Kesko as an investment

Interest towards Kesko as an investment has grown in recent years. In 2023, the number of registered Finnish shareholders rose above 100,000 for the first time ever. Kesko’s ownership is diversified, and evenly distributed between Finnish institutions, international investors, and Finnish households.

Effective strategy for 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 maximise 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 grow our market shares in our different operations, and to be among the top two operators in all our businesses 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 recognised by various notable sustainability indices and assessments, including the Dow Jones Sustainability indices the DJSI World and DJSI Europe, CDP, MSCI ESG Ratings, and Sustainalytics. In 2023, Kesko was ranked the best company in its sector (Consumer Staples Distribution & Retail) in Europe in the DJSI World and the DJSI Europe. In the global DJSI World, Kesko ranked fourth highest in its sector. In January 2024, Kesko ranked highest in its sector (Consumer Staples) in the ‘Global 100 Most Sustainable Corporations in the World’ listing. In the MSCI ESG Ratings, Kesko received the highest AAA rating (scale: AAA-CCC).

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