Kesko (KESKOB) Q1 2022 earnings summary

Executive summary

• Record Q1 comparable operating profit of €143.7m, up €27.6m YoY, with comparable revenue growth of 6.5%.

• Building and technical trade drove earnings growth; grocery remained profitable, while vehicle availability constrained auto sales.

Financial highlights

• Revenue was €2,707.3m, up 6.5% on a comparable basis; comparable operating profit was €143.7m versus €116.2m.

• Reported operating profit was €144.6m versus €115.7m; net income was €103.2m versus €78.4m.

• Comparable diluted EPS was €0.27 versus €0.20; reported EPS was €0.26 versus €0.20.

Outlook and guidance

• FY22 comparable operating profit guidance was raised to €730m–€840m from €680m–€800m; FY21 comparable operating profit was €775.5m.

• Stronger-than-expected demand from building and technical trade business customers and Kespro foodservice supported the improved outlook.

• Forecasting remained uncertain due to geopolitical and macroeconomic developments, inflation, product availability and COVID-19.