Kesko (KESKOB) Q1 2025 earnings summary

Executive summary

• Revenue increased 2.5% year-over-year to €2,827.7 million in Q1 2025; comparable revenue grew 1.1%.

• Comparable operating profit declined to €95.6 million from €99.5 million; reported operating profit was €89.4 million.

• EPS (comparable) was €0.13, down from €0.16; reported EPS was €0.12, down from €0.15.

• Operating cash flow was negative at -€24.5 million, impacted by seasonal working capital needs.

• Major acquisitions in Denmark strengthened market position in building and technical trade.

Financial highlights

• Revenue: €2,827.7 million (+2.5% y/y); comparable revenue +1.1%.

• Comparable operating profit: €95.6 million (3.4% margin); reported: €89.4 million.

• Profit before tax (comparable): €65.1 million; reported: €60.1 million.

• EPS: €0.13 (Q1 2024: €0.16); reported EPS: €0.12 (Q1 2024: €0.15).

• Investments: €138 million, down from €329 million year-over-year.

Outlook and guidance

• 2025 comparable operating profit expected at €640–740 million, based on gradual improvement in all operating countries.

• Market environment seen improving but remains challenging; key risks include consumer confidence, investment appetite, and geopolitical tensions.

• Grocery trade margin expected to stay well above 6% despite price investments.

• Building and technical trade profitability expected to improve from 2024.

• Car trade profitability expected to remain strong despite weak new car demand.