Kesko (KESKOB) Investor Day 2024 summary

Updated growth strategy and market environment

• Strategy period shortened to 2024–2026 due to market uncertainties, with focus on grocery, building and technical trade, and car trade divisions; no major portfolio changes planned.

• Emphasis on operational excellence, customer-centricity, and crystallizing competitive advantages across all divisions.

• B2B share of net sales is 40% and expected to increase as strategy is implemented.

• Urbanization, climate change, digitalization, and demographic shifts are key trends shaping investments and operations.

• AI and digitalization projects will be expanded to enhance efficiency and customer experience.

Grocery trade division

• Aims to gain market share while maintaining EBIT above 6%, focusing on store network upgrades in growth centers and price competitiveness.

• Annual investments in grocery store sites will be €200–250 million, targeting larger units in urban areas and hypermarkets.

• Price competitiveness improved through systematic programs; store-specific business ideas and fresh departments prioritized.

• Kespro’s market-leading position in foodservice to be further strengthened.

• New business models leveraging data and digitalization to drive additional income streams.

Building and technical trade division

• Long-term EBIT margin target of 6–8%, with focus on profitability, cash flow, and further M&A, especially in Sweden and Denmark.

• Finland focuses on market share gains; Sweden and Norway prioritize integration and performance improvement.

• Denmark to drive organic and acquisition-based growth, finalizing Davidsen integration.

• Recent acquisitions, such as Elektroskandia Norge and Davidsen, strengthen market leadership and geographic reach.

• Digital solutions and green transition products prioritized to enhance customer experience and efficiency.