Kesko (KESKOB) Investor presentation summary

Strategic direction and vision

• Pursuing growth across grocery, building and technical, and car trade divisions, with a focus on both B2C and B2B segments.

• Strategy emphasizes operational excellence, omnichannel customer experience, and sustainability leadership.

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

• Growth in building and technical trade driven by acquisitions, especially in Denmark, and integration of recent purchases.

• Sustainability is integrated into all business areas, with clear targets for emissions, biodiversity, and supply chain responsibility.

Financial performance and key figures

• Q1 2025 net sales rose to €2,827.7 million, but comparable operating profit declined to €95.6 million.

• Rolling 12-month net sales reached €11,988 million, with an operating margin of 5.4%.

• Return on capital employed at 11.0%, below the long-term target of over 14.5%.

• Cash flow from operating activities was negative in Q1 due to seasonal factors and inventory build-up.

• Dividend for 2024 set at €0.90 per share, with a policy of distributing 60-100% of comparable earnings.

Grocery trade division

• Market share at 33.7% in 2024, with over 1,100 stores and strong online presence; Kespro leads foodservice with 49.1% share.

• Q1 2025 sales and profit impacted by Easter timing and price investments; online grocery sales up 5.6%.

• Ongoing investments in store network, price competitiveness, and digital services; annual capex €200-250 million.

• Focus on quality, price, and network to drive market share turnaround; 30 new stores and 92 modernisations planned for 2024-2025.

• Operating margin expected to remain above 6% despite investments.