Kesko (KESKOB) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was €3,026.6 million, up 2.6% year-over-year, but comparable operating profit declined to €201.5 million from €208.1 million.

• Construction and building services saw profit growth for the first time in eight quarters.

• Grocery trade revenue and profit grew, with stable operating margin; car trade revenue and profit declined, but profitability remained strong.

• Major acquisitions in Denmark expanded market share to about 20%.

• Cash flow from operations for the nine months was €707.2 million, stable year-over-year.

Financial highlights

• Q3 2024 revenue: €3,026.6M (up from €2,949.1M in Q3 2023).

• Comparable operating profit: €201.5M (down from €208.1M).

• Operating margin: 6.7% (down from 7.1%).

• EPS: €0.34 (down from €0.38).

• Operating cash flow: €285.6M (down from €394.9M).

Outlook and guidance

• 2024 comparable operating profit guidance raised to €630–680M (previously €620–680M).

• 2025 environment expected to improve, with operating profit and margins seen rising.

• Grocery trade margin expected to stay well above 6% in 2025.

• Construction and building services profitability expected to improve from 2024.

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