Kesko: Sales in February reflect market’s uncertainties

Kesko / FI. (kkc) Sales of Finland’s Kesko Group in February grew by 4.2 percent, or decreased by 0.8 percent in comparable terms. «In February, Kesko’s sales grew by 4.2 percent year-on-year, or decreased by 0.8 percent in comparable terms. Sales performance was impacted by the fact that the month had one delivery day more than the year before. Sales increased in the grocery trade division. Sales in the building and technical trade division increased in absolute terms thanks to acquisitions completed, but decreased in comparable terms,» says Jorma Rauhala, Kesko’s President and CEO.

Sales in the grocery trade division totalled EUR 491.1 million in February, up by 4.7 percent. Sales to K Group grocery stores increased by 5.6 percent. Sales in K-Citymarket’s home and speciality goods (non-food) increased. Kespro’s sales increased by 1.7 percent.

Sales in the building and technical trade division totalled EUR 336.2 million in February, up by 5.9 percent, but down by 8.7 percent in comparable terms. Sales in building and home improvement trade increased by 6.4 percent, or decreased by 10.7 percent in comparable terms. Sales in technical trade increased by 5.1 percent, or decreased by 6.8 percent in comparable terms. In comparable terms, sales decreased by 11.9 percent in Finland, 12.0 percent in Sweden, and 5.2 percent in Norway. 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 93.7 million in February, a decrease of 1.4 percent in comparable terms. Car trade sales increased by 2.8 percent in comparable terms, while sports trade sales decreased by 21.2 percent.

Kesko Group’s sales in February 2024 totalled EUR 919.0 million, representing an increase of 4.2 percent.

Kesko Group sales in EUR, excluding VAT, in February 2024

	February 2024		Comparable
	EUR million	Change, %	change, %
Grocery sales to K Group grocery stores and non-food sales, total	397.6	+5.4	+5.5
Kespro	93.4	+1.7	+1.7
Grocery trade, total	491.1	+4.7	+4.7
Building and home improvement trade	162.5	+6.4	-10.7
Technical trade	178.4	+5.1	-6.8
Building and technical trade, total	336.2	+5.9	-8.7
Car trade	80.6	+0.2	+2.8
Sports trade	13.2	-21.2	-21.2
Car trade, total	93.7	-3.5	-1.4
Common functions and eliminations	-2.0
Grand total	919.0	+4.2	-0.8
Finland, total	734.4	-0.2	+0.1
Other countries, total	184.6	+26.7	-5.1
Grand total	919.0	+4.2	-0.8

Group sales in EUR, excluding VAT, in January-February 2024

	1.1.-29.2.2024		Comparable
	EUR million	Change, %	change, %
Grocery sales to K Group grocery stores and non-food sales, total	804.0	+4.4	+4.4
Kespro	187.9	+3.3	+3.3
Grocery trade, total	991.9	+4.2	+4.2
Building and home improvement trade	285.1	-4.5	-12.6
Technical trade	360.4	+2.8	-7.4
Building and technical trade, total	635.8	-0.5	-9.9
Car trade	164.3	+0.1	+2.5
Sports trade	25.8	-21.1	-21.1
Car trade, total	190.1	-3.4	-1.5
Common functions and eliminations	-3.9
Grand total	1,813.8	+1.7	-1.4
Finland, total	1,476.9	-0.8	-0.6
Other countries, total	337.0	+14.5	-5.9
Grand total	1,813.8	+1.7	-1.4

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, the business operations of an individual Neste K service station were transferred to Kesko. As of 1 February 2024, Davidsen Koncernen A/S has been part of Kesko.

Sports trade has been part of the car trade division from 1 April 2023 onwards. Prior to that, it 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.

The number of delivery days in February 2024 was up by 1 year-on-year in Kesko’s grocery trade, Kespro, and building and technical trade in Finland, Sweden and Norway. In January-February, the number of delivery days was up by 1 year-on-year in grocery trade and in building and technical trade in Norway, and by 2 in Kespro and in building and technical trade in Finland and Sweden. 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.

Kesko publishes advance information on the retail sales of K Group stores quarterly in connection with interim reports.