The COVID-19 coronavirus epidemic began to affect our operations significantly from mid-March 2020 onwards. Despite ongoing worldwide efforts to stop the epidemic, we must prepare for the possibility that exceptional circumstances will last for some time, and all our businesses have adapted their operations accordingly.
Key measures taken:
- Ensuring the safety of customers and personnel
- Ensuring functioning purchasing and supply chains under all circumstances
- Growing online sales services fast
- Postponing development projects, focus on dealing with the situation
- Securing cash flow:
- Savings in personnel costs
- Cuts to other fixed costs
- Cutting cash flows from investing activities below €200 million in 2020
- Efficient management of credit risk and amounts due from customers
- Ensuring the availability and sufficiency of financing
- Growth strategy execution continues, but right now our focus is on crisis management
Stock exhange releases related to COVID-19 coronavirus epidemic:
Q3 2020 Interim Report
Positive profit warning on 17.9.2020: Read the stock exchange release.
Positive profit warning July 10, 2020: Read the stock exchange release.
Profit warning on March 18, 2020: Read the stock exchange release.
Megatrends affecting trading sector as published in the Annual Report 2019
The trading sector is affected by various global megatrends ranging from digitalisation to climate change. By identifying the trends that affect K Group’s operations, we can effectively anticipate future challenges and opportunities and
better respond to them.
- Intensifying price competition
- Global supply
Digital trade and services
- Growth in international and Finnish online trade
- Seamless online and mobile customer experience
- Impactful marketing that addresses individual needs
Increasingly individual customer behaviour
- Customers value convenience and quality
- Changes in purchase habits, individualisation
- Customers looking to optimise their lives
Customers hold the power
- Conscientious consumers seek information as the basis for their choices
- Peer experiences have a big impact on choices
- Customers want to affect selections
- Transparency in pricing, availability and the supply chain
- Responsibility and smart consumption significant criteria
Sustainability and strong brands as preconditions for success
- Good corporate governance
- Responsible operating principles
- Climate change and circular economy
- Transparency of purchasing chains
- Open dialogue with stakeholders
- Responsible investment
- Sustainable lifestyle: food, living and mobility
- Renewable energy
- Circular economy solutions
- Minimising food waste
Read more about opportunities and risks in our operating environment in Annual Report for 2019.