Kesko (KESKOB) Q2 2021 earnings summary

Executive summary

• Q2 delivered record comparable operating profit of €219.4m; illustrative comparable profit rose €77.9m YoY, with growth across all three business areas.

• H1 comparable operating profit was €335.6m vs €220.3m; illustrative growth was €129.4m, with Kesko Senukai treated as a joint venture in both periods.

Financial highlights

• Q2 revenue was €2,988.2m, up 6.2% reported and 12.0% comparable; comparable operating profit was €219.4m vs €155.2m on reported comparatives.

• Q2 comparable EPS was €0.40 vs €0.24; reported EPS was €0.41 vs €0.24, and comparable profit before tax was €203.6m vs €135.2m.

• H1 revenue was €5,527.5m, up 3.2% reported and 9.1% comparable; net income was €240.0m vs €131.9m.

• H1 comparable EPS was €0.60 vs €0.32; reported EPS was €0.60 vs €0.33.

Outlook and guidance

• FY2021 comparable operating profit guidance was raised to €650m–€750m from €570m–€670m; illustrative 2020 comparable operating profit was €554m.

• Guidance reflected stronger-than-expected sales and results, especially in building and technical trade; uncertainty remained around consumption, product availability, inflation and pandemic duration.