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, CONTINUING OPERATIONS:
KEY PERFORMANCE INDICATORS
|Net sales, € million||7,728||7,917||2,642||2,596|
|Operating profit, comparable, € million||241.7||215.8||112.6||100.5|
|Operating margin, comparable||3.1||2.7||4.3||3.9|
|Operating profit, € million||228.2||267.8||110.0||96.7|
|Profit before tax, comparable, € million||237.7||218.7||111.8||100.3|
|Profit before tax, € million||224.2||270.7||109.1||96.5|
|Cash flow from operating activities, € million||309.6||181.2||130.5||97.8|
|Capital expenditure, € million||349.9||216.4||221.2||62.9|
|Return on capital employed, comparable, %, rolling 12 months||13.8||12.4||13.8||12.4|
|Return on equity, comparable, %, rolling 12 months||11.6||9.9||11.6||9.9|
|Earnings per share, €, basic and diluted|
|Earnings per share, comparable, €, basic|
|Equity ratio, %||48.5||49.1|
|Equity per share, €||20.78||20.89|
PRESIDENT AND CEO MIKKO HELANDER:
Kesko’s net sales continued to grow in the third quarter, in line with our growth strategy. Our operating profit also improved and we delivered our best quarterly result ever. Our cash flow development was also good and our financial position remained strong. Return on capital employed nearly met our target level.
Performance in the grocery trade continued strong: our sales, market share and profitability all improved in the third quarter. The importance of quality, selections and good online services continues to grow. Our objective is to offer the most inspiring and customer-oriented physical and online grocery stores. We were pleased with the growth in our customer numbers and sales in all chains, and our online food sales also grew considerably. We have nearly doubled the number of stores across Finland offering online food sales: the number will near 150 by the end of this year. Kespro continued to perform well in the foodservice market. We continued investments in store redesigns, logistics operations, information systems and digital services.
The operating environment for the building and technical trade has continued to be positive, although the growth pace is expected to slow down and share of renovation building to grow. In our building and technical trade division, we continued the implementation of country-specific strategies and strengthened our business through acquisitions. Net sales for the division grew and the operating profit excluding the speciality goods trade improved by €7 million. K-Rauta in Finland performed well, and Onninen’s growth and profitability also strengthened further. In Norway, sales and profit increased thanks to the acquisitions made to strengthen the Byggmakker chain. In Sweden, we continued efforts to improve the profitability of K-Rauta and Onninen.
Development in the car trade was in line with our expectations. The division’s net sales and operating profit were at a good level even though the implementation of the new WLTP emissions testing at the beginning of September had a weakening impact on performance in the short term. The situation is expected to return to normal during the first half of 2019.
Kesko was again included in the prestigious Dow Jones Sustainability Indices, the DJSI World and DJSI Europe. We received the industry best overall score in the Environmental Dimension.
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