Kesko (KESKOB) Q4 2025 earnings summary

Executive summary

• Comparable operating profit and net sales grew across all divisions in 2025, with market share gains in nearly all businesses and full-year revenue at €12,474.7 million and comparable operating profit at €654.9 million, despite a challenging environment.

• Growth strategy execution, cost control, and acquisitions contributed to results, enabling continued investments and a proposed dividend of €0.90 per share.

• Grocery trade saw a notable upturn in market share and strong profitability, supported by increased customer visits and satisfaction.

• Building and technical trade achieved profit growth despite a weak market, aided by acquisitions and integration in Denmark.

• Car trade strengthened its market position, with significant increases in both net sales and operating profit.

Financial highlights

• Group net sales rose to €12,474.7 million in 2025 from €11,920.1 million in 2024, a 2.3% increase year-over-year.

• Comparable operating profit reached €654.9 million, up from €650.1 million.

• Earnings per share (basic) was €1.07, compared to €1.11 in the previous year; reported EPS was €1.02 (€0.95 in 2024).

• Cash flow from operating activities was €879.7 million, down from €1,008.2 million.

• Total capital expenditure was €735.7 million, up from €675.9 million, including significant acquisitions in Denmark.

Outlook and guidance

• Comparable operating profit for 2026 is estimated at €650–750 million, with an improving but still challenging operating environment.

• All divisions and operating countries are expected to see improved performance in 2026.

• Grocery trade operating margin is projected to remain above 6% despite ongoing investments.

• Key uncertainties include consumer confidence, investment appetites, and geopolitical risks.