Future outlook 2012 Q2

26.07.2011

Interim report 1-6/2012 (Published on 25 July 2012)

Estimates of the future outlook for the Kesko Group's net sales and operating profit excluding non-recurring items are given for the 12 months following the reporting period (7/2012-6/2013) in comparison with the 12 months preceding the reporting period (7/2011-6/2012).

Resulting from the problems of European national economies, the outlook for the general economic situation is characterised by significant uncertainty. In addition, cuts in public finances and tightening taxation increase the uncertainty about the development of consumer demand.

The market is expected to remain stable in the grocery trade and home and speciality goods trade. Growth in the building and home improvement trade is expected to slow down as the growth of building construction slows down especially in Finland and Sweden. In the car and machinery trade, the market is expected to decrease.

The Kesko Group's net sales are expected to grow during the next twelve months. Owing to the costs involved in the expansion of the store site network and Russian business operations, as well as a sales decrease in the car trade, we are prepared for the operating profit excluding non-recurring items for the next twelve months to be lower than the operating profit excluding non-recurring items for the preceding twelve months. Capital expenditure is expected to be lower than the capital expenditure of preceding twelve months.

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