Q3 2024 Kesko Oyj Earnings Call Transcript
Key Points
- Kesko Oyj (KKOYF) reported a significant turnaround in its building and technical trade division, marking the first positive result in eight quarters.
- The company announced strategic acquisitions in Denmark, which are expected to increase its market share in the Danish building and home improvement sector to approximately 20%.
- Kesko Oyj successfully issued a EUR300 million green bond, demonstrating its commitment to sustainable financing.
- The grocery trade division showed stable performance with a slight increase in comparable operating profit, supported by a 13.9% rise in online grocery sales.
- Kesko Oyj's financial position remains strong, with a net debt to EBITDA ratio of 1.2, well below the maximum target of 2.5.
- Comparable operating profit decreased in the car trade division, reflecting challenges in the new car market.
- Return on capital employed decreased across all divisions compared to the previous year, indicating a decline in earnings.
- Cash flow from operating activities was impacted by increased working capital and calendar effects, leading to a lower cash flow in Q3.
- The construction cycle remains weak, affecting sales in the building and technical trade division despite recent improvements.
- Market share losses in the grocery trade division were noted, with a need for strategic price investments to regain competitiveness.
Dear all, warmly welcome virtual to Helsinki and thank you for tuning in for Kesko's Q3 2024 release call.
Today's headline is a turn for better in building and technical trade.
Other divisions did well as well, but we wanted to highlight the building and technical trade of the many harsh quarters.
Our agenda today is the following, President and CEO Jorma Rauhala will give the Q3 presentation we have here together with us, Business Division Presidents Ari Akseli for Grocery Trade, Sami Kiiski for Building and Technical Trade, and Johanna Ali for Car Trade as well as CFO Anu Hämäläinen.
After Jorma's presentation, it is time for questions both by phone and via chat function.
All the materials related to Q3 can be found at our web page, Kesko.FI under Investors. My name is Hanna Jaakkola responsible for IR at Kesko. I will be at your service after the presentation for your questions and discussions. But now Jorma, the virtual state is yours, please.
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