KESKO
GROWTH STRATEGY EXECUTION DRIVING GROWTH
May 2024
KESKO TODAY
KEY FINANCIALS
Q1/2024 | 2023 | #1 | Leading trading sector | ~45 000 employees in the | |
company in Northern | whole K Group,1,800 stores, | ||||
Europe with retail and B2B | 3 divisions, comprehensive | ||||
Net sales, € million | 11,715.2 | 11,783.8 | |||
sales of nearly €16bn | digital services in 8 countries | ||||
Operating profit, € million* | 685.6 | 712.0 | |||
Operating margin, %* | 5.9 | 6.0 | |||
Profit before tax, € million* | 599.5 | 630.4 | |||
Cash flow from operating activities, | 1,235.1 | 1,149.5 | Sustainability at the | Market cap some €6.5bn | |
€ million | |||||
core of the strategy | with over 110,000 shareholders | ||||
Return on capital employed, %* | 12.5 | 13.4 | |||
Capital expenditure, € million | 776.1 | 678.9 | |||
*comparable | rolling 12 months |
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KESKO SEGMENT KEY FIGURES
NET SALES
Car trade
OPERATING PROFIT
Car trade
€79.5m
€1,232m
Building and technical trade
Grocery trade
€6,372m
6.5%
€443.4m
7.0%
€4,134m€11,715m
Building and | €685.6m |
technical trade | 5.9% |
€189.3m | |
4.6% |
3 | Q1 2024 rolling 12 months, division figures include common functions and eliminations |
JORMA RAUHALA APPOINTED KESKO'S
PRESIDENT AND CEO AS OF 1 FEBRUARY 2024
MASTER OF SCIENCE (ECON.), BORN 1965
- STRONG TRACK-RECORD IN RESULT-DRIVEN LEADERSHIP A LONG CAREER IN KESKO WITH VARIOUS RESPONSIBILITIES
- Joined Kesko Corporation in 1992
- President of building and technical trade division since 2017
- President of grocery trade division 2013-2017
- Managing Director of Kespro 2007-2012
A MODERN APPROACHABLE LEADER
GROCERY TRADE
STRONG POSITION IN FINNISH FOOD TRADE YIELDING GOOD RESULTS
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STRONG POSITION IN ALL AREAS OF
FINNISH FOOD TRADE
- Strong No. 2 in Finnish grocery trade, with a market share of over 34%
- Finland's most extensive network of grocery stores, some 1,200 stores run by K-retailers
- Leading online grocery operator
- Some 1.6 daily store visits by customers
- No. 1 in Finnish foodservice trade, with a market share of approx. 48%
- Finland's biggest online store for food, some 70% sales via digital channels
- Strong private labels, which account for over 50% of sales
- Advanced common operations: sourcing, logistics and IT
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GROCERY TRADE DIVISION
GROCERY STORE BUSINESS
In brief:
Operates in Finland, business comprises three grocery store chains with some 1,200 stores across the country operated by some 900 K-retailer entrepreneurs. Three different store formats. Also online grocery services and popular private label products. Accounts for 82% of the division's net sales.
Customers:
B2C trade: some 1.8 million daily customer encounters and 4.5 million weekly visits to digital channels.
Over 3.3 million members of the K-Plussa customer loyalty programme.
Key figures:
Net sales €5,196.7 million; operating profit €369.8 million;
operating margin 7.1%
Market and market shares:
Total Finnish grocery trade market €21-22 billion; Kesko the second biggest operator with a market share 34.3% (Nielsen). Market leader in Finnish online grocery.
Growth drivers:
GDP, purchasing power, price competition, urbanisation and
changes in population structure, customer data and insight.
Competitors and peers:
Grocery store operators in Finland: S Group, Lidl
International peers: Ahold Delhaize, Axfood, Coop Group,
Tesco, Kroger, Carrefour
7 Figures for 2023
GROCERY TRADE DIVISION
FOODSERVICE BUSINESS
In brief:
Operates in Finland, business comprises Kespro's foodservice wholesale with 13 cash-and-carry outlets and online sales (70% of total sales), a wide range of services and digital tools (e.g. training, menu development, reporting and forecasting), and Kespro's own brand products (50% of total sales).
Customers:
B2B trade: restaurants, cafés, workplace cafeterias, hotels and public operators such as municipalities and hospitals. Lunch and cafeteria type of sales account for ~ 70% of Kespro's sales.
Key figures:
Net sales €1,154.9 million; operating profit €75.0 million;
operating margin 6.5%
Market and market share:
Total Finnish foodservice market €2.5 billion; Kespro the market leader with a market share of ~ 48%.
Growth drivers:
The growing popularity of eating out, GDP, purchasing power,
price competition, urbanisation and changes in population
structure.
Competitors and peers:
Foodservice in Finland: Valio Aimo, Meira Nova, Metro-tukku
International peers: Marr, Snabbgross, Sysco
8 Figures for 2023
NEW HYPERMARKETS TO BE OPENED IN FINNISH GROWTH CENTRES
Several new growth centre hypermarkets in pipeline
- K-SupermarketColumbus in Eastern Helsinki to be converted into a K-Citymarket hypermarket in 2024
- New K-Citymarket in Lempäälä near Tampere in 2025
- New K-Citymarket in Lahti in autumn 2025, replacing K-Citymarket Paavola
- New K-Citymarket in Haapaniemi, Kuopio in 2026
- New K-Citymarket in Kivistö, Vantaa, Helsinki metropolitan area in 2026
- New K-Citymarket in Porvoo in spring 2027, replacing an outdated hypermarket
- A bigger grocery store under planning for Espoon keskus in Finland's second biggest city Espoo
- In 2024, nearly 50 grocery stores to be updated and renovated, of which 13 hypermarkets
- Investments in store updates and new stores totalling €200-250 million in 2023, same store-site capex level to be expected in upcoming years
K-Citymarket stores under planning/construction
K-Citymarket stores remodelled in 2024
KESKO AND K-RETAILERS
KESKO
Store concepts
Chain selections, wholesale
Responsible purchasing channels,
purchasing alliances, logistics
Own brands
Data-driven management,
customer data
Marketing services
Online stores
Store chains
Store sites
Centralised services
(IT, financial administration, other
support processes)
Retailer reserves
Wholesale,
product strategy
Chain agreement,
chain steering
Services and business
support
Wholesale profit
for Kesko
Chain fees based
on net sales
Store site fees based
on sales margin
Other cost-based
fees
K-RETAILERS
Responsible for ensuring customer
satisfaction, results and profitability
in their stores
Store-specific business ideas
based on customer data
Synergies from the multi-store model
Significant employers
Purchases from local businesses
Members of K-Retailers'
Association
Attachments
- Original Link
- Original Document
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Disclaimer
Kesko Oyj published this content on 13 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 May 2024 09:49:02 UTC.