Kesko (KESKOB) Q1 2021 earnings summary

Executive summary

• Record Q1 result: comparable revenue grew 5.9% to €2,539.4m; comparable operating profit reached €116.2m.

• Strong retail sales, improved cost efficiency and positive performance across food, building and technical trade, and automotive supported results.

Financial highlights

• Reported revenue was €2,539.4m vs. €2,540.4m; illustrative comparable revenue was €2,539.4m vs. €2,355.6m.

• Comparable operating margin was 4.6% vs. 2.6%; reported operating profit was €115.7m vs. €65.9m.

• Comparable PBT was €99.6m vs. €32.7m; reported PBT was €99.2m vs. €33.1m, and net income was €78.4m vs. €26.6m.

• Comparable EPS was €0.20 vs. €0.08; reported EPS was €0.20 vs. €0.09.

Outlook and guidance

• FY2021 comparable operating profit guidance rose to €570–670m from €520–620m; FY2020 illustrative comparable operating profit was €554m.

• The upgrade reflected stronger-than-expected sales across divisions and improved year-end expectations; COVID-19 uncertainty kept the guidance range wide.

• Food retail expected demand to remain potentially above pre-pandemic levels, with online grocery retaining a higher base and continuing to grow.

• Building and technical trade expected strong construction and renovation in Finland and Scandinavia, with consumer trade normalizing; automotive priorities included profitability, sales growth and customer experience.