Kesko financial statements release 1.1.–31.12.2025: Kesko’s result improved, net sales grew in all divisions

Financial performance in brief:

10–12/2025

• Group net sales in October-December totalled €3,230.9 million (€3,040.6 million); reported net sales grew by 6.3% while comparable net sales grew by 3.1%
• Comparable operating profit totalled €174.6 million (€170.8 million), representing an increase of €3.8 million
• Operating profit totalled €160.1 million (€121.0 million)
• Cash flow from operating activities totalled €292.5 million (€301.0 million)
• Comparable earnings per share €0.28 (€0.31); reported earnings per share €0.25 (€0.19)

1–12/2025

• Group net sales in January–December totalled €12,474.7 million (€11,920.1 million); reported net sales grew by 4.7%, while comparable net sales grew by 2.3%
• Comparable operating profit totalled €654.9 million (€650.1 million), representing an increase of €4.8 million
• Operating profit totalled €631.3 million (€579.5 million)
• Cash flow from operating activities totalled €879.7 million (€1,008.2 million)
• Comparable earnings per share €1.07 (€1.11); reported earnings per share €1.02 (€0.95)
• The Board proposes a dividend of €0.90 per share, proposed to be paid in four instalments

Key performance indicators

In this financial statements release, the comparable change % in net sales has been calculated in local currencies and excluding the impact of acquisitions and divestments completed in 2025 and 2024. The comparable operating profit has been calculated by deducting items affecting comparability from the reported operating profit.

Profit guidance for 2026

Kesko Group’s profit guidance is given for the year 2026, in comparison with the year 2025. Kesko’s operating environment is estimated to improve in 2026, but to still remain somewhat challenging. Kesko’s comparable operating profit is estimated to improve in 2026. Kesko estimates that its 2026 comparable operating profit will amount to €650–750 million. Key uncertainties impacting Kesko’s outlook are developments in consumer confidence and investment appetites, as well as geopolitical crises and tensions.

Outlook for 2026

The operating environment for Kesko is estimated to improve in 2026 in all divisions and all operating countries. Kesko’s comparable operating profit is also estimated to improve in 2026 in all divisions and all operating countries.

In grocery trade, B2C trade is estimated to pick up and the foodservice business to remain stable. In 2026, the comparable operating margin for the grocery trade division is estimated to stay clearly above 6% despite the investments in price and the store site network. The comparable operating profit for the grocery trade division is estimated to improve in 2026 compared to 2025.

In building and technical trade, the cycle is expected to improve moderately in 2026 from an exceptionally low level. The comparable operating result for the building and technical trade division is estimated to improve in 2026 compared to 2025 in all Kesko operating countries.

In the car trade market, new car sales are expected to remain muted compared to long-term levels, but to nonetheless grow compared to 2025. The net sales and comparable operating profit for Kesko’s car trade division are estimated to improve in 2026 compared to 2025.

President and CEO Jorma Rauhala:

Kesko’s comparable operating profit improved and net sales increased in all three divisions in 2025. The full-year net sales amounted to €12,474.1 million and comparable operating profit to €654.9 million. In the latter half of the year, there was a turnaround in profit, as quarter-result improved in Q3 and growth continued in Q4. The successful execution of our updated growth strategy in all divisions has yielded results even in an operating environment that has continued to be challenging. Our cost control has also been effective. Our good ability to generate profit and financial position have enabled investments in growth, and we will continue strong growth investments also in upcoming years. Kesko’s Board of Directors proposes to the Annual General Meeting a dividend payment in line with the company’s dividend policy: €0.90 per share, or over €358 million in total, to be paid in four instalments.

Net sales for Kesko’s grocery trade division grew and totalled €6,447.7 million in 2025, with a comparable operating profit of €418.1 million. Kesko’s objective in grocery trade is to strengthen its market position while maintaining good profitability. Both were achieved in 2025. Operating margin for the division stood at 6.5%. The market share development for K Group grocery stores was very close to the market trend for full-year 2025. A significant turn was seen in the summer, and our market share grew by 0.2 percentage points in July-December and by 0.5 percentage points in Q4 (source: Finnish Grocery Trade Association). The K-Citymarket chain gained market share in the hypermarket segment throughout 2025, and in the final quarter, all K Group grocery chains won over market share in their respective segments. Kesko’s strategic investments in the grocery store network and the price and quality levels of the stores are yielding results. The total grocery trade market also grew from the summer onwards. In the foodservice business, Kespro gained market share despite the 0.3% decrease in sales.

In the building and technical trade division, both net sales and comparable operating profit grew despite the weak cycle in new housing construction. Net sales for the division totalled €4,685.8 million, with a comparable operating profit of €178.6 million. The full-year 2025 profit improved in building and home improvement trade and was close to flat in technical trade, while in the final quarter, profit improved in both business areas. We strengthened market position for Davidsen in Denmark by acquiring three local building and home improvement trade operators in 2025: Roslev, Tømmergaarden and CF Petersen & Søn. Kesko’s biggest ever construction project, the joint Onninen and K-‍Auto logistics centre Onnela in Hyvinkää, Finland, was completed in 2025. Gradual recovery in the construction cycle continued throughout the year, but the pace of recovery in the latter half of the year was weaker than anticipated, especially in new housing construction. In the longer term, however, outlook for the building and technical trade division is positive. Strategic focus for the division is on securing growth and profitability and improving cash flow in each country and business.

Net sales for the car trade division in 2025 increased by 12% and totalled €1,364.8 million, with a comparable operating profit of €83.1 million. The division managed to improve its net sales and comparable operating profit significantly despite the fact that the car trade market in Finland continued to be challenging, as consumer confidence stayed weak and uncertainty regarding powertrain choices persisted. Net sales grew in new and used cars, car services, and sports trade. The strong product and service portfolio and significant transformation measures carried out within the division in recent years have resulted in improved sales and profitability. Kesko’s objective in car trade is to outperform the market in all business areas.

Our market position grew stronger in nearly all business areas in 2025. We estimate that both our operating environment and results will improve in 2026 in all divisions and operating countries. I want to thank all our customers, the people of K Group, our shareholders, and our partners for their trust and cooperation in 2025.

Proposal for profit distribution

The Board of Directors of Kesko Corporation proposes to the Annual General Meeting to be held on 26 March 2026 that a dividend of €0.90 per share be paid for the year 2025 based on the adopted balance sheet on shares held outside the company at the date of dividend distribution. The remaining distributable assets will remain in equity. The Board proposes that the dividend be paid in four instalments.

The first instalment of €0.23 per share is to be paid to shareholders registered in the company's register of shareholders kept by Euroclear Finland Ltd on the instalment’s record date 30 March 2026. The Board proposes that the dividend instalment pay date be 8 April 2026.

The second instalment of €0.22 per share is to be paid to shareholders registered in the company's register of shareholders kept by Euroclear Finland Ltd on the instalment’s record date 16 July 2026. The Board proposes that the dividend instalment pay date be 23 July 2026.

The third instalment of €0.23 per share is to be paid to shareholders registered in the company's register of shareholders kept by Euroclear Finland Ltd on the instalment’s record date 15 October 2026. The Board proposes that the dividend instalment pay date be 22 October 2026.

The fourth instalment of €0.22 per share is to be paid to shareholders registered in the company's register of shareholders kept by Euroclear Finland Ltd on the instalment’s record date 14 January 2027. The Board proposes that the dividend instalment pay date be 21 January 2027.

The Board proposes that it be authorised to decide, if necessary, on new dividend payment record dates and pay dates for one or more dividend instalments, if the rules and statutes of the Finnish book-entry system change or otherwise so require, or if the payment of dividends is prevented by laws or regulations applied.

As at the date of the proposal for the distribution of profit, 4 February 2026, a total of 398,118,827 shares were held outside the company, and the corresponding total amount of dividends is €358,306,944.30.

Kesko Corporation's distributable assets total €1,547,000,994.36, of which profit for the financial year is €363,101,477.81.

Annual General Meeting

The Board of Directors has decided that Kesko’s Annual General Meeting will be held on 26 March 2026 at 1.00 pm (EET). Kesko Corporation will publish a notice of the General Meeting on  its website and as a stock exchange release on 5 February 2026.

Annual Report 2025, Corporate Governance Statement, and Remuneration Report for Governing Bodies

Kesko will publish its 2025 Annual Report, including a strategy review, the Report by the Board of Directors and financial statements for 2025, the Corporate Governance Statement, and the Remuneration Report for Governing Bodies in week 9 on its website at www.kesko.fi.

The information in this financial statements release is unaudited.

Further information, audioconference and webcast

Further information is available from Anu Hämäläinen, Executive Vice President, Chief Financial Officer, tel. +358 105 323 713, Hanna Jaakkola, Vice President, Investor Relations, tel. +358 105 323 540, and Eva Kaukinen, Vice President, Group Controller, tel. +358 105 322 338. An English-language audio conference on the results briefing will be held on 5 February 2026 at 9.00 am (EET). The audio conference login is available on Kesko's website at www.kesko.fi. A Finnish-language webcast of the interim report briefing can be viewed at 10.30 am (EET) at www.kesko.fi.

Kesko's interim report for January–March 2026 will be published on 29 April 2026. In addition, Kesko Group's sales figures are published monthly. News releases and other company information are available on Kesko's website at www.kesko.fi.

This is a summary of Kesko Corporation’s January-December 2025 Financial Statements Release. The complete report is attached to this release and also available at www.kesko.fi/en/investor/

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