Kesko Oyj Unsp/Adr Q2 2025 Earnings | 07/22/2025

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Kesko Oyj reported steady financial progress for the second quarter of 2025, despite ongoing challenges in consumer confidence and a slower-than-expected recovery in the construction sector. Reported net sales for Q2 2025 were €3,188.8 million, climbing 3.1% year-over-year, with comparable net sales rising by 1.3%. The company’s comparable operating profit reached €176.7 million, yielding an operating margin of 5.5%. Meanwhile, reported operating profit increased to €177.9 million, up from €159.2 million the previous year. Net income for the period was €117.1 million, representing growth from €105 million in Q2 2024. Both basic and diluted earnings per share improved to €0.29 from €0.26 a year earlier. In the grocery trade division, Kesko achieved net sales of €1,606 million and a comparable operating profit of €111 million. Efforts to enhance pricing and expand the store network contributed to increased average purchase values and higher customer flows, with online grocery sales growing by 10.1%. The division also managed to slow its market share loss and secured gains within the hypermarket segment. Net sales in the building and technical trade division rose to €1,237 million, supported by acquisitions in Denmark and ongoing—though slower than expected—recovery in the construction cycle. The car trade division also delivered robust results: net sales increased to €352 million and comparable operating profit reached €22 million, driven by strong growth in new and used car sales. The company’s liquidity and operating cash flow remained strong, with Q2 cash flow from operating activities totaling €323.9 million compared to €309 million in the prior year. Capital expenditure for the quarter jumped to €317.6 million, driven largely by acquisition activities. The net debt-to-EBITDA ratio was stable at 1.8, indicating prudent financial management and leaving significant headroom relative to Kesko’s internal maximum target. Looking ahead, Kesko has fine-tuned its outlook for 2025: the company now expects its comparable operating profit for the year to land between €640 million and €700 million, narrowing the previous range due to the delayed turnaround in the construction sector and integration of Danish acquisitions. Management remains focused on fortifying its market position, executing strategic investments, and navigating uncertainty in consumer demand and the wider economic landscape. Special attention is being paid to price competitiveness, expanding digital and physical retail channels, and maintaining solid profitability across all divisions. #Kesko #KKOYY #Q22025 #Earnings #FinancialResults #NetSales #OperatingProfit #GroceryTrade #BuildingTrade #CarTrade #ProfitGuidance #MarketUpdate #Retail #Dividend #Acquisitions #Construction #DigitalSales #GrowthStrategy #OperatingCashFlow #ShareholderReturns #InsideTicker