Finland's Kesko Q2 sales rise on technical trade; lifts profit outlook
Finland's Kesko Q2 sales rise on technical trade; lifts profit outlook
Overview
Finland retailer-wholesaler's Q2 net sales rose 6% yr/yr, with growth in all divisions
Comparable operating profit and EPS increased yr/yr, led by technical trade division
Company raised lower end of 2026 profit guidance; announced major technical trade acquisition
Outlook
Kesko estimates 2026 comparable operating profit at €670–730 mln, up from €650–750 mln
Company expects net sales and profit to improve in all divisions and countries in 2026
Kesko sees grocery trade operating margin above 6% in 2026 despite price and network investments
Result Drivers
TECHNICAL TRADE STRENGTH - Profit growth was strongest in the building and technical trade division, driven by good sales and profit performance in technical trade, especially in Finland and other operating countries
GROCERY TRADE MARKET SHARE - Grocery trade net sales increased, with all store chains gaining market share in their size segments; K-Supermarket led market share growth
KESPRO WEAKNESS - Grocery trade profit was held back by weaker performance in the foodservice (Kespro) business, which saw a profit decline due to a challenging market
Company press release: ID:nWkrbt6zxV
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales |
| EUR 3.38 bln |
|
Q2 Adjusted EPS |
| EUR 0.32 |
|
Q2 EPS |
| EUR 0.32 |
|
Q2 Adjusted EBIT |
| EUR 194 mln |
|
Q2 Adjusted EBIT Margin |
| 5.70% |
|
Q2 Adjusted Pretax Profit |
| EUR 162.10 mln |
|
Q2 EBIT |
| EUR 191 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the food retail & distribution peer group is "buy"
Wall Street's median 12-month price target for Kesko Oyj is €22.00, about 10.7% above its July 21 closing price of €19.87
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 16 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)