Kesko (KESKOB) Investor presentation summary

Strategic direction and vision

• Aims to be the leading and most attractive trading sector growth company in Northern Europe, focusing on profitable growth and strengthening market position across grocery, building and technical, and car trade divisions.

• Strategy emphasizes operational excellence, omnichannel customer experience, and sustainability as core principles.

• Portfolio expected to remain stable through 2026, with focus on developing current businesses and improving profitability as construction outlook strengthens.

• Digitalisation and data-driven management are key enablers for efficiency and customer loyalty.

• Sustainability is integrated into all business operations, with ambitious climate, biodiversity, and social responsibility targets.

Financial performance and targets

• Rolling 12-month net sales reached €12,083.7 million and comparable operating profit €644.7 million, with an operating margin of 5.3%.

• Cash flow from operating activities was €886.1 million, and return on capital employed was 10.7%.

• Capital expenditure totaled €674.0 million, mainly for acquisitions and store site investments.

• Profit guidance for 2025 set at €640-700 million in comparable operating profit, reflecting a slower-than-expected recovery in construction.

• Financial targets remain: operating margin over 6%, ROCE over 14.5%, and net debt/EBITDA below 2.5.

Grocery trade division

• Net sales for the division were €6,362 million, with an operating profit of €425.1 million and a 6.7% margin.

• Holds a 33.7% market share in Finnish grocery trade and over 40% in online grocery.

• Kespro leads Finnish foodservice with a 49.1% market share.

• Focus areas include strengthening store-specific business ideas, investing in growth centers, and improving price competitiveness.

• Ongoing investments in new and remodelled hypermarkets, especially in urban growth centers.