”Kesko’s sales in September decreased by 5.7%, or by 6.5% in comparable terms. Sales in the building and technical trade division continued to decrease as construction volumes weakened, and the number of delivery days was also down by one compared to the year before. In technical trade, a large part of the decrease in sales was due to solar power products, where sales in the comparison period were exceptionally strong due to a significant rise in electricity prices at the time. In the grocery trade division, the timing of campaigns and delivery days had a negative impact on the September sales performance. Sales in the car trade division increased clearly in all car trade business areas,” says Mikko Helander, Kesko’s President and CEO.
Sales in the grocery trade division totalled €525.5 million in September, a decrease of 2.0%. Grocery sales to K Group grocery stores decreased by 1.7%. The number of weekday delivery days was down by one year-on-year. Sales in K-Citymarket’s home and speciality goods (non-food) decreased. Kespro’s sales increased by 2.1%.
Sales in the building and technical trade division totalled €393.9 million in September, representing a decrease of 15.1% in comparable terms and calculated in local currencies. Sales days had an approximately -4% impact on the division’s sales performance in September. Sales in building and home improvement trade decreased by 15.7% in comparable terms. Sales in technical trade decreased by 15.0% in comparable terms. Excluding the impact of solar power products, sales in technical trade decreased by 9.5%. Sales decreased in comparable terms by 19.5% in Finland, 18.0% in Sweden, and 6.9% in Norway. Reported sales for the division decreased by 12.8%.
Sales in the car trade division totalled €106.6 million in September, an increase of 5.5%. Car trade sales increased by 15.1% in comparable terms. Sports trade sales decreased by 14.9%.
Kesko Group’s sales in September 2023 totalled €1,024.0 million, representing a decrease of 5.7%.
Kesko Group sales in euros, excluding VAT, in September 2023:
| September 2023 | Comparable | ||
| € million | Change, % | change, % | |
| Grocery sales to K Group grocery stores and non-food sales, total | 427.8 | -2.9 | -2.9 |
| Kespro | 97.7 | +2.1 | +2.1 |
| Grocery trade, total | 525.5 | -2.0 | -2.0 |
| Building and home improvement trade | 173.2 | -20.5 | -15.7 |
| Technical trade | 226.4 | -6.4 | -15.0 |
| Building and technical trade, total | 393.9 | -12.8 | -15.1 |
| Car trade | 88.6 | +11.0 | +15.1 |
| Sports trade | 18.0 | -14.9 | -14.9 |
| Car trade, total | 106.6 | +5.5 | +8.6 |
| Common functions and eliminations | -1.9 | ||
| Grand total | 1,024.0 | -5.7 | -6.5 |
| Finland, total | 816.6 | -5.7 | -5.3 |
| Other countries, total | 207.5 | -6.0 | -10.7 |
| Grand total | 1,024.0 | -5.7 | -6.5 |
Kesko Group sales in euros, excluding VAT, in July-September 2023:
| 1.7.-30.9.2023 | Comparable | ||
| € million | Change, % | change, % | |
| Grocery sales to K Group grocery stores and non-food sales, total | 1,312.5 | +1.0 | +1.0 |
| Kespro | 303.9 | +4.8 | +4.8 |
| Grocery trade, total | 1,616.4 | +1.7 | +1.7 |
| Building and home improvement trade | 496.0 | -17.3 | -12.6 |
| Technical trade | 608.0 | -0.3 | -9.2 |
| Building and technical trade, total | 1,087.3 | -8.6 | -10.9 |
| Car trade | 268.2 | +9.9 | +12.5 |
| Sports trade | 45.7 | -16.6 | -16.6 |
| Car trade, total | 313.8 | +5.0 | +7.1 |
| Common functions and eliminations | -5.5 | ||
| Grand total | 3,012.0 | -1.9 | -2.6 |
| Finland, total | 2,464.2 | -1.3 | -1.1 |
| Other countries, total | 547.8 | -4.4 | -9.1 |
| Grand total | 3,012.0 | -1.9 | -2.6 |
Kesko Group sales in euros, excluding VAT, in January-September 2023
| 1.1.-30.9.2023 | Comparable | ||
| € million | Change, % | change, % | |
| Grocery sales to K Group grocery stores and non-food sales, total | 3,881.3 | +3.2 | +3.2 |
| Kespro | 891.4 | +13.3 | +13.3 |
| Grocery trade, total | 4,772.7 | +4.9 | +4.9 |
| Building and home improvement trade | 1,557.0 | -19.2 | -15.6 |
| Technical trade | 1,823.6 | +3.8 | -3.1 |
| Building and technical trade, total | 3,329.4 | -8.2 | -9.7 |
| Car trade | 837.8 | +22.4 | +24.5 |
| Sports trade | 136.3 | -13.9 | -13.9 |
| Car trade, total | 973.9 | +15.6 | +17.2 |
| Common functions and eliminations | -18.1 | ||
| Grand total | 9,058.0 | +0.7 | +0.2 |
| Finland, total | 7,436.7 | +2.4 | +2.6 |
| Other countries, total | 1,621.2 | -6.6 | -9.7 |
| Grand total | 9,058.0 | +0.7 | +0.2 |
Change % indicates the change when compared to the corresponding period of the previous year. The comparable change % has been calculated in local currencies and excluding the impact of acquisitions and divestments completed in 2022 and 2023.
The reported sales for Kesko Group include the acquisitions and divestments completed in 2022 and 2023, in accordance with the dates of completion. In 2022, Kesko completed the acquisitions of the Swedish Kungälvs Trävaruaktiebolag in March, Föllinge Såg AB and Djurbergs Järnhandel Aktiebolag in September, and XL-BYGG Bergslagen AB in October, as well as the acquisition of the Norwegian Seljord Elektriske AS in June. In 2023, Kesko has completed the acquisition of Elektroskandia Norge AS in Norway in March, and Zenitec Sweden AB in Sweden in April. At the end of March 2023, Kesko completed the divestment of its MAN business (trucks and buses).
Sports trade has been part of the car trade division as of 1 April 2023 onwards. Prior to that, sports trade was part of the building and technical trade division. In this release, sales for sports trade are included in the figures for the car trade division from the start of 2023 as well as for the comparison period.
The number of delivery days in Kesko’s grocery trade equalled that of the year before for September, July-September, and January-September, while in building and technical trade, the number of delivery days was down by one in Finland, Sweden and Norway. Saturdays are wholesale delivery days in grocery trade, but not in building and technical trade. Under normal circumstances, one delivery day has an approximately 2-4% impact on Kesko’s wholesale, depending on the division.
Kesko publishes advance information on the retail sales of K Group stores quarterly in connection with interim reports.
Further information is available from Hanna Jaakkola, Vice President, Investor Relations, tel. +358 105 323 540, and Eva Kaukinen, Vice President, Group Controller, tel. +358 105 322 338.
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