Financial position

In this section you can find information on Kesko’s financing structure, financing facilities and interest-bearing debt. Kesko currently has no credit rating.

Debt and financing

Key figures

 

1-3/2025

1-3/2024

1-12/2024

Net sales, € million

2,827.7  2,759.5  11,920.1 

Operating profit, comparable, € million

95.6  99.5  650.1 

Operating margin, comparable, %

3.4 3.6 5.5

Operating profit, € million

89.4  97.2  579.5 

Profit before tax, comparable, € million

65.1  77.1  543.0 

Profit before tax, € million

60.1  74.9  471.5 

Cash flow from operating activities, € million

-24.5  112.6  1,008.2 

Capital expenditure, € million

138.0  329.0  675.9 

 

 

 

 

Cash flow from investing activities

-108.1 -285.9 -597.5

Cash flow from financing activities

-193.1 106.7 -149.8

 

 

 

 

 

31.3.2025

31.3.2024

31.12.2024

Liquid assets

147.5 145.1 488.1

Interest-bearing liabilities

3,561.0 3,050.4 3,396.3

Lease liabilities

2,196.8 2,023.6 2,051.0

Interest-bearing net debt excl. lease liabilities

1,216.7 881.7 857.2

Interest-bearing net debt/EBITDA, excl. IFRS 16 impact, rolling 12 months

1.6 1.1 1.1

Gearing, %

138.7 121.3 106.3

Equity ratio, %

28.6 29.7 32.5

 

 

 

 

 

 

Solid financial position 

Solid financial position Q1 2025.PNG

  • At the end of Q1/2025, interest-bearing net debt excluding lease liabilities was €1,217m with lease liabilities amounting to €2,197m
  • Lease liabilities consist mainly of long-term real estate leases in relation to store sites
  • Net debt / EBITDA excluding IFRS 16 was 1.6x and gearing 138,7%
  • The Group is committed to a maximum net debt / EBITDA ratio of 2.5x, excluding the impact of IFRS 16
  • Kesko’s strong balance sheet enables organic investments and acquisitions in line with the strategy

Maturity profile and key financing agreements

Debt maturity Q1 2025.PNG

Ongoing negotiations to refinance 2025 and 2026 maturing debt to financial institutions. In RFC’s extensions will be requested.

Instruments in use:

  • Debt to financial institutions, term loans to Kesko represent the majority of the “Debt to financial institutions” (in 2025 150M€, in 2026 420M€, in 2027 50M€ and in 2031 150M€)
  • Kesko Bond 2030: 300M€
  • TyEL loans (FI: TyEL takaisinlainat)
  • Debt to K-retailers (FI: tilivelat K-kauppiaille/ennakkomaksut)

Available financing sources (excl. cash flow from operations):

  • CPPs 513M€ in total unused1
  • RCFs (committed)** (FI: luottolimiitit (komittoidut)), 300M€ unused1

* RCFs extend to (conditions apply) (usage in brackets1):

  • 100M€ to 2027+1yr+1yr (unused)
  • 100M€ to 2029+1yr (unused)
  • 100M€ to 2029+1yr+1yr (unused)

Maturities of financial liabilities 31.3.2025 (excluding lease liabilities)

  <1 year 1-5 years > 5 years Total
Borrowings from financial institutions 196.8 563.9 169.2 930.0
Notes 0.0 298.6 0.0 298.6
Pension loans 12.0 17.5                            -   29.5
Payables to K-retailers 67.1                            -                              -   67.1
Other interest-bearing liabilities 24.5 14.6 0.0 39.1
Total 300.4 894.6 169.2 1 364.3

Kesko’s green notes

Kesko Corporation announced its decision to issue green notes of EUR 300 million on 25 September 2024. The Notes mature on 2 February 2030 and they carry annual interest of 3.500 percent. The issue price of the Notes is 99.317 percent. The yield is 3.646%.

Stock exchange releases about the green notes were published on 20.9.2024, 25.9.2024 and on 2.10.2024. Read more on stock exchange releases.

Sustainability-linked loan with the Nordic Investment Bank

Kesko has signed a €150 million 7-year sustainability-linked loan with the Nordic Investment Bank (NIB), where the interest rate margin is tied to the attainment of certain sustainability targets set for greenhouse gas emissions and food waste. The loan will support Kesko’s ambition to minimise impact on the climate and nature through its own operations and its value chain. At the end of June 2024, more than half of all Kesko loans were sustainability-linked.

Green finance framework

Kesko has established a Green Finance Framework applicable for the issuance of green debt instruments to further integrate its ambitious sustainability targets into its financing.

Kesko’s Green Finance Framework has received a second-party opinion from Sustainalytics to this Framework, verifying its credibility, impact and alignment with the ICMA and LMA/APLMA/LSTA Principles. Danske Bank acted as advisor on the establishment of the framework.

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