Kesko Group: announces 8M-2024 financial statement

Kesko / FI. (kkc) Sales of Finland’s Kesko Group decreased by 0.7 percent in August 2024, or by 3.9 percent in comparable terms. President and CEO Jorma Rauhala: «Kesko’s sales in August decreased by 0.7 percent. Sales decreased in the grocery trade and car trade divisions. In the building and technical trade division, sales in building and home improvement trade increased as a result of the Davidsen acquisition. The number of delivery days was down by 1 year-on-year in Kespro and in building and technical trade, which impacted sales performance.»

Sales in the grocery trade division totalled EUR 566.6 million in August, down by 1.9 percent. Sales to K Group grocery stores decreased by 2.7 percent. Sales in K-Citymarket’s home and speciality goods (non-food) trade decreased. Kespro’s sales increased by 1.5 percent.

(Table: Kesko Group)

Sales in the building and technical trade division totalled EUR 400.3 million in August, up by 2.5 percent, but down by 6.2 percent in comparable terms. Sales in building and home improvement trade increased by 15.5 percent, but decreased by 4.8 percent in comparable terms. Sales in technical trade decreased by 7.1 percent in comparable terms. In comparable terms, sales decreased by 6.5 percent in Finland, by 4.1 percent in Sweden, and by 6.5 percent in Norway. Sales performance in Sweden was impacted by the closure of K-Rauta stores. The sales figures of the Danish Davidsen have been consolidated into the figures of Kesko’s building and technical trade division from 1 February 2024 onwards.

Sales in the car trade division totalled EUR 106.5 million in August, a decrease of 5.6 percent. Car trade sales decreased by 5.7 percent; sales decreased in new cars, and increased in used cars and services. Sports trade sales decreased by 4.8 percent.

Kesko Group sales in August 2024 totalled EUR 1,071.6 million, representing a decrease of 0.7 percent.

Change percent indicates the change when compared to the corresponding period of the previous year. The comparable change percent has been calculated in local currencies and excluding the impact of acquisitions and divestments completed in 2023 and 2024. In addition, the calculation of comparable sales also takes into account the minor change in the business model of technical trade in Norway.

The reported sales for Kesko Group include the acquisitions and divestments completed in 2023 and 2024 in accordance with the dates of completion. In 2023, Kesko completed the acquisition of Elektroskandia Norge AS in Norway in March, Zenitec Sweden AB in Sweden in April, and Geitanger Bygg AS in Norway in October. At the end of March 2023, Kesko completed the divestment of its MAN business (trucks and buses). In February 2024 and in June 2024, the business operations of individual Neste K service stations were transferred to Kesko. In August, the business operations of four additional Neste K stations were transferred to Kesko. As of 1 February 2024, Davidsen Koncernen A/S in Denmark has been part of Kesko.

In August 2024, the number of delivery days was flat year-on-year in Kesko’s grocery trade, and down by 1 in Kespro and in building and technical trade in Finland, Sweden and Norway. In January-August, the number of delivery days was up by 1 year-on-year in grocery trade, Kespro and building and technical trade in Finland and Sweden, and flat in building and technical trade in Norway. Saturdays are wholesale delivery days in grocery trade but not in Kespro or in building and technical trade. Under normal circumstances, one delivery day has an approximately 2-4 percentage point impact on Kesko’s wholesale, depending on the division. In the car trade service business, one delivery day has an approximately 2-4 percentage point impact on sales; delivery days do not have a marked impact on new and used car sales.