The new medium-term financial targets for profitability, as approved by the Board of Directors of Kesko Corporation, are a comparable operating margin of 5.5% and a comparable return on capital employed of 12.5%. In terms of financial position, as before, the Group targets a maximum interest-bearing net debt/EBITDA ratio of 2.5, excluding the impact of IFRS 16. Kesko Group’s previous financial targets were a comparable operating margin of 5.0%, a comparable return on capital employed of 11.0%, and interest-bearing net debt/EBITDA of less than 2.5 excluding the impact of IFRS 16.
rolling 12 months
|Comparable operating margin, %||5.5||5.0|
|Comparable return on capital employed, %||12.5||11.0|
|Interest-bearing net debt/EBITDA,
excluding IFRS 16 impact
|at maximum 2.5||0.5|
Thanks to the successful execution of its growth strategy, Kesko achieved its previous financial targets at the end of September 2020, sooner than anticipated. The Covid-19 epidemic and related changes in consumer behaviour have also had a positive impact on the company’s profit in 2020. Kesko estimates that less than half of its profit growth in 2020 is related to the Covid-19 epidemic. The new targets take into account economic development in Kesko's operating countries in upcoming years, which is generally expected to be moderate.
Jukka Erlund, Chief Financial Officer, tel. +358 105 322 113
Hanna Jaakkola, Vice President, Investor Relations, tel. +358 105 323 540
Nasdaq Helsinki Ltd
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