Future outlook

Stock exchange release 14.10.2021: Kesko Corporation issues a positive profit warning and provides preliminary information on its third-quarter net sales and comparable operating profit

Kesko raises its profit guidance for 2021. The company now estimates that its comparable operating profit in 2021 will be in the range of €740 – 800 million. Before, the company estimated that the comparable operating profit would be in the range of €650 – 750 million. The guidance upgrade is based on better-than-anticipated sales growth and profit development especially in the building and technical trade division, and the division’s more positive outlook for the remainder of the year. In 2020, Kesko’s illustrative comparable operating profit totalled €554 million.

In the third quarter of 2021, preliminary net sales totalled approximately €2,902 million (Q3/2020: €2,651.9 million) and comparable operating profit approximately €236 million (Q3/2020: €181.8 million). Net sales and comparable operating profit increased especially in the building and technical trade division, underpinned by a strong market. The changes implemented in the building and technical trade division in recent years have also had a significant positive impact on profitability alongside acquisitions carried out and their successful integration. Comparable operating profit exceeded last year’s level also in the grocery trade and car trade divisions. Kesko will publish its third-quarter results on 29 October 2021.

Guidance upgrade rationale

In the building and technical trade division, growth in B2B trade has continued stronger than anticipated in all operating countries. The growth has been underpinned by stronger-than-anticipated volume development in the construction market and continued rise in raw material prices. Raw material prices have risen the most in building materials such as wood products, metals and plastic products. Expectations regarding the remainder of the year especially in the building and technical trade are more positive than before.

In the grocery trade division, retail sales have developed well while Kespro’s foodservice business has strengthened compared to the year before.

In the car trade division, sales margin growth and cost adjustments have supported profitability, but availability issues caused by component shortages may weaken profitability in the fourth quarter.

The company has managed to improve its cost ratio in all divisions by further increasing operational efficiency.

Estimates for the remainder of the year are made more difficult by the continuing pandemic and challenges in predicting customer behaviour. Estimates are also made more difficult by uncertainties regarding the availability of goods and price inflation.

 

Archive of future outlooks

Stock echange release 14.10.2021
Interim report 1.1.-30.6.2021

Stock exchange release 14.6.2021
Interim report 1.1.-31.3.2021
Stock exchange release 15.4.2021

Financial statements release 2020
Interim report 1.1.-30.9.2020
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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