Kesko (KESKOB) Q3 2021 earnings summary

Executive summary

• Record Q3: comparable revenue rose 7.8% to €2,902.4m and comparable operating profit rose €54.5m to €236.4m; performance improved across all three businesses.

• Jan–Sep comparable operating profit reached €572.0m, up €184.0m on illustrative comparable figures.

Financial highlights

• Q3 reported revenue was €2,902.4m, up 9.4%; reported operating profit was €236.5m vs. €224.6m, and comparable EPS was €0.43 vs. €0.33.

• Q3 profit before tax was €219.3m vs. €163.6m; operating cash flow was €381.2m vs. €286.6m.

• Jan–Sep revenue was €8,429.9m, up 5.3% reported and 8.6% comparable; reported operating profit was €570.3m vs. €444.6m.

• Jan–Sep operating cash flow was €882.8m vs. €844.0m; investments were €196.0m vs. €342.9m.

Outlook and guidance

• FY2021 comparable operating profit guidance was raised on 14 Oct to €740–800m from €650–750m; illustrative FY2020 comparable operating profit was €554m.

• The upgrade reflected stronger-than-expected sales and profit growth, particularly in construction and technical trade; grocery sales performed well and Kespro strengthened.

• Auto profitability benefited from higher margins and cost adaptation, but component shortages could weigh on Q4.