Stock exchange release 15 April 2021: Kesko Corporation issues a positive profit warning and provides preliminary information on its first-quarter net sales and comparable operating profit
Kesko raises its guidance for its comparable operating profit in 2021. The company now estimates that its comparable operating profit in 2021 will be in the range of €570-670 million. Before, the company estimated that the comparable operating profit would be in the range of €520-620 million. The guidance upgrade is based on better-than-anticipated sales development in all divisions and a more positive outlook for the remainder of the year. The illustrative comparable operating profit in 2020 was €554 million.
Kesko's net sales for the first quarter of 2021 totalled approximately €2,539 million and its comparable operating profit approximately €116 million. The illustrative net sales for the first quarter of 2020 totalled €2,356 million and the illustrative comparable operating profit €64.6 million.
In the first quarter, net sales and comparable operating profit grew in all divisions. The figures are based on preliminary unaudited information. Kesko will publish its first-quarter interim report on 28 April 2021.
Guidance upgrade rationale
Retail sales have continued strong in the grocery trade, while the foodservice business has remained profitable despite the difficult market situation. In the building and technical trade, growth has continued better than anticipated in both B2B and B2C trade. Car trade has also grown compared to last year. At the same time, Kesko has managed to further improve cost efficiency. Expectations for the grocery trade and building and technical trade regarding the remainder of the year are more positive than before.
It is still difficult to anticipate the impacts of the Covid-19 pandemic, and consequently the range for the 2021 comparable operating profit guidance remains wide.
Archive of future outlooks
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