Q2 2025 Kesko Oyj Earnings Call Transcript
Key Points
- Kesko Oyj (KKOYY) reported a steady profit development in Q2 2025, with net sales increasing by EUR95 million to over EUR3.2 billion.
- The grocery trade division saw net sales increase, and the company gained market share in the hypermarket segment.
- Car trade division experienced significant profit improvement, with net sales increasing in new and used cars, and a strong performance in Volkswagen's EV models.
- The company completed acquisitions in Denmark, expanding its building and home improvement trade network, which is expected to yield synergies post-integration.
- Kesko Oyj (KKOYY) maintained a strong financial position with a net debt to EBITDA ratio of 1.8, well below the maximum target of 2.5.
- The turnaround in the construction cycle was slower than anticipated, impacting the building and technical trade division's performance.
- Comparable operating profit in the grocery trade division decreased slightly, despite an increase in net sales.
- Market demand for new cars remained muted, affecting the overall growth potential in the car trade division.
- Expenses increased mainly due to acquisitions, although expenses excluding acquisitions were up by only 0.6%.
- The company's profit guidance for 2025 was adjusted, lowering the top end due to slower recovery in the building and technical trade sector.
Dear all, welcome to Kesko's Q2 2025 release call and also welcome to warm Helsinki, at least virtually. Today's headline is Steady Profit Development. Turn around in construction cycle slower than previously anticipated, and it describes the Q2 and also our guidance update well.
Our agenda today is the following. President and CEO, Jorma Rauhala will give the Q2 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 our CFO, Anu Hamalainen.
After Jorma's presentation, it is time for questions both by phone and via chat function. All the materials related to Q2 can be found at our website kesko.fi under investors.
My name is Hanna Jaakkola responsible for IR at Kesco. I will be at your service after the presentation for your questions and discussions, but now, Jorma, the virtual stage is yours.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
