Kesko as an investment
Effective strategy focused on profitable growth
Kesko’s growth strategy centres on profitable growth in three selected business divisions: grocery trade, building and technical trade, and car trade. Continuous improvement of customer experiences, further development of digital services, and corporate responsibility and sustainability are central themes for us strategically. We seek growth both organically and via acquisitions, and make significant investments in developing the network of grocery store sites in Finland and in growing the building and technical trade business in Northern Europe. We operate as ‘One unified K’ and utilise synergies between operations. We also continue to systematically improve productivity and cost efficiency through automation and process renewal.
Strong position in multiple markets
Kesko is a leading trading sector operator in Northern Europe. In Finland, it is the leading sector operator as well as the market leader in building and technical trade. Finland accounts for some 80% of total net sales. In the other Nordic countries and the Baltics, Kesko is among the biggest operators in various customer segments. Our objective is to increase market shares in our businesses, and to be among the biggest operators to ensure economies of scale.
Ability to increase shareholder value
Kesko’s good dividend capacity is based on the strong and steady ability of its operations to generate cash flow. We aim for a steadily growing, attractive dividend yield. Kesko has paid dividends uninterrupted every year since 1968, and over the past five years, our annual dividend yield has averaged 4.5%. Growth in shareholder value is based on making and executing successful strategic choices, as well as on efficient allocation of capital.
Internationally recognised sustainability efforts
Kesko is included in various notable international sustainability indices such as the DJSI World and DJSI Europe, CDP, MSCI ESG Ratings, and Sustainalytics.
The Growing Importance of the Trading Sector
Trading sector is the largest industry in Finland’s business sector when measured by gross domestic product (GDP), accounting for approximately 10 percent of the country’s GDP. It is also the largest sector in terms of employment, providing jobs for around 277,000 people. As industrial society continues to evolve into a service-based society, the significance of the trading sector is steadily increasing. (Source: Finnish Commerce Federation) In building and technical trade, the total market size for technical trade is approximately 22 billion euros and for building and home improvement trade is approximately 18 million euros in all the Kesko’s operating countries combined.
