Kesko’s new financial targets
The new medium-term financial targets for profitability, as approved by the Board of Directors of Kesko Corporation, are a comparable operating margin of 5.5% and a comparable return on capital employed of 12.5%. In terms of financial position, as before, the Group targets a maximum interest-bearing net debt/EBITDA ratio of 2.5, excluding the impact of IFRS 16. Kesko Group’s previous financial targets were a comparable operating margin of 5.0%, a comparable return on capital employed of 11.0%, and interest-bearing net debt/EBITDA of less than 2.5 excluding the impact of IFRS 16.
| Indicator | Target | Actual 09/2020, rolling 12 months |
| Comparable operating margin, % | 5.5 | 5.0 |
| Comparable return on capital employed, % | 12.5 | 11.0 |
| Interest-bearing net debt/EBITDA, excluding IFRS 16 impact |
at maximum 2.5 | 0.5 |
Thanks to the successful execution of its growth strategy, Kesko achieved its previous financial targets at the end of September 2020, sooner than anticipated. The Covid-19 epidemic and related changes in consumer behaviour have also had a positive impact on the company’s profit in 2020. Kesko estimates that less than half of its profit growth in 2020 is related to the Covid-19 epidemic. The new targets take into account economic development in Kesko's operating countries in upcoming years, which is generally expected to be moderate.
Further information:
Jukka Erlund, Chief Financial Officer, tel. +358 105 322 113
Hanna Jaakkola, Vice President, Investor Relations, tel. +358 105 323 540
Kesko Corporation
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Nasdaq Helsinki Ltd
Main news media
www.kesko.fi
