Investor blogs and podcasts

Kesko will publish its Q1/2023 report on Friday, 28 April 2023, at around 8.00 am Finnish time. An English audiocast/teleconference for investors and analysts will be held at 9.00 am Finnish time.   

NEWS, FINANCIALS AND SHARES 

• Kesko’s 2022 Annual Report was published, comprising multiple sections and detailing the company’s progress in, for example, strategy execution, financial performance, sustainability work, and data utilisation. (See full report)

• Kesko’s Annual General Meeting was held on 30 March, and it resolved, among other things, to distribute dividends of €1.08 per share for 2022, to be paid in four instalments. (AGM resolutions).

• Sami Kiiski was appointed as President of Kesko’s car trade division and a member of Group Management Board as of 1 June as Matti Virtanen retires. Kiiski currently heads Kesko’s sports trade. Sports trade will become part of Kesko’s car trade division. (release)

• Establishment of new share-award plans. (release)

• Realisation of Kesko’s existing share award plans. (release)

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

• Kesko’s Investor Relations received multiple awards thanks to focused efforts to offer the best possible investor service to all investor groups, including the rapidly growing number of Finnish retail investors. (blog post)
  
  

SALES DEVELOPMENT

• Kesko’s sales grew in January. (release)

• Kesko’s sales grew in February. (release)

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

DIGITALISATION AND CUSTOMER EXPERIENCE

• Kesko combines its Finnish customer loyalty programme with share ownership in a ground-breaking new model. (release)

• Kesko published its second Data Balance Sheet report as part of its annual reporting, expanding the scope to cover the business-driven utilisation of data and digitalisation in all three business divisions. (blog post)

SUSTAINABILITY 

• Kesko ranked as the most sustainable grocery trade company in Europe and third highest in its sector globally on the 2023 ‘Global 100 Most Sustainable Corporations in the World’ listing issued by Corporate Knights. Kesko is the only company in the world to have made the list every year since its inception in 2005. (release)

• The global environmental organisation CDP named Kesko a ‘Supplier Engagement Leader’ in recognition of Kesko’s exemplary encouragement of suppliers to take climate action. (release)

• See also the ‘Sustainability’ section of Kesko’s 2022 Annual Report for a comprehensive review of sustainability strategy execution.
  
  

GROCERY TRADE

• In an effort to steer Finnish eating habits in a healthier direction, K Group is reducing the amount of salt, sugar and saturated fats in its own brand products, promoting the use of more fruit and vegetables, and increasing the use of labelling for healthier food options. (release)

BUILDING AND TECHNICAL TRADE 

• Kesko subsidiary Onninen acquired Elektroskandia Norge AS, one of the main distributors of electrical products in Norway. The acquisition will strengthen Onninen’s position in Norwegian technical trade. Following the acquisition, Kesko's sales in Norway approach €1.5 billion. (release)

• Onninen also agreed to acquire Zenitec, a Swedish solar power system wholesaler. (release)

• Building and technical trade update by division President Jorma Rauhala. (presentation)

CAR TRADE

• Volkswagen continues to be the market leader in electric cars in Finland, with a 13.4% market share of full electric car registrations in 2022. Overall, Volkswagen was the second most registered brand of passenger cars in Finland in 2022. (release in Finnish) 

In early March, Kesko published its second-ever Data balance sheet report as part of its Annual Report. Kesko remains the only Finnish listed company to issue a voluntary report detailing how it is utilising the data it possesses to drive business. Data and digitalisation were once again highly important for Kesko in 2022, as they helped the company navigate in a rapidly changing operating environment.

Data plays a central role in aspects such as creating a good customer experience, managing stores, online sales operations and supply chains, and also in improving profitability. Our report provides more information on how this is done, with interesting case studies. We explain, for example, how we are utilising and upgrading the digital ecosystem in our grocery trade division, to create value to various stakeholders such as customers, K-retailers, suppliers of goods and services, and other partners.

Data and digitalisation are crucial for all three business divisions

Kesko’s first-ever Data balance sheet report was published last year. That report focused mainly on our grocery trade division. The second report has a wider scope, expanding the point of view also to building and technical trade and car trade. For example, one key element in digital services in building and technical trade is offering extensive product information, images and instructions for installation. The division has also used digitalisation to provide smooth and convenient purchase processes for its customers. In car trade, an AI based tool developed by Kesko determines the correct price for each used car, based on regional data concerning current trends in e.g. demand and sales completed.

In addition to offering benefits for business and customers, data also involves threats and risks, which Kesko actively manages. Robust data protection, cyber security and a modern, continuously evolving technological infrastructure form a strong foundation for everything else. Transparent communication about data management and utilisation and sustainable data-driven value creation are  in line with data economy that values the rights of the individual.

See Kesko’s Data balance sheet report as part of our Annual Report!

The Finnish Foundation for Share Promotion handed out awards for outstanding Finnish listed companies at the end of January. Kesko’s investor relations were honoured with awards for best investor web pages and best head of investor relations for Hanna Jaakkola. The achievements are based on determined work over the years to offer the best possible investor service to all investor groups in all channels.

Kesko’s Vice President of Investor Relations Hanna Jaakkola got to collect two awards at the gala event hosted by the Finnish Foundation for Share Promotion

The Finnish Foundation for Share Promotion is a neutral foundation that aims to promote retail investment and develop the securities markets in Finland. To promote best practices in e.g. investor relations and sustainability reporting, the foundation hands out awards to listed Finnish companies that excel in these areas.

Kesko’s investor webpages ranked No 1 among Finnish large caps

The Finnish Foundation for Share Promotion and the Finnish Society of Financial Analysts have been handing out awards for the best investor web pages since 1999 in an effort to promote best practices. A key criterion for the best investor web pages is that they enable investors to find all relevant information as easily as possible.

Kesko has done well in the competition over the years, and is in fact the only company in its category to have made the Top 3 for six consecutive years. This year, Kesko received the highest overall score of all reviewed companies, and was awarded as best in the large cap category.

In all investor communications, Kesko aims to present relevant information succinctly and effectively, in a manner that is easy to understand. The same principles apply to its investor web pages.

We constantly develop and add new topical content to the web pages. In recent years, our particular focus has been on ensuring that investors can find information on how exceptional circumstances, such as the pandemic and the war in Ukraine, may impact Kesko’s business.

Typically the same themes and issues interest both big international investors and Finnish retail investors, which is why another key priority with our investor web pages is ensure all investors have equal access to relevant information.

Hanna Jaakkola named IRO of the Year

For the first time ever, an award was also given in the category of best head of investor relations. The competition jury selected four finalists, and the winner was chosen by public vote, with Kesko’s Hanna Jaakkola winning the title.

Jaakkola joined Kesko as Vice President of Investor Relations in autumn 2019. The competition jury noted that since then, Kesko’s shareholder base has more than doubled, which is an extraordinary achievement.

Jaakkola was thrilled and proud to receive such recognition:
”My work is made easier by the fact that everyone in Finland knows and has shopped at K-stores. Kesko also pays good dividends. This is my dream job and I’m passionate about it. While investor communication is mandatory and strictly  regulated, when it comes to promoting investor relations, the sky is the limit! And you can have fun and make friends along the way, too.”

All Kesko divisions generated a good result in 2022. Our annual result has now improved for eight consecutive years. The result we achieved is strong proof that Kesko is a unique trading sector operator whose strategy works in a rapidly changing operating environment.

Kesko’s Board proposes to the Annual General Meeting a dividend of €1.08 per share for 2022, to be paid in four instalments

In 2022, our net sales grew by 4.3% in comparable terms and totalled €11,809 million. Our comparable operating profit amounted to €815 million, representing an increase of €40 million. Good progress was made in strategy execution in all areas. Our good ability to produce a profit and strong financial position enable investments in growth and good dividend capacity. Kesko’s Board proposes to the Annual General Meeting a dividend of €1.08 per share, which totals nearly €430 million, proposed to be paid in four instalments.

In the grocery trade division, profitability was good also in 2022. Profitability improved thanks to good performance by Kespro. The division’s net sales grew by 3.6%, and its comparable operating profit rose to €460 million. Profitability for the division was good, with a comparable operating margin of 7.5%. The basis for good profitability in the grocery trade division is our strong position in all areas of Finnish food trade. Our strength in food trade lies in our extensive network of physical grocery stores combined with efficient online sales and our foodservice business, as well as our well-functioning retailer business model. Our strategic goal is to continue to grow sales and improve customer experience.

The building and technical trade division posted its all-time best result in 2022. The division’s net sales grew by 9.4% in comparable terms and totalled €4,805 million. The comparable operating margin for the division was 7.1%. Strong performance continued for Onninen and K-Rauta in Finland. In Norway and Sweden, sales development was good in the B2B segment in both technical trade and building and home improvement trade. Onninen’s sales continued to grow also in Poland and the Baltic countries. B2B trade now accounts for over 80% of the division’s sales. Sales growth in B2B trade continued strong, underpinned by good construction activity. Demand was very strong especially in products related to the green transition and to improving energy efficiency. Good demand in renovation building also underpinned the positive performance. Renovation building accounts for over half of the division’s sales. During the year, we continued acquisitions in line with our strategy and the integration of the acquired businesses.

Our transformation process in the car trade division is proceeding well and yielding results. The division’s net sales totalled €911 million, and its comparable operating margin was 5.3%. Availability issues with cars caused net sales to decrease in 2022, but profitability remained at a good level thanks to improved sales margins and  transformation measures and efficiency improvements. Kesko’s car trade is No 1 in Finland when it comes to the sales of electric cars and the EV charging network.

Kesko’s long-standing work for sustainability and corporate responsibility brings results that gather also international recognition. The most recent examples are the assessments for the Dow Jones Sustainability Indices and the Global 100 listing of the most sustainable companies in the world: Kesko ranked among the best in its sector in both.

Kesko’s outlook for 2023 is also positive. We estimate that our comparable operating profit will be in the range of €680-800 million.

I want to thank all our customers, shareholders, Kesko employees, K-retailers and their staff, as well as our partners for their trust and collaboration in 2022.

KESKO'S FULL-YEAR 2022 FINANCIAL PERFORMANCE IN BRIEF:

• Group net sales in January-December totalled €11,809.0 million (€11,300.2 million), an increase of 4.4% in comparable terms, reported net sales grew by 4.5%

• Comparable operating profit totalled €815.1 million (€775.5 million), an increase of €39.6 million

• Operating profit totalled €816.5 million (€775.2 million)

• Comparable earnings per share €1.54 (€1.43)

• Reported Group earnings per share €1.53 (€1.44

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KESKO'S Q4/2022 PERFORMANCE IN BRIEF:

• Group net sales in October-December totalled €2,983.4 million (€2,870.3 million), an increase of 4.3% in comparable terms, reported net sales grew by 3.9%

• Comparable operating profit totalled €192.6 million (€203.5 million), a decrease of €10.9 million

• Operating profit totalled €191.2 million (€204.9 million)

• Comparable earnings per share €0.36 (€0.40)

• Reported Group earnings per share €0.36 (€0.41)
  
  

See our Q4 and full-year 2022 results release and presentation materials