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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

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