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"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

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