Kesko's Financial targets and achievements
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.
|
Indicator |
Target (from 1.12.2020) |
Level Achieved |
|
Comparable operating margin, % |
5.5% |
5.3% |
|
Comparable return on capital employed, % |
12.5% |
12.0% |
|
Interest-bearing net debt/EBITDA, excluding the impact of IFRS 16 |
at maximum 2.5 |
0.4 |
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.
Read more:
