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Even though the market for car trade in Finland remains very challenging, Kesko’s car trade division has continued to produce excellent results in 2025. Johanna Ali has headed the division for some 18 months. She wants to change the image for car trade and offer a better customer experience: ”I  feel that customers are entitled to a much higher level of service in car trade than we in Finland are used to.”

The difficult market and ongoing major sector disruption have an impact also on Kesko’s car trade, says division President Johanna Ali: ”Obviously, weakened consumer confidence, uncertainty regarding the future and cautious consumer behaviour pose considerable challenges for our sector. Those challenges are not limited to new car sales – serious changes will also be needed in the service business.”

The Finnish market for car trade is typically measured by first registrations of passenger cars, which in 2024 totalled a bit over 70,000. Meanwhile, the market for used cars amounted to over 600,000 units, over half of which were sold by one consumer to another.

The number of new cars sold in Finland each year should total over 100,000 to ensure that the average age of vehicles on our roads does not rise too high. However, as Ali notes: ”The market for new cars has been historically low for the past few years, and this year it will barely reach the levels seen in 2024.”

K-Auto has responded to the challenges by strengthening its position in used car trade where volumes are steadier. The trusted K Group brand has been a big help in expanding used car operations.

Meanwhile, the service business poses bigger challenges in the long term: ”Inevitably, some of our current business is disappearing, with new car sales lagging behind average for so long, and electric cars – which do not need as frequent servicing or oil changes – becoming more common. This means we must find new business opportunities,” explains Ali.

K-Auto’s businesses also include the K-Lataus EV charging network, and the increasingly popular car leasing services, where Ali sees huge potential for development, while also acknowledging the competition.

K-Auto’s position constantly growing stronger

Typically, market shares in car trade are examined by car brands and models. Ali, however, can also present figures for K-Auto as an operator: “In new car sales, K-Auto’s market share hovered around 14% for a long time, but it has now risen above 17%. In used car sales, we have quickly risen to the TOP 5 and massively gained market share. We have also won over market share in car leasing, also for used cars.”

”I’m extremely proud of what our people have been able to achieve in a market that lends us absolutely no support. In Q3, K-Auto grew by nearly 20% in new passenger cars and commercial vehicles, versus the overall market growth of 2%. Meanwhile, in used cars, the market was flat year-on-year, yet we managed a growth of over 20%.”

Success is built on effective strategy, good product portfolio and the best people in the business

So what is the excellent performance in Kesko’s car trade based on? According to division President Ali, the key is an effective strategy made into a reality.

”For five years now, we have been pushing through an extensive transformation programme, in which we have made changes to organisational structures, updated our operating principles, and accelerated digitalisation. We have taken operational excellence to a totally new level, and that is now bearing fruit.”

Ali also acknowledges the importance of the products, strong brands, and a portfolio that covers a wide range of price points. “We are also the only operator in Europe that has such an extensive presence in all parts of the car trade value chain,” she notes.

Last but not least are the best professionals in the business. Under Johanna Ali, employee experience has become one of the strategic focus areas for Kesko’s car trade. ”In essence, car trade is a very human-focused business. In both sales and services, we employ a variety of amazing professionals, who make sure they are constantly up to date on latest technology. It is obvious that motivated people with a positive mindset do better work, and eventually, that also impacts our bottom line”, says Ali.

According to Johanna Ali, K-Auto has become more deeply integrated into Kesko and K Group in recent years: ”It is great, as it enables us to constantly learn from each other: in car trade, we can learn from the way retailers respond to local needs with their store-specific business ideas. Meanwhile, we can teach the rest of the Group the type of agility that is typical and crucial for a smaller business division.”

TEXT: Kirsi Suurnäkki-Vuorinen

Summary of an interview first published in the Kehittyvä kauppa magazine published by K-Retailers’ Association on 20 November 2025

The President of Kesko's biggest division, grocery trade, Ari Akseli was a guest on the popular Finnish Karon Grilli investor interview series in November 2025. In the interview, Akseli and author/journalist Karo Hämäläinen discussed, among other things, the actions Kesko has taken to turn around its market share development in grocery trade, the role of private label products, and the growing retail media business.

Key themes discussed in the interview are summarised in this blog post. The original Finnish-language interview can be found on Youtube here.

Measures taken to turn market share around are yielding results

Kesko’s strategic objective in grocery trade is to improve its market share. In recent years, the market share has decreased, totalling 33.7% in 2024 (source: Nielsen). According to Ari Akseli, Kesko has initiated various measures to address the trend, making notable investments in prices and in updating its store network, while also ensuring that the stores uphold a level of quality that sets them apart from the competition.

Investments in the store network: In recent years, Kesko has invested notably in developing its network of grocery stores, especially in the hypermarket segment, where growth in Finland is the strongest. Kesko did not open any new hypermarkets between 2018 and 2023, partly due to Covid-related uncertainty, says Akseli. However, now there are several new K-Citymarket stores in the pipeline, located in urban growth centres. Most recently Kesko announced plans for new hypermarkets in Helsinki, Espoo and Vantaa. Ari Akseli notes that Kesko has won over market share in the hypermarket segment this year, and done well in the supermarket segment, while in the neighbourhood store segment, focus has been on ensuring a healthy and viable store network.

Investments in store prices: Kesko’s approach to price is described by Ari Akseli as follows: keeping the prices of everyday basics at a level that does not form an obstacle for customers, having the best discounts and offers in the market, and offering a variety of targeted customer-specific benefits based on purchase data. At the start of the year, K Group reduced prices on over 1,000 branded and private label products. This represented a notable joint investment by Kesko and the K-retailers as well as suppliers wishing to increase their volumes and market share. Akseli notes that in the third quarter of 2025, price increases in K Group grocery stores were clearly more moderate than the overall market increase.

Although operating profit for Kesko’s grocery trade has decreased this year, Akseli argues that the division’s profitability remains good. There are costs related to the investments made in price and store network development, but those investments are expected to support sales growth going forward. Kesko’s current guidance says that comparable operating margin for the grocery trade division is estimated to stay clearly above 6% also in 2026.

K-retailers lend a competitive advantage for Kesko

When asked about the collaboration between Kesko and K-retailers, Ari Akseli notes that the retailers lend a significant competitive advantage for Kesko. They uphold the quality of the stores, as each retailer wants to maximise customer satisfaction and sales in their store. Retailers are also able to respond immediately to any changes in the market, and communicate related needs to Kesko directly. In turn, Kesko strives to support the retailers’ profitability by offering tools and solutions that help them e.g. optimise their selections, reduce product waste, and increase customer satisfaction, average purchase and sales mix. According to Akseli, cooperation between Kesko and the retailers is good and has been tightened further in recent years. He says that the retailers also understand the need for price investments and why Kesko needs to maintain a good level of profitability in grocery trade – the latter enables necessary investments in the store network and in the development of grocery trade IT systems and logistics.

Private label products complement store selections – focus on specific product categories in hypermarket non-food trade

Private label products have been a hot topic in Finland recently, although their share of grocery sales (some 20%) is much lower than in many other European countries. For K Group, Ari Akseli explains, it is important to offer a wide selection of both branded and private label products at various price points. He notes that Kesko often works together with suppliers in developing new products for Kesko’s private label ranges, and such collaborations may benefit the supplier by enabling them to increase production capacity, for example. The current Finnish government has been critical towards private labels and is considering introducing restrictions on e.g. the display of private label products in its amended Food Market Act. Ari Akseli notes that in K Group stores, product placement is based on customers easily finding their favourite products, thus avoiding unnecessary food waste. Should there be restrictions on private labels, Akseli would not expect them to weaken Kesko’s profitability: however, customers could see their grocery bills go up.Kesko’s private labels – Pirkka, Pirkka Parhaat and K Menu – are very popular among customers. They also help increase customer loyalty: annual average purchase is doubled among customers buying Pirkka Parhaat products. A new concept for flower sales is currently being rolled out in K-Citymarket stores, and the results have been very promising.

The non-food trade in K-Citymarket hypermarkets is a profitable business for Kesko, even though the level is not at the same record heights as during the pandemic. Akseli explains that of the non-food sales, approximately half comes from steady “near food” items, such as detergents and personal hygiene products. The rest comes from the sales of clothing, home supplies, sports equipment, consumer electronics and flowers. Kesko has made choices regarding focus areas in non-food selections: for example, in clothing, focus will be more on everyday items such as socks and underwear. A new concept for flower sales is currently being rolled out, and according to Ari Akseli, it has resulted in double-digit sales growth.

Retail media is a growing profitable business

Entirely new business is also being introduced alongside traditional grocery trade operations. Retail media is a growing, profitable business area that allows partners to market their products and services in Kesko’s channels, such as the K-Ruoka website and mobile app and digital instore displays. Marketing production costs are low compared to traditional media, and results easily and immediately measured through product sales. Ari Akseli notes in the interview that media sales amount to tens of millions of euros at the moment, and that demand for retail media services is growing fast.

Kesko’s net sales and profit grew in the third quarter of 2025. Net sales for the quarter totalled €3,227 million, up by 6.6% year-on-year, or by 3.5%. in comparable terms. Our comparable operating profit totalled €208 million, representing an increase of €6.5 million. Positive development was seen in all three divisions even though the market remained relatively challenging.

In the grocery trade division, net sales totalled €1,645 million and comparable operating profit €118 million. K Group grocery sales increased by 3.6%. Strong demand continued in online grocery, and sales there grew by 9.9%. Sales for the foodservice business decreased by 0.2% - sales development was close to market pace. Price inflation for groceries stood at 2.7%.

Our objective in grocery trade is to strengthen the market share of our grocery stores by focusing on quality, price and store network, while at the same time maintaining our good profitability. Results from our strategy execution measures have been promising: market share development for our grocery stores has strengthened over the course of this year, and in the hypermarket segment, the K-Citymarket chain won over market share in January-September. Customer flows have grown thanks to campaigns, but basic everyday purchases are also up. Although the grocery trade market remains price driven, we see signs of demand growing for higher quality products and services.

In the building and technical trade division, net sales increased and totalled €1,234 million. Comparable operating profit for the division totalled €72 million, representing an increase of €1.6 million. The joint venture Kesko Senukai reported its share of result, which totalled €7.5 million in the third quarter. Net sales grew in building and home improvement trade underpinned by acquisitions, while decreasing in comparable terms. Sales have picked up in Denmark, Poland and the Baltic countries in particular. Net sales for technical trade increased, but sales margin weakened despite the increase in sales due to price competition, which continued tight in a challenging market.

The gradual recovery in the construction cycle has continued, but new housing construction in particular was weaker than anticipated also in the third quarter. The biggest construction project in Kesko’s history, the joint Onninen and K-Auto logistics centre Onnela in Hyvinkää, Finland was completed in August, and came in clearly below the original cost estimate. The new centre will enable Onninen’s growth in the future.

In the car trade division, both net sales and profit grew significantly in the third quarter. Sales grew in all three car trade businesses, namely new cars, used cars, and services. We clearly outperformed the market in both new and used car sales. Net sales for the division grew by €60 million and totalled €355 million. The division’s comparable operating profit totalled €23 million, with a strong operating margin of 6.4%. In sports trade, sales and profit decreased, but our market share grew.

We are specifying our profit guidance, and now estimate that Kesko’s 2025 comparable operating profit will be in the range of €640–690 million.

In 2026, we estimate that Kesko’s operating environment and profit will improve in all divisions and all operating countries.

KESKO KEY FIGURES IN JUNE-SEPTEMBER 2025:

• Group net sales in July-September totalled €3,227.3 million (€3,026.6 million); reported net sales grew by 6.6% while comparable net sales grew by 3.5%

• Comparable operating profit totalled €208.1 million (€201.5 million); the comparable operating profit includes the share of result from Kesko Senukai for January-September, totalling €7.4 million, of which the share of result for July-September was €7.5 million (€4.8 million)

• Operating profit totalled €204.0 million (€202.1 million)

• Cash flow from operating activities totalled €287.7 million (€285.6 million)

• Comparable earnings per share €0.36 (€0.34); reported earnings per share €0.35 (€0.35)

KESKO KEY FIGURES IN JANUARY-SEPTEMBER 2025:

• Group net sales in January-September totalled €9,243.8 million (€8,879.5 million); reported net sales grew by 4.1%, while comparable net sales grew by 2.0%

• Comparable operating profit totalled €480.4 million (€479.3 million)
  Operating profit totalled €471.2 million (€458.5 million)

• Cash flow from operating activities totalled €587.1 million (€707.2 million)

• Comparable earnings per share €0.78 (€0.80); reported earnings per share €0.77 (€0.76)

See all Kesko Q3/2025 result presentation materials

As one of the leading trading sector operators in Northern Europe, Kesko transports vast amounts of goods to its stores and customers every year. This is why efficient, smart logistics is a key factor in ensuring our competitiveness, growth and good profitability. Kesko has made significant investments in its logistics operations in recent years, most notably building a massive new logistics centre for Onninen’s technical trade and car trade spare parts in Finland. Kesko has also invested in efficient centralised warehousing and advanced IT solutions, robotics and automation in its grocery trade.

Massive new logistics centre ensures Onninen does not have to worry about bottlenecks once construction in Finland takes off again

The Onnela logistics centre in Hyvinkää was the biggest construction project in Kesko’s history. The massive building, located on a 42-hectare site, covers 85,000 square metres – equivalent to about 12 football (soccer) fields. Construction was completed in August, and nearly 2,000 truckloads of goods are currently being moved in. Onninen’s technical trade logistics and K-Auto’s spare parts logistics will begin operations at Onnela in Q1 next year, with a workforce of 400–500 employees.

Construction on the centre was completed on schedule and clearly below the budget of €300 million. Kesko financed the Onnela investment with an issue of a green bond.  

From on investor stand point, the investment in a bigger and more modern technical trade logistics facility is important: since Kesko acquired the company in 2016, Onninen’s business has grown significantly. When construction last hit peak levels, logistics created some bottlenecks for Onninen. With the new facility, this should no longer be an issue when the construction market properly takes off again.

The investment in Onnela enables future growth for Onninen Finland and K-Auto’s car trade service business, while improving logistic services. 

The new, much bigger logistics centre will allow Onninen to expand its product selections. It removes the need for satellite warehouses, with all items delivered to the customer in a single delivery. Onnela’s Warehouse Management System is more user-friendly, and the higher level of automation enables faster picking of products, with fewer mistakes and better ability to tailor deliveries based on customer needs. Onnela also promotes the sales of value-added  services, such as pre-installation, tool rental, and assembly. For the workers, Onnela offers better fire and occupational safety, with improved ergonomics.

Once Onnela is up and running, Onninen’s current logistics facility – which is also located in Hyvinkää – will be taken over by K-Rauta. Meanwhile, K-Auto’s logistics for car spare parts will move to Onnela from Sweden, thus improving availability and enabling one-day deliveries.

Efficient logistics support the good profitability in Kesko’s grocery trade

Kesko’s logistics handle one-third of all food in Finland. Every day, 700 trucks deliver goods to some 1,100 K Group grocery stores and Kespro’s foodservice customers – such as  restaurants, lunch cafeterias, schools, hotels and hospitals – around Finland. The logistics chain centres around 160,000 square metre central warehouse facilities in Vantaa, supported by 10 regional logistics terminals.

Efficient logistics is one of the cornerstones for the good profitability in Kesko’s grocery trade. The efficiency is underpinned by centralised warehousing, high volumes, full delivery loads, and the utilisation of advanced replenishment systems, automation and AI.

Kesko’s central warehouse houses 21,500 SKUs (stock keeping units), which are transported from Vantaa to K Group grocery stores across Finland. Kesko strives to reduce logistics emissions by introducing more EVs for transports.

Kesko’s grocery logistics model, in which multi-temperature trucks make joint deliveries to both K Group grocery stores and Kespro’s foodservice customers across the country is unique and well-suited for a country with such long distances as Finland. On their way back to Southern Finland, the trucks handle inbound transportation from suppliers and reverse logistics from customers. To reduce transport emissions, Kesko is set to increase the number of electric transport vehicles to 200 by 2030.

Images of Onnela by Saku Metsärinne

We organised a visit to our logistics facilities in Onnela and Vantaa as part of our investor event in September 2025. All presentation materials are available on the event web page. 
 

Kesko will publish its results for the third quarter of 2025 on Thursday, 30 October 2025, at around 8.00 am Finnish time. An English-language audiocast/teleconference for investors and analysts will be held at 9.00 am Finnish time. Below is recap of main news and events in Q3. 

"Kesko’s sales and result were at a good level in the first half of 2025 considering the fact that consumer confidence remained low in all our operating countries. Our Q2 net sales totalled €3,189 million, up by 3.1% year-on-year. In comparable terms, net sales increased by 1.3%. Our comparable Q2 operating profit stood at €177 million. The comparable operating profit increased when excluding the impact from the share of result from Kesko Senukai. As planned, we completed the three acquisitions of Roslev Trælasthandel, CF Petersen & Søn and Tømmergaarden in Denmark during the first year-half. Following the acquisitions, Kesko’s position in the Danish building and home improvement trade market will strengthen considerably, and our market share will rise to nearly 20%, thus supporting overall growth for Kesko.

In the grocery trade division, net sales amounted to €1,606 million, and comparable operating profit to €111 million. Comparable operating profit improved in grocery store chain operations, but decreased in Kespro and K-Citymarket’s non-food trade. The price programme we launched in January has proceeded according to plans and both the average purchase and customer flows have grown. The loss of market share in grocery trade has become less pronounced, and in the hypermarket segment, K-Citymarket won over market share in Q2. K Group grocery sales increased by 2.0%, impacted by the timing of Easter, which fell on April this year versus March last year. Online grocery sales grew by 10.1%. Sales for the foodservice business decreased by 0.7%, but the business still once again outperformed the market. Grocery price inflation was at 2.3%. Our objective in grocery trade is to strengthen our market position by focusing on quality, prices and our store network while still maintaining good profitability.

In the building and technical trade division, net sales increased and totalled €1,237 million, while the comparable operating profit stood at €51 million. Excluding the impact of the share of result from Kesko Senukai, the division’s comparable operating profit improved slightly. Kesko Senukai did not report its financial figures for the first half of the year as scheduled, which is why in Kesko's reporting the share of result from Kesko Senukai is €0.0 million, versus €6.3 million in the comparison period. The gradual recovery in building and home improvement trade and acquisitions in Denmark lent support to net sales and profit. Gradual recovery in the construction cycle has continued, but the pace has been slower than previously anticipated in all Kesko operating countries, especially in new building construction.

In the car trade division, both net sales and profit increased notably in the second quarter, especially thanks to good performance in new car sales. We also outperformed the market in used car sales, while service sales were down. Net sales for the division totalled €352 million and comparable operating profit €22 million. Sales and profit in sports trade increased.

We are specifying our profit guidance, and now estimate that the comparable operating profit for 2025 will be in the range of €640 – 700 million, while the previous guidance was €640-740 million."

KESKO KEY FIGURES IN APRIL-JUNE 2025:

• Group net sales in April-June totalled €3,188.8 million (€3,093.4 million); reported net sales grew by 3.1% while comparable net sales grew by 1.3%

• Comparable operating profit totalled €176.7 million (€178.3 million); comparable operating profit excluding the share of result from Kesko Senukai increased (4-6/2024: €171.9 million excl. Kesko Senukai)

• Operating profit totalled €177.9 million (€159.2 million)

• Cash flow from operating activities totalled €323.9 million (€309.0 million)

• Comparable earnings per share €0.29 (€0.30); reported earnings per share €0.29 (€0.26)

KESKO KEY FIGURES IN JANUARY-JUNE 2025:

• Group net sales in January-June totalled €6,016.5 million (€5,852.9 million); reported net sales grew by 2.8%, while comparable net sales grew by 1.2%

• Comparable operating profit totalled €272.3 million (€277.7 million); comparable operating profit excluding the share of result from Kesko Senukai increased

• Operating profit totalled €267.2 million (€256.4 million)

• Cash flow from operating activities totalled €299.5 million (€421.6 million)

• Comparable earnings per share €0.42 (€0.46); reported earnings per share €0.42 (€0.42)

See all Kesko Q2/2025 result presentation materials

Kesko will publish its results for the second quarter of 2025 on Tuesday, 22 July, at around 8.00 am Finnish time. An English audiocast/teleconference for investors and analysts will be held at 9.00 am Finnish time, and can be accessed here.

NEWS, FINANCIALS AND SHARES

• Kesko once again published a Data Balance Sheet report, detailing the ways in which it uses the massive amounts of data at its disposal to create value to customers, businesses and shareholders in innovative and sustainable manners. (report)

• Kesko issued a voluntary report on its tax footprint and other country-specific tax information in compliance with the recommendations of the GRI 207 standard. (report)

• Shares:

  • Change in the holding of Kesko Corporation's treasury shares (release)

  • Transfer of shares held as treasury shares (release)

• Presentation for Kesko’s Q2 investor roadshow meetings. (presentation)
  
  

SALES DEVELOPMENT

• Kesko’s sales in April. (release)

• Kesko’s sales in May. (release)

Sales figures for June will be released in mid-July.

SUSTAINABILITY

• Kesko ranked as the most sustainable company in its sector in Europe on the ‘Europe 50’ listing. The sustainability media and research organisation Corporate Knights ranked 50 of Europe’s most sustainable companies for the first time ever. On the overall list, Kesko ranked 19th. (release)

• Kesko has taken further measures to reduce both the use of plastic packaging and the sugar, salt and saturated fat content of its grocery trade private label products. (release, release)

• Kesko accelerates the electrification of its transports in grocery trade. The number of electric trucks and vans used in Kesko’s grocery logistics is set to rise to 70 by the end of 2026. By 2030, electric vehicles are estimated to make up some 30% of the transport fleet in Kesko’s grocery trade. (release)
  
  

BUILDING AND TECHNICAL TRADE

• Acquisitions in Denmark:

  • Kesko completed the acquisition of CF Petersen & Søn A/S on 30 April 2025. The acquired company is a B2B-focused builders’ merchant that holds a market share of some 6% in the Zealand area. Its figures have been consolidated into Kesko Group’s reporting as of 1 May 2025. (release)

  • Kesko completed the acquisition of Tømmergaarden A/S on 28 May 2025. The acquired company is a B2B-focused builders’ merchant that holds a market share of some 10% in Northern and Central Jutland. Its figures have been consolidated into Kesko Group’s reporting as of 1 June 2025.(release)

Following the two acquisitions as well as the acquisition of Roslev Trælasthandel A/S in January, Kesko’s Danish subsidiary Davidsen now hosts an extensive network of building and home improvement trade stores across the country.  

CAR TRADE

• Investor presentation by Iiro Määttänen, the Director in charge of Kesko’s K-Lataus EV charging network. (presentation)

Sustainability is a crucial aspect for investors and other stakeholders, and sustainability reporting reflects a company's commitment to transparency and responsible business practices. Kesko has a decades long history in providing information on its sustainability work, its objectives, and its results. The new EU Corporate Sustainability Reporting Directive enhances the consistency and comparability of sustainability reporting among large European listed companies such as Kesko. Beyond regulated reporting, Kesko also offers a wide range of additional sustainability information for investors.

Those interested in Kesko’s sustainability efforts should definitely visit the dedicated sustainability section on our website, which offers information on, for example, our sustainability strategy and its four focus areas, as presented below:

The focus areas for Kesko’s sustainability strategy, last updated in autumn 2024, are climate and nature, value chain, people, and good governance

Each strategic focus area has its own subsite that digs deeper into the theme. For example, on the climate and nature subsite, you can read more about Kesko’s emissions targets and efforts towards biodiversity, while the value chain subsite provides information on sustainable selections and the policies guiding Kesko’s sourcing.

Our sustainability pages also provide information on the international sustainability indices and assessments Kesko is included in, which indicate that Kesko has proven it can meet an extensive and varied range of sustainability criteria.

Throughout the year, we also provide information on current sustainability themes in our news and releases. Last year, for example, we published news items on ways to reduce energy consumption in our stores by updating refrigerating systems and shared our plans for increasing the number of electric vehicles used in our logistics. You can subscribe to our sustainability-themed news to be sent directly to your email. We also post sustainability-related updates on our social media channels.

From voluntary to a common EU-regulated sustainability reporting

Kesko published its first sustainability statement in line with the EU Corporate Sustainability Reporting Directive (CSRD) in spring 2025, as part of the Report by the Board of Directors in the 2024 financial statements. The sustainability statement can be found in Kesko’s 2024 Annual Report.

Kesko published its first sustainability statement in compliance with the EU Corporate Sustainability Reporting Directive in spring 2025

The new regulations aim to standardise sustainability reporting by large European listed companies such as Kesko, making the data reported by the companies more comparable. Our sustainability statement offers information on, for example, Kesko’s double materiality assessment and the risks and opportunities related to sustainability.

Even before the introduction of new regulations, Kesko’s history in voluntary sustainability reporting goes back decades: our first  Corporate Responsibility report was published in 2000, and from 2002 onwards data in the report was assured by an independent body. All past corporate responsibility and sustainability reports can be found on our annual report page.

Kesko’s sales and profit were at a good level in the first quarter of 2025 considering the fact that it is typically the slowest quarter for the company, and our operating environment continued to be challenging. Our net sales for the quarter totalled €2,827.7 million, up by 2.5% on the previous year, or by 1.1% in comparable terms. Kesko’s comparable operating profit totalled €95.6 million.

At the end of January, we completed the acquisition of the Danish Roslev Trælasthandel, and the company’s figures have been consolidated into Kesko’s reporting as of 1 February 2025. At the end of March, the Danish competition authorities also approved the acquisition of CF Petersen & Søn with no conditions, and that acquisition is expected to be completed on 30 April 2025. The third acquisition – Tømmergaarden – is estimated to be completed during the first half of 2025. The three acquisitions will significantly strengthen Kesko’s position in the Danish building and home improvement trade market.

In the grocery trade division, net sales totalled €1,486.5 million and comparable operating profit €72.8 million. Net sales and profit decreased year-on-year partly due to the timing of Easter, which fell on April this year, while in 2024 its impact was seen in March. At the start of January 2025, we responded to consumer demand by launching an extensive price programme, which has strengthened our customer flows. Results from the price programme have been promising, but as expected, the programme did have a negative impact on profit. K Group grocery sales decreased by 1.4%. Online grocery sales grew by 5.6%. Sales in the foodservice business decreased by 0.5%, still outperforming the market. Price inflation for groceries stood at 1.8%. Our objective in grocery trade is to strengthen our market position by investing in quality, price, and our store network while maintaining a good level of profitability.

In the building and technical trade division, net sales increased and totalled €1,033.1 million, with a comparable operating profit of €11.7 million. Net sales and profit were underpinned by a pick-up in building and home improvement trade and acquisitions in Denmark. The construction cycle is turning, and sales have picked up especially in the B2B segment in building and home improvement trade. In Finland, sales in building and home improvement trade have grown especially in heavy building materials such as timber. Sales typically tend to pick up in other product categories, such as interior decoration, a little later. Technical trade is post-cyclical, and typically grows stronger some 6 months after a turnaround in building and home improvement trade B2B sales. In Denmark and Norway, building and home improvement trade sales grew markedly, and technical trade sales in Norway were also up. Sales development in Sweden and Poland was muted.

In the car trade division, both net sales and profit increased in the first quarter, thanks in particular to good new car sales. Sales also grew in used cars and services. Net sales for the division totalled €313.9 million, and comparable operating profit €17.9 million. The balanced and comprehensive product and service portfolio underpins the division’s good performance through varying market conditions.

We repeat the profit guidance issued in February, and expect Kesko’s comparable operating profit to improve and be in the range of €640–740 million in 2025.

KESKO KEY FIGURES IN JANUARY-MARCH 2025:

• Group net sales in January-March totalled €2,827.7 million (€2,759.5 million); reported net sales grew by 2.5% while comparable net sales grew by 1.1%

• Comparable operating profit totalled €95.6 million (€99.5 million)

• Operating profit totalled €89.4 million (€97.2 million)

• Cash flow from operating activities totalled €-24.5 million (€112.6 million)

• Comparable earnings per share €0.13 (€0.16); reported earnings per share €0.12 (€0.15)
  
  

See all Q1 results release  materials

Kesko will publish its results for the first quarter of 2025 on Tuesday, 29 April 2025, at around 8.00 am Finnish time. An English audiocast/teleconference for investors and analysts will be held at 9.00 am Finnish time and can be accessed here.

NEWS, FINANCIALS AND SHARES

• Kesko’s Annual General Meeting was held on 24 March 2025. The AGM resolved, among other things, to distribute a dividend of €0.90/share for 2024, and elected 7 members to Kesko’s Board of Directors for a one-year term of office. (release)

• Kesko’s Annual Report for 2024 was published in March. The report comprises a general review of the company’s strategy and businesses, a Corporate Governance Statement and Remuneration Report, as well as the financial statements section, which for the first time also includes a Sustainability Statement compliant with the new EU Corporate Sustainability Reporting Directive. (release)

• Shares:

  • Share-based commitment and incentive plans for Kesko President and CEO 2025-2028. (release)

  • Share-based commitment and incentive plans for top management and key persons 2025-2028. (release)

  • Realisation of the share-based commitment and incentive plans PSP 2023-2026, KPSP 2022, and RSP 2022 (release) and RSP 2024 (release).

  • Change in the holding of Kesko’s treasury shares. (release)

• Presentation for Kesko’s Q1 investor roadshow meetings. (presentation)

• Kesko’s Investor Relations work receives recognition in both Finland and abroad. (release)
  
  

SALES DEVELOPMENT

• Kesko’s sales in January. (release)

• Kesko’s sales in February. (release)

Sales figures for March will be released in mid-April.

SUSTAINABILITY

• Kesko was ranked the best company in the world in the “Consumer Staples” sector and 36th overall on the ‘Global 100 Most Sustainable Corporations in the World’ listing published annually at the World Economic Forum in Davos. Kesko is the only company in the world to have made the list every year since its inception in 2005. The ranking is based on a sustainability assessment of over 8,300 listed companies, measured using 25 indicators related to environmental and social responsibility and good corporate governance. (release)
  
  

GROCERY TRADE

• K Group cuts prices for over 1,200 everyday staples in its grocery stores as part of a long-term price programme. Price reductions on branded products average 4–6%, but can amount to as much as 15–20%, while price cuts for K Group’s own Pirkka products average 9-12%. Kesko and K Group grocery retailers will jointly invest nearly €50 million in the price programme during 2025. (release and IR blog post)

• K Group’s share of the Finnish grocery trade market in 2024 was 33.7% according to statistics published by Nielsen. Market share decreased on 2023, but the decrease in 2024 was less pronounced than the year before. Kesko and K Group continue to focus on quality, improving price competitiveness, and updating the grocery store network in order to turn around the market share trend. (IR blog post)
  
  

BUILDING AND TECHNICAL TRADE

• Kesko seeks international growth in building and technical trade, says division President Sami Kiiski. Despite the difficult construction market of recent years, Kesko has managed to maintain good profitability, conduct acquisitions and make notable investments in logistics, which all position the company favourably for future growth. In our investor blog interview, Kiiski says that building and technical trade could eventually become Kesko’s biggest division. (IR blog post)

• Acquisitions in Denmark:

  • Kesko completed the acquisition of Roslelv Trælasthandel A/S on 31 January 2025. This is the first of the three Danish acquisitions announced by Kesko in August 2024 to have been completed. Roslev has been consolidated into Kesko Group’s financial reporting as of 1 February 2025. (release)

  • Kesko also received approvals from Danish competition authorities for the acquisition of CF Petersen & Søn A/S on 30 March 2025. The acquisitions of both CF Petersen & Søn and Tømmergaarden A/S are expected to be completed in Q2. Combined, the three acquisitions are set to significantly expand Kesko’s building and home improvement trade operations in Denmark. (release)

• Building and home improvement trade operations in Sweden are now concentrated under the K-Bygg brand, which serves both building professionals and consumers. (release in Swedish)
  
  

CAR TRADE

• K-Auto is now the fourth biggest seller of used cars in Finland. K-Auto's used car business continued to grow faster than the market in 2024, with the number of used cars sold increasing by nearly half over the past three years. The company plans to expand its store network and focus on used car leasing services and increasing the selection of used vans in 2025. (release in Finnish)