Q1 2026 Kesko Oyj Earnings Call Transcript
Key Points
- Kesko Oyj (KKOYF) reported strong sales and profit growth across all divisions, marking a positive start to the year.
- The Grocery Trade division gained market share, with net sales increasing by EUR 72 million and online grocery sales up by 10.5%.
- Building and Technical Trade saw an increase in net sales by EUR 114 million, supported by Danish acquisitions, and improved profitability.
- The company maintained a strong financial position with a net debt-to-EBITDA ratio of 1.9, well below the maximum target of 2.5.
- Kesko Oyj (KKOYF) reiterated its guidance for 2026, expecting comparable operating profit to be between EUR 650 million and EUR 750 million.
- Operating profit in the Car Trade division decreased slightly despite strong sales growth, particularly in used cars.
- The ongoing conflict in the Middle East poses a risk to consumer confidence and purchasing power, potentially impacting future performance.
- Expenses increased mainly due to acquisitions, with half of the increase attributed to Danish acquisitions.
- The Building and Technical Trade division faced challenges with muted market demand, especially in new residential construction.
- The company noted potential cost increases in freight and oil-based products, which could impact future profitability if the Middle East conflict prolongs.
Dear all, warmly welcome virtually to Helsinki, and thank you for tuning in for Kesko's Q1 2026 release call. Strong sales and profit in all divisions is our headline. So a good start for the year despite turbulent times. We have the familiar agenda, first, President and CEO, Jorma Rauhala, will give the presentation.
After the presentation, we are happy to take questions from you. We have here with us our business division presidents, Ari Akseli for Grocery Trade; Sami Kiiski for Building and Technical trade; Johanna Ali for Car Trade; as well as CFO, Anu Hamalainen.
The questions can be asked both by phone and via chat function after the presentation. All the materials related to the quarter can be found at our web page, kesko.fi, under Investors. My name is Hanna Jaakkola. I'm responsible for IR at Kesko.
I will be happy to have a discussion and answer your follow-up questions after the presentation. But now, without further ado, Jorma, the virtual stage is yours, please.
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