Kesko Oyj : interim report for the period 1 January to 30 September 2017
October 25, 2017 at 06:38 am EDT
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FINANCIAL PERFORMANCE IN BRIEF:
The Group's net sales in January-September totalled €8,058 million (€7,415 million), an increase of 8.7%, or 1.4% in comparable terms
Comparable operating profit was €215.8 million (€209.6 million)
Operating profit was €267.7 million (€187.0 million)
Comparable return on capital employed was 11.4% (12.5%) (rolling 12 months)
Comparable profit before tax was €218.2 million (€211.2 million)
Comparable earnings per share were €1.62 (€1.59)
In comparable terms, the net sales for the next 12 months are expected to exceed the level of the previous 12 months. Due to divestments and restructuring, Kesko Group's net sales for the next 12 months are expected to fall below the level of the previous 12 months. The comparable operating profit for the next 12-month period is expected to exceed the level of the preceding 12 months.
KEY PERFORMANCE INDICATORS
PRESIDENT AND CEO MIKKO HELANDER:
The implementation of our strategy towards becoming a more focused and unified Kesko and K Group is proceeding well.
During the past quarter, net sales grew in comparable terms in all divisions. Profitability improved compared to the year before and cash flow from operating activities continued to strengthen further. Kesko's financial position is very strong.
The strategy for the grocery trade and its implementation, which is proceeding well, resulted in increased sales and improved profitability. The reworking of K-food store chains is well under way. Sales and customer flows are growing for all chains. The changes already made in K-Citymarkets have strengthened the chain's market position. We are also pleased about the progress made in the integration of Suomen Lähikauppa and the resulting synergy benefits, which have materialised sooner than anticipated. Kespro continued to perform well both in terms of sales and profitability.
In the building and technical trade, sales in Finland grew markedly and profitability improved, with Onninen's operating profit in particular continuing to increase. In Onninen's foreign operations, good progress has been made in Poland in measures to improve profitability. Losses in Onninen's Swedish operations have decreased, but work continues to improve profitability further. In the Baltics and Belarus, investments and store renewals continued in an effort to further strengthen Kesko Senukai's sales and market position. The division's sales and operating profit were reduced by the divestments carried out during the first half of the year in the speciality goods trade.
In the car trade, sales and profitability continued to develop positively, and our market share increased during the quarter. The acquisition of AutoCarrera and the good sales of Porsche also contributed to the division's improved profitability.
As a sign of our long-term commitment to corporate responsibility, Kesko is again included in the Dow Jones Sustainability Indices DJSI World and DJSI Europe of the world's most responsible companies.
Audiocast and teleconference of President and CEO Mikko Helander at 14.00 (EET)
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Kesko Oyj published this content on 25 October 2017 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 25 October 2017 10:37:03 UTC.
Original documenthttps://www.kesko.fi/en/media/news-and-releases/news/2017/keskos-interim-report-for-the-period-1-january-to-30-september-2017/
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Kesko Oyj is the leading wholesaler and retailer in Finland. Net sales break down by family of products as follows:
- grocery and convenience goods (53.8%; K-retailer; No. 2 in Finland): owned 1,208 supermarkets and stores under the names K-citymarket, K-supermarket, K-Market, Neste K., etc.;
- building, home improvement, DIY and gardening products (35.6%): building materials, interior design materials, gardening products, household appliances, furniture, etc. distributed via 483 outlets primarily under the Onninen, K-rauta, K-Bygg, Byggmakker, Byggarnas Partner and Carlsen Fritzøe brands;
- automotive (10.6%; K-Auto): cars (Volkswagen, Audi, Seat, CUPRA, Porsche, Bentley and MAN brands), spare parts and original accessories marketed through 49 outlets in Finland. The group also offers leisure and sports goods (owned 62 stores under the Intersport and Budget Sport names).
Net sales are distributed geographically as follows: Finland (82.4%), Nordic countries (13.7%), Baltic countries (1.1%) and other (2.8%).