K Group’s building and technical trade division is the leading operator in Northern Europe. Despite the exceptional circumstances, we continued the execution of our country-specific strategies in 2020, and the division’s profitability rose to a new level. The Covid-19 pandemic and related restrictions impacted our operations across Northern Europe. With people working from and spending more time at home and spending money domestically, consumer demand grew, especially in Finland, Sweden and Norway. Sales stayed at a good level also in B2B trade, as most construction sites remained open as usual.
The key to our strategy execution is to acknowledge the differing needs of our three customer segments – technical professionals, professional builders, and consumers – in all channels. B2B operations account for nearly 70% of our net sales. Less than half of our profit improvement was attributable to the construction and renovation boom caused by the pandemic. We have also sought synergies within and between the operating countries in areas such as concept, digital service and own brand development. In 2020, we continued targeted acquisitions in line with our strategy in Norway and Sweden, as well as the integration of previously acquired businesses.
WHAT WE ARE DOING
Technical trade customers
DIY and professional builders
Building and technical trade net sales, operating profit and operating margin, rolling
The building and technical trade strategy review can be read in Kesko's 2020 Annual Report.
Information on the impacts of the Covid 19 pandemic on Kesko’s businesses can be found under the Operating environment section.
|K Group’s building and technical trade||Number of stores||
Retail and B2B sales,
|Rautakesko B2B Service||-||249.1||-2.5|
|Leisure trade, Finland||103||264.2||-5.9|
|Onninen and MIAB, Sweden||3||108.3||-0.8|
|Byggmakker and Carlsen Fritzoe, Norway||86||717.2||1.0|
|Onninen, Baltic countries||17||79.9||-5.7|
|Other countries, total||213||1,811.4||2.0|
|Building and technical trade exl. Kesko Senukai, total||503||4,458.4||4.3|
|Building and technical trade incl. Kesko Senukai, total||562||5,380.8||4.7|
In addition, building and technical trade stores offer e-commerce services to their customers.
|Net sales, € million||3,639.5||3,472.8|
|Building and technical trade excl. speciality goods trade and Kesko Senukai||3,424.3||3,1261|
|Speciality goods trade||215.2||346.7|
|Operating profit, comparable, € million||187.7||115.9|
|Building and technical trade excl. speciality goods trade and Kesko Senukai||169.4||98.5|
|Speciality goods trade||7.4||9.5|
|Operating margin, comparable, %||5.2||3.3|
|Building and technical trade excl. speciality goods trade and Kesko Senukai||4.9||3.2|
|Speciality goods trade||3.4||2.7|
|Return on capital employed, comparable, %, rolling 12 months||11.2||7.4|
|Capital expenditure, € million||186.3||332.7|
|The change in Kesko Senukai’s consolidation method from a subsidiary to a joint venture as of 1 July 2020 has impacted the performance indicators for the building and technical trade in the segment information. In the segment information for the building and technical trade, performance indicators are illustrative except for the balance sheet indicators and personnel numbers.|
|Owned properties, capital, € million||159||222|
|Owned properties, area, 1,000 m²||230||235|
|Leased properties, area, 1,000 m²||865||1,253|