Kesko (KESKOB) SEB Nordic Large Cap Seminar presentation summary

Strategic direction and growth focus

• Pursuing growth across grocery, building and technical trade, and car trade divisions.

• Aims to be the leading and most attractive trading sector growth company in Northern Europe.

• Focus on strengthening market position and building a focused B2C and B2B portfolio.

• Emphasizes operational excellence, omnichannel customer experience, and sustainability leadership.

• Enhancing AI and technology capabilities to drive customer value.

Financial performance and segment highlights

• Grocery trade net sales €6,533m, operating profit €423.0m (6.5%).

• Building and technical trade net sales €4,976m, operating profit €201.7m (4.1%).

• Car trade net sales €1,383m, operating profit €78.1m (5.6%).

• Q2 saw net sales growth and improved profit, with technical trade performance particularly strong.

• Car trade driven by used cars and a strong order book for new cars.

Major acquisition and market expansion

• Announced acquisition of Dahl's technical trade operations in Sweden, Norway, and Denmark.

• Combined net sales of acquired businesses €2.1bn, EBITDA €146m in 2025.

• Illustrative combined net sales for building and technical trade with Dahl would be €6.8bn in 2025.

• Acquisition expected to finalize by early 2027, pending competition authority approval.

• Long-term profitability target for technical trade division set at 6-8%.