Finnish retailer Kesko has posted year-on-year net sales growth of 2.6%, to approximately €3 billion, in the third quarter of its financial year.
The company described its performance as 'good' considering challenging market conditions during the year.
Comparable operating profit amounted to €201.5 million in the third quarter, with building and technical trade and grocery trade segments witnessing growth.
Grocery Division
Net sales in the grocery trade division reached €1.6 billion during the quarter, reflecting an increase of 1.0%, while its comparable operating profit amounted to €118.8 million.
K Group’s grocery sales were down by 0.1%, slightly behind the market. Online grocery sales increased by 13.9% driven by growth in express deliveries.
Kespro, the company's foodservice arm, reported net sales growth of 3.1%, exceeding market growth.
President and CEO Jorma Rauhala, commented, "Grocery price inflation slowed down notably and stood at 0.4%. Our customer flows continued to grow thanks to campaigns, while customers emphasise price.
"Our strategy execution in grocery trade is proceeding according to plans, focusing on strengthening store-specific business ideas, developing our store site network, and improving our price competitiveness."
Nine-Month Performance
Net sales across the group in the nine months to September amounted to €8.9 billion.
On a reported basis, net sales remained at last year's level, while on a comparable basis, it declined by 3.5%.
Operating profit reached €458.5 million, while cash flow from operating activities added up to €707.2 million.
Outlook 2025
Kesko is optimistic about the future and expects the operating environment to improve in 2025.
The company foresees comparable operating profit to increase in the next financial year.
In the grocery trade segment, B2C trade and the foodservice market are estimated to remain stable, the company noted.
In 2025, the comparable operating margin for Kesko's grocery trade division is expected to stay clearly above 6% despite investments in price and store site network - in line with the company's strategy for 2024-2026.
