Future outlook

Positive profit warning, issued on 17.9.2020

Kesko Corporation issues a positive profit warning thanks to stronger than anticipated sales and improved outlook for the remainder of the year

Kesko raises its guidance for the 2020 comparable operating profit for its continuing operations. Kesko now estimates that the comparable operating profit for continuing operations will be in the range of €510-570 million in 2020. The guidance upgrade is based on better than anticipated sales development in all divisions, improved cost efficiency, and a more positive outlook for the remainder of the year.

On 17 September 2020, Kesko issued a release concerning a change in the consolidation method of Kesko Senukai and impacts of the change. In the operating profit guidance issued now, Kesko Senukai is treated as a joint venture from July 2020 onwards. This change in classification has an approximately €20 million negative impact on the operating profit guidance. The change in classification does not have an impact on Kesko’s comparable earnings per share or Kesko’s dividend distribution.

Before, the company estimated that the comparable operating profit for continuing operations would be in the range of €430-510 million. In the previous guidance, Kesko Senukai was treated as a subsidiary for the full year 2020.

Guidance upgrade rationale

Retail sales have continued strong in the grocery trade, while the foodservice business has recovered well after the exceptional circumstances of last spring. In the building and technical trade, growth has continued better than anticipated in both B2B trade and B2C trade. At the same time, the company has managed to improve cost efficiency. Expectations for the remainder of the year in the grocery trade and building and technical trade are more positive than before with, for example, household consumption more focused on domestic purchases than previously estimated.

So far, the epidemic situation has remained stable in Kesko’s operating countries. However, concerns over the expansion of the Covid-19 epidemic and general economic weakening remain high. A worsened epidemic situation would have a negative impact on Kesko’s businesses and, for example, Christmas sales. Therefore, the range for the guidance given on comparable operating profit for 2020 is still wide.

Read the stock exchange release

Half year financial report 2020, published on 23 July 2020

Outlook for Kesko Group's continuing operations is given for year 2020, in comparison with year 2019.

Kesko estimates that the comparable operating profit for continuing operations will be in the range of €430-510 million in 2020. Before, the company estimated that the comparable operating profit for continuing operations would be in the range of €400-450 million.

The profit guidance upgrade is based on better than anticipated net sales development in the building and technical trade division in various operating countries as well as in the grocery trade. Consumer sales have developed better than anticipated during the exceptional circumstances. B2B sales have also continued stronger than anticipated in both building and home improvement stores and Onninen. Retail sales for all the grocery trade chains have developed better than anticipated, compensating for the decrease in sales in the foodservice business.

In addition to the foodservice business, net sales have clearly decreased in the car trade. Adjustment measures carried out have enabled the company to manage the situation and costs in its various business operations under the challenging circumstances.

Although conditions surrounding the coronavirus have improved in Kesko's operating countries, it is hard to predict the development of the epidemic situation and its economic impact. Therefore, the range for the guidance on comparable operating profit for 2020 is still wide.

 

Archive of future outlooks

Stock exchange release 17.9.2020
Half year financial report 2020
Stock exchange release 10.7.2020
Interim report 1.1.-31.3.2020
Stock exchange release 18.3.2020

Financial statements release 2019
Interim report 1.1.-30.9.2019
Half year financial report 2019
Interim report 1.1.-31.3.2019

Financial statements release 2018
Interim report 1.1.-30.9.2018
Half year financial report 2018
Interim report 1.1.-31.3.2018

Financial statements release 2017
Interim report 1.1.-30.9.2017
Half year financial report 2017
Interim report 1.1.-31.3.2017

Financial statements release 2016
Interim report 1.1.-30.9.2016

Half year financial report 2016
Stock exchange release 1.6.2016

Interim report 1.1.-31.3.2016
Stock exchange release 12.4.2016

Financial statements release 2015
Interim report 1.1.-30.9.2015
Interim report 1.1.-30.6.2015
Interim report 1.1.-31.3.2015

Stock exchange release 16.3.2015

Financial statements release 2014
Interim report 1.1.-30.9.2014
Interim report 1.1.-30.6.2014
Interim report 1.1.-31.3.2014

Financial statements release 2013
Interim report 1.1.-30.9.2013
Interim report 1.1.-30.6.2013
Interim report 1.1.-31.3.2013

Financial statements release 2012
Interim report 1.1.-30.9.2012
Interim report 1.1.-30.6.2012
Interim report 1.1.-31.3.2012

Financial statements release 2011
Interim report 1.1.-30.9.2011
Interim report 1.1.-30.6.2011
Interim report 1.1.-31.3.2011

Financial statements release 2010
Interim report 1.1.-30.9.2010
Interim report 1.1.-30.6.2010
Interim report 1.1.-31.3.2010

Financial statements release 2009
Interim report 1.1.-30.9.2009
Interim report 1.1.-30.6.2009
Interim report 1.1.-31.3.2009

Financial statements release 2008
Interim report 1.1.-30.9.2008
Interim report 1.1.-30.6.2008
Interim report 1.1.-31.3.2008

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