Q4 2024 Kesko Oyj Earnings Call Transcript
Key Points
- Kesko Oyj (KKOYF) reported a turnaround in Q4 2024, marking the first quarter of positive results after eight consecutive quarters of decline.
- Net sales for 2024 totaled over EUR11.9 billion, with an increase in grocery trade net sales.
- Kesko expanded its market presence in Denmark through acquisitions, increasing its market share in the Danish building and home improvement sector to approximately 20%.
- The company maintained a strong financial position with a net debt to EBITDA ratio of 1.1, well below the maximum target of 2.5.
- Kesko's grocery trade division saw a 7.6% growth in online grocery sales, driven by fast deliveries and strategic price investments.
- Comparable operating profit for 2024 decreased by EUR62 million, with declines in all divisions.
- The building and technical trade division faced a historically low cycle, impacting net sales and operating profit.
- Kesko made a EUR40 million goodwill write-down for its Norwegian operations due to weaker than anticipated profit development and high interest rates.
- The car trade division experienced a decrease in net sales and profit, despite a good level of profitability.
- Return on capital employed decreased to 11.3% compared to 2023, reflecting a decline in earnings across all divisions.
Dear all, warmly welcome, virtual to Helsinki and thank you for tuning in for Kesko's Q4 2024 release call. Today's headline is yearend turn-around quarter result up for the first time in eight quarters. This is good news. After two years of declining quarter results.
Our agenda today is the following.
Kesko's President and CEO Jorma Rauhala will first give the full year and Q4 presentation. We have here together with us, our 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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