Q1 2025 Kesko Oyj Earnings Call Transcript
Key Points
- Kesko Oyj (KKOAF) reported an increase in net sales for Q1 2025, totaling over EUR 2.8 billion, up by EUR 68 million.
- The car trade division saw a rise in both net sales and profit, supported by a balanced product and service portfolio.
- Building and technical trade experienced growth, particularly in the B2B segment, with significant sales increases in Finland, Denmark, and Norway.
- The acquisition of Roslev Trælasthandel was completed, and the Danish competition authorities approved the acquisition of CF Petersen and Søn without conditions.
- Kesko Oyj (KKOAF) maintained a strong financial position with a net debt to EBITDA ratio of 1.6%, below the maximum target of 2.5%.
- Comparable operating profit decreased in the grocery trade division, impacted by the timing of Easter and the implementation of a price program.
- There was a seasonal increase in working capital, affecting cash flow, particularly due to increased inventory in building and technical trade.
- Grocery trade net sales decreased by EUR 29 million, with a decline in K Group's market share from 34.3% in 2023 to 33.7% in 2024.
- Expenses rose mainly due to acquisitions, with personal expenses being the largest cost increase.
- The Polish market showed a negative sales trend in the building and technical trade division, with a market decline of 2%.
Dear all, warmly welcome virtually to Helsinki, and thank you for tuning in for Kesko's Q1 2025 release call. Today's headline is stable performance during the slowest quarter of the year, and it describes well the first quarter. Our agenda today is the following, President and CEO Jorma Rauhala will first give the Q1 presentation. We have here together with us our business division Presidents, Ari Axeli for grocery trade, Sami Kiiski for building and technical trade, and Johanna Ali for car trade as well as our CFO, Anu Hämäläinen.
After Jorma's presentation, it is time for questions both by phone and via chat function. All the materials related to Q1 can be found at our web pages Kesko.fi under investors.
My name is Hannah Jaakkola responsible for IR at Kesko. I will be at your service after the presentation for questions and discussions, but now, Jorma, the virtual stage is yours, please.
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