Kesko's Financial targets and achievements

We are moving strongly towards our financial targets and better returns on capital employed and equity through growth, increased profitability, synergies and working capital efficiency. Alongside growth, we continue to focus on higher cost-efficiency in all our operations to ensure competitiveness.

Our strong balance sheet enables both investments in strategic growth endeavours as well as good dividend payments. Between 2015 and 2020, we invested some €2.6 billion in our business operations and acquitisions, and divested some €1.0 billion worth of non-strategic business operations and real estate.

Kesko’s financial targets

The new medium-term financial targets for profitability, as approved by the Board of Directors of Kesko Corporation on 1.12.2020, are a comparable operating margin of 5.5% and a comparable return on capital employed of 12.5%. In terms of financial position, as before, the Group targets a maximum interest-bearing net debt/EBITDA ratio of 2.5, excluding the impact of IFRS 16. Kesko Group’s previous financial targets were a comparable operating margin of 5.0%, a comparable return on capital employed of 11.0%, and interest-bearing net debt/EBITDA of less than 2.5 excluding the impact of IFRS 16.


Target (from 1.12.2020) 

Level Achieved

Comparable operating margin, % 



Comparable return on capital employed, % 



Interest-bearing net debt/EBITDA, excluding the impact of IFRS 16 

at maximum 2.5 


Thanks to the successful execution of our growth strategy, we achieved the previous financial targets at the end of September 2020, sooner than anticipated. The Covid-19 epidemic and related changes in consumer behaviour have also had a positive impact on the company’s profit in 2020. Kesko estimates that less than half of its profit growth in 2020 is related to the Covid-19 epidemic. The new targets take into account economic development in Kesko's operating countries in upcoming years, which is generally expected to be moderate.

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