Finland's Kesko Q3 net sales rise 5.2%; lifts profit forecast
Finland's Kesko Q3 net sales rise 5.2%; lifts profit forecast
Overview
Finland retailer's Q3 net sales rose 5.2% yr/yr to €3.39 bln
Comparable operating profit for Q3 increased to €231.4 mln from €208.1 mln
Company raised 2026 profit guidance, now expects comparable operating profit of €690–730 mln
Outlook
Kesko raises 2026 comparable operating profit guidance to €690–730 mln from €670–730 mln
Company expects 2026 operating environment to improve but remain somewhat challenging
Kesko sees 2027 net sales and comparable operating profit improving in all divisions and countries
Result Drivers
TECHNICAL TRADE - Profit growth was strongest in the building and technical trade division, driven by good sales and profit in technical trade, especially in Finland, Norway and Poland
GROCERY MARKET SHARE - Grocery stores gained market share for four consecutive quarters, with Q3 market share up 0.4 percentage points, despite modest net sales growth
CAR TRADE DEMAND - Market demand for new cars picked up, with Kesko brands' first registrations up 23.9% and order book for new cars up nearly 70% yr/yr
Company press release: ID:nWkr6jmSYN
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales |
| EUR 3.39 bln |
|
Q3 Adjusted EPS |
| EUR 0.40 |
|
Q3 EPS |
| EUR 0.41 |
|
Q3 Adjusted EBIT |
| EUR 231.40 mln |
|
Q3 Adjusted EBIT Margin |
| 6.80% |
|
Q3 Adjusted Pretax Profit |
| EUR 197.90 mln |
|
Q3 EBIT |
| EUR 235.70 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and 2 "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 €23.50, about 5.9% below its October 28 closing price of €24.98
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 16 three months ago
Reuters Recommended Reads
Oct 28 - Finland's Kone Q3 sales rise 5.2%, orders up 7.2%
Oct 28 - Finland's Valmet Q3 orders jump on biomaterial services demand
Oct 28 - Finland's Sanoma Q3 adjusted operating profit up 10%
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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.)