Going forward, K Group will only accept cocoa and chocolates made from 100% sustainable origin cocoa for its Pirkka, K-Menu and Menu ranges.
FINANCIAL PERFORMANCE IN BRIEF:
KEY PERFORMANCE INDICATORS
|Net sales, € million||8,058||7,415||2,647||2,792|
|Operating profit, comparable,
|Operating profit, € million||267.7||187.0||98.6||85.5|
|Profit before tax, comparable,
|Profit before tax, € million||270.0||188.7||98.0||84.8|
|Capital expenditure, € million||232.8||637.7||62.7||73.6|
|Earnings per share, €, diluted||2.16||1.40||0.69||0.63|
|Earnings per share, comparable,
|Cash flow from operating activities
per share, €
|Return on capital employed,
comparable, %, rolling 12 months
|Return on equity, comparable, %,
rolling 12 months
|Equity ratio, %||49.1||47.9|
|Equity per share, €||20.89||20.84|
PRESIDENT AND CEO MIKKO HELANDER:
The implementation of our strategy towards becoming a more focused and unified Kesko and K Group is proceeding well.
During the past quarter, net sales grew in comparable terms in all divisions. Profitability improved compared to the year before and cash flow from operating activities continued to strengthen further. Kesko's financial position is very strong.
The strategy for the grocery trade and its implementation, which is proceeding well, resulted in increased sales and improved profitability. The reworking of K-food store chains is well under way. Sales and customer flows are growing for all chains. The changes already made in K-Citymarkets have strengthened the chain's market position. We are also pleased about the progress made in the integration of Suomen Lähikauppa and the resulting synergy benefits, which have materialised sooner than anticipated. Kespro continued to perform well both in terms of sales and profitability.
In the building and technical trade, sales in Finland grew markedly and profitability improved, with Onninen's operating profit in particular continuing to increase. In Onninen's foreign operations, good progress has been made in Poland in measures to improve profitability. Losses in Onninen's Swedish operations have decreased, but work continues to improve profitability further. In the Baltics and Belarus, investments and store renewals continued in an effort to further strengthen Kesko Senukai's sales and market position. The division's sales and operating profit were reduced by the divestments carried out during the first half of the year in the speciality goods trade.
In the car trade, sales and profitability continued to develop positively, and our market share increased during the quarter. The acquisition of AutoCarrera and the good sales of Porsche also contributed to the division's improved profitability.
As a sign of our long-term commitment to corporate responsibility, Kesko is again included in the Dow Jones Sustainability Indices DJSI World and DJSI Europe of the world's most responsible companies.