Kesko's Financial targets and achievements
Kesko’s growth strategy has proven effective and our strong profitability shows that the growth strategy and its successful execution in all three divisions have managed to yield results also in a more challenging operating environment. Our cost-efficiency continued to improve further thanks to efficiency improvement measures implemented. We were also able to significantly improve inventory and working capital turnover in 2023.
We will continue growth strategy execution in all three business divisions, focusing on constant improvement of customer experiences, further development of digital services, and sustainability. In future acquisitions, we will aim for economies of scale and improved competitiveness especially in building and technical trade.
Financial indicators
Kesko’s medium-term financial targets were last updated in spring 2021, and in 2021 and 2022 we achieved the targets. In 2023 we achieved the targets for comparable operating margin and interest-bearing net debt / EBITDA, but fell slightly short of the target for comparable return on capital employed.
|
Indicator |
Target |
Level achieved 2023 |
Level achieved |
Level achieved |
|
Comparable operating margin, % |
Over 6% |
6.0 |
6.9 |
6.9 |
|
Comparable return on capital employed, % |
Over 14.5% |
13.4 |
16.9 |
17.2 |
|
Interest-bearing net debt/EBITDA, excluding the impact of IFRS 16 |
at |
0.7 |
0.2 |
0.0 |
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