Stock exchange release 18 March 2020: Kesko Corporation issues a profit warning: Due to COVID-19 and global economic uncertainty, the company cancels its previous net sales guidance and changes its operating profit guidance
Kesko cancels the outlook statement regarding the net sales for continuing operations and changes the outlook statement regarding the comparable operating profit for continuing operations, both issued in connection with the Financial Statements release on 5 February 2020. Under the prevailing circumstances, the company estimates that the comparable operating profit for continuing operations in 2020 will amount to €400-450 million, thus falling somewhat short of the record comparable operating profit for 2019. The company does not issue a new guidance for net sales.
"Due to the COVID-19 coronavirus and global economic uncertainty, we estimate that we will fall somewhat short of the record operating profit of €461.6 million recorded in 2019. Grocery trade represents approximately half of Kesko's net sales and over 70 per cent of the result. We believe that consumer demand for food will remain good despite the exceptional circumstances. However, sales for the foodservice business are expected to decline. Under the current circumstances, it is difficult to provide assessments for sales and profitability in the building and technical trade and the car trade. We have initiated adjustment measures and they will continue, taking into consideration changes in the different divisions' businesses," says President and CEO Mikko Helander.
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