 2024:

• Group net sales in January-December totalled €11,920.1 million (€11,783.8 million); reported net sales grew by 1.2%, while comparable net sales decreased by 2.3%

• Comparable operating profit totalled €650.1 million (€712.0 million) 

• Operating profit totalled €579.5 million (€695.4 million)

• Cash flow from operating activities totalled €1,008.2 million (€1,049.5 million)

• Comparable earnings per share €1.11 (€1.28); reported earnings per share €0.95 (€1.25)

• The Board proposes a dividend of €0.90 per share, proposed to be paid in four instalments

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