Financial performance in brief:
1-3/2025
Key performance indicators
| 1-3/2025 | 1-3/2024 | 1-12/2024 | |
| Net sales, € million | 2,827.7 | 2,759.5 | 11,920.1 |
| Operating profit, comparable, € million | 95.6 | 99.5 | 650.1 |
| Operating margin, comparable, % | 3.4 | 3.6 | 5.5 |
| Operating profit, € million | 89.4 | 97.2 | 579.5 |
| Profit before tax, comparable, € million | 65.1 | 77.1 | 543.0 |
| Profit before tax, € million | 60.1 | 74.9 | 471.5 |
| Cash flow from operating activities, € million | -24.5 | 112.6 | 1,008.2 |
| Capital expenditure, € million | 138.0 | 329.0 | 675.9 |
| Earnings per share, €, basic and diluted | 0.12 | 0.15 | 0.95 |
| Earnings per share, comparable, €, basic | 0.13 | 0.16 | 1.11 |
| 1-3/2025 | 1-3/2024 | 1-12/2024 | |
| Return on capital employed, comparable, %, rolling 12 months | 11.0 | 12.5 | 11.3 |
| Return on equity, comparable, %, rolling 12 months | 17.8 | 20.5 | 16.1 |
In this interim report, the comparable change % in net sales has been calculated in local currencies and excluding the impact of acquisitions and divestments completed in 2025 and 2024. The comparable operating profit has been calculated by deducting items affecting comparability from the reported operating profit.
Outlook and profit guidance for 2025
Kesko Group’s profit guidance is given for the year 2025, in comparison with the year 2024.
Kesko’s operating environment is estimated to improve in 2025, but to still remain somewhat challenging. Kesko’s comparable operating profit is estimated to improve in 2025. Kesko estimates that its comparable operating profit in 2025 will amount to €640-740 million. The profit guidance is based on an estimate of a gradually improving economic cycle in all Kesko operating countries. Key uncertainties impacting Kesko’s outlook are developments in consumer confidence, investment appetites, as well as geopolitical crises and tensions.
In grocery trade, B2C trade and the foodservice market are estimated to remain stable. In 2025, the comparable operating margin for the grocery trade division is estimated to stay clearly above 6% despite the investments in price and the store site network in accordance with Kesko’s strategy for 2024-2026.
In building and technical trade, the cycle is expected to improve in 2025 from the historically low levels. Profitability in the building and technical trade division is estimated to improve on 2024.
In car trade, the market for new cars is expected to stay at a low level. Demand for used cars and services is estimated to remain good. Profitability for the car trade division is estimated to remain at a good level in 2025 despite weak demand for new cars.
President and CEO Jorma Rauhala:
Kesko’s sales and profit were at a good level in the first quarter of 2025 considering the fact that it is typically the slowest quarter for the company, and our operating environment continued to be challenging. Our net sales for the quarter totalled €2,827.7 million, up by 2.5% on the previous year, or by 1.1% in comparable terms. Kesko’s comparable operating profit totalled €95.6 million. At the end of January, we completed the acquisition of the Danish Roslev Trælasthandel, and the company’s figures have been consolidated into Kesko’s reporting as of 1 February 2025. At the end of March, the Danish competition authorities also approved the acquisition of CF Petersen & Søn with no conditions, and that acquisition is expected to be completed on 30 April 2025. The third acquisition – Tømmergaarden – is estimated to be completed during the first half of 2025. The three acquisitions will significantly strengthen Kesko’s position in the Danish building and home improvement trade market.
In the grocery trade division, net sales totalled €1,486.5 million and comparable operating profit €72.8 million. Net sales and profit decreased year-on-year partly due to the timing of Easter, which fell on April this year, while in 2024 its impact was seen in March. At the start of January 2025, we responded to consumer demand by launching an extensive price programme, which has strengthened our customer flows. Results from the price programme have been promising, but as expected, the programme did have a negative impact on profit. K Group grocery sales decreased by 1.4%. Online grocery sales grew by 5.6%. Sales in the foodservice business decreased by 0.5%, still outperforming the market. Price inflation for groceries stood at 1.8%. Our objective in grocery trade is to strengthen our market position by investing in quality, price, and our store network while maintaining a good level of profitability.
In the building and technical trade division, net sales increased and totalled €1,033.1 million, with a comparable operating profit of €11.7 million. Net sales and profit were underpinned by a pick-up in building and home improvement trade and acquisitions in Denmark. The construction cycle is turning, and sales have picked up especially in the B2B segment in building and home improvement trade. In Finland, sales in building and home improvement trade have grown especially in heavy building materials such as timber. Sales typically tend to pick up in other product categories, such as interior decoration, a little later. Technical trade is post-cyclical, and typically grows stronger some 6 months after a turnaround in building and home improvement trade B2B sales. In Denmark and Norway, building and home improvement trade sales grew markedly, and technical trade sales in Norway were also up. Sales development in Sweden and Poland was muted.
In the car trade division, both net sales and profit increased in the first quarter, thanks in particular to good new car sales. Sales also grew in used cars and services. Net sales for the division totalled €313.9 million, and comparable operating profit €17.9 million. The balanced and comprehensive product and service portfolio underpins the division’s good performance through varying market conditions.
We repeat the profit guidance issued in February, and expect Kesko’s comparable operating profit to improve and be in the range of €640–740 million in 2025.
Further information, audioconference and webcast
Further information is available from Anu Hämäläinen, Executive Vice President, Chief Financial Officer, tel. +358 105 323 713, Hanna Jaakkola, Vice President, Investor Relations, tel. +358 105 323 540, and Eva Kaukinen, Vice President, Group Controller, tel. +358 105 322 338. An English-language audio conference on the results briefing will be held on 29 April 2025 at 9.00 am (EET). The audio conference login is available on Kesko's website at www.kesko.fi. A Finnish-language webcast of the interim report briefing can be viewed at 10.30 am (EET) at www.kesko.fi.
Kesko's half-year financial report for January-June 2025 will be published on 22 July 2025. In addition, Kesko Group's sales figures are published monthly. News releases and other company information are available on Kesko's website at www.kesko.fi.
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