Kesko (KESKOB) Q4 2025 earnings summary

Executive summary

• Net sales grew to €12,474.7 million in 2025, up 4.7% year-over-year, with all divisions reporting higher sales and improved or stable profitability.

• Comparable operating profit increased to €654.9 million, with market share gains in grocery, building and technical, and car trade divisions.

• Strategy focused on quality, price, and network expansion drove customer satisfaction and visits.

• The Board proposes a dividend of €0.90 per share, payout ratio 84%, to be paid in four instalments.

Financial highlights

• Group net sales: €12,474.7 million (+4.7% year-over-year); comparable net sales up 2.3%.

• Comparable operating profit: €654.9 million (+€4.8 million); reported operating profit: €631.3 million.

• Operating margin was 5.3% for the year; grocery trade margin at 6.5%, car trade at 6.1%, and building and technical trade at 3.8%.

• Cash flow from operating activities was €879.7 million, negatively impacted by a €100 million change in payment terms.

• Capital expenditure totaled €735.7 million, mainly for acquisitions and store investments.

Outlook and guidance

• 2026 comparable operating profit is estimated at €650–750 million, with improvement expected in all divisions and countries.

• Grocery trade margin expected to remain above 6% despite investments; building and technical trade to see moderate recovery; car trade net sales and profit to improve.

• Dividend policy remains to pay 60–100% of comparable EPS.

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