Kesko Oyj Class A · OMXHEX:KESKOA
Kesko Oyj Class A — Q3 2024 Earnings Presentation
27 slides from Kesko Oyj Class A's earnings presentation, Oct 30, 2024
Slide 1: A Turn for the Better in Building and Technical Trade
KESKO INTERIM REPORT Q3/2024 A TURN FOR THE BETTER IN BUILDING AND TECHNICAL TRADE Jorma Rauhala President and CEO 30 October 2024
Slide 2: Key Events in Q3/2024
KEY EVENTS IN Q3/2024 • Net sales increased, comparable operating profit decreased Q3/2024 Q3/2023 • Building and technical trade net sales increased. A turnaround can 3,026.6 2,949.1 Net sales, € million be seen: year-on-year result increased for the first time in 8 quarters -0.8 -2.7 Change in net
Slide 3: Net Sales
NET SALES €+77 million € million € million rolling 12 months 3
Slide 4: Operating Profit
OPERATING PROFIT €-6.6 million € million € million rolling 12 months Operating Operating margin 4.5% 6.7% 7.1% 5.9% 3.6% 5.8% 6.7% margin 6.0% 5.5% 4 Comparable figures
Slide 5: Return on Capital Employed
RETURN ON CAPITAL EMPLOYED % rolling 12 months 5 Comparable figures
Slide 6: Financial Position
FINANCIAL POSITION Increase in working capital impacted cash flow in Q3 Q3/2024 Q3/2023 Cash flow from operating activities, € million 285.6 394.9 Liquid assets, € million 219.9 169.6 Capital expenditure, € million 109.4 127.5 Interest-bearing net debt excl. lease liabilities, € million 855.8 559.8
Slide 7: The Onnela Logistics Centre
THE ONNELA LOGISTICS CENTRE • The Onnela logistics centre in Hyvinkää, Finland is the biggest construction project in Kesko’s history and a notable investment in future growth • The centre will serve both Onninen's technical trade and K-Auto's spare parts business; implementation in stages from Q3/2
Slide 8: Expenses
EXPENSES Expenses up due to the Davidsen acquisition and real estate costs Q3/2024 Q3/2023 Fixed costs, € million 484.1 451.9 - Employee benefit expenses, € million 192.7 176.1 - Other expenses, € million 149.9 140.5 - Depreciation, € million 141.5 135.3 Cost ratio, % 16.0 15.3 8 Figures excluding i
Slide 9: Grocery Trade: Stable Performance
GROCERY TRADE STABLE PERFORMANCE 9
Slide 10: Grocery Trade Net Sales
GROCERY TRADE NET SALES €+16 million € million € million rolling 12 months 10
Slide 11: Grocery Trade Operating Profit
GROCERY TRADE OPERATING PROFIT €+0.5 million € million € million rolling 12 months Operating Operating margin 5.6% 7.3% 7.4% 7.6% 5.4% 7.2% 7.4% margin 7.0% 6.9% 11 Comparable figures
Slide 12: Key Events in Grocery Trade in Q3
KEY EVENTS IN GROCERY TRADE IN Q3 • Net sales and profit increased, operating margin flat year-on-year • K Group grocery sales down by 0.1% • Kespro's net sales up by 3.1%, again exceeding market growth • K-Citymarket non-food sales down by 4.1% • Online grocery sales up by 13.9% thanks to express d
Slide 13: Strategy Execution Proceeding According to Plan
STRATEGY EXECUTION PROCEEDING ACCORDING TO PLAN • Key actions in grocery trade strategy: • Strengthening store-specific business ideas • Developing our store site network • Improving price competitiveness • Impact from stronger store-specific business ideas and investments in price set to become vis
Slide 14: Building and Technical Trade: Better-than-Expected Result
BUILDING AND TECHNICAL TRADE BETTER-THAN- EXPECTED RESULT 14
Slide 15: Building and Technical Trade Net Sales
BUILDING AND TECHNICAL TRADE NET SALES €+78 million € million € million rolling 12 months 15
Slide 16: Building and Technical Trade Operating Profit
BUILDING AND TECHNICAL TRADE OPERATING PROFIT €+0.2 million € million € million rolling 12 months Operating Operating margin 2.9% 6.3% 6.6% 4.2% 0.7% 4.7% 6.2% margin 5.1% 4.1% 16 Comparable figures
Slide 17: Key Events in Building and Technical Trade in Q3
KEY EVENTS IN BUILDING AND TECHNICAL TRADE IN Q3 • Construction cycle still weak, but we have seen a turnaround: result for the division grew for the Q3/2024 Q3/2023 first time in eight quarters Net sales, € million 1,128.0 1,050.3 • Sales have picked up in both building and home improvement trade a
Slide 18: Sales of K-Rauta Finland and Onninen Finland
SALES OF K-RAUTA FINLAND AND ONNINEN FINLAND Retail and B2B sales 18
Slide 19: Byggmakker Sales in 2020-2024
BYGGMAKKER SALES IN 2020-2024 Retail and B2B sales 19
Slide 20: Car Trade: Good Performance in a Challenging Market
CAR TRADE GOOD PERFORMANCE IN A CHALLENGING MARKET 20
Slide 21: Car Trade Net Sales
CAR TRADE NET SALES €-16 million € million € million rolling 12 months Figures incl. sport trade 21
Slide 22: Car Trade Operating Profit
CAR TRADE OPERATING PROFIT €-6.5 million € million € million rolling 12 months Operating Operating margin 6.2% 7.2% 7.8% 4.8% 5.7% 5.0% 6.0% margin 6.5% 5.4% Comparable figures 22 Figures incl. sport trade
Slide 23: Key Events in Car Trade in Q3
KEY EVENTS IN CAR TRADE IN Q3 K-AUTO, NET SALES • Market demand for new cars muted, Q3 first registrations in Finland -24.4% (passenger cars and vans) • Net sales and comparable operating profit decreased as market continued challenging, profitability remained at a good level • New car sales down, b
Slide 24: Profit Guidance for 2024 and Outlook for 2025
PROFIT GUIDANCE FOR 2024 AND OUTLOOK FOR 2025 24
Slide 25: Profit Guidance for 2024 (Specified)
PROFIT GUIDANCE FOR 2024 (SPECIFIED) Kesko Group’s profit guidance is given for the year 2024, in comparison with the year 2023. Kesko’s operating environment is estimated to remain challenging in 2024. Kesko’s net sales and operating profit are estimated to remain at a good level in 2024 despite th
Slide 26: Outlook for 2025
OUTLOOK FOR 2025 Kesko's operating environment is estimated to improve in 2025, and Kesko’s comparable operating profit is also estimated to improve in 2025. In grocery trade, B2C trade and the foodservice market are estimated to remain stable. In 2025, the comparable operating margin for the grocer
Slide 27: Al
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