Kesko Oyj Class A · OMXHEX:KESKOA
Kesko Oyj Class A — Q2 2025 Earnings Presentation
30 slides from Kesko Oyj Class A's earnings presentation, Jul 22, 2025
Slide 1: Kesko Half-Year Financial Report 2025
KESKO HALF-YEAR FINANCIAL REPORT 2025 STEADY PROFIT DEVELOPMENT – TURNAROUND IN CONSTRUCTION CYCLE SLOWER THAN PREVIOUSLY ANTICIPATED Jorma Rauhala President and CEO 22 July 2025
Slide 2: Summary of Q2/2025
SUMMARY OF Q2/2025 • Net sales increased, profit improved by nearly €5 million in comparable terms* • Grocery trade: net sales increased, comparable operating profit decreased Q2/2025 Q2/2024 slightly. Profit improved in chain operations, but decreased in Kespro and Net sales, € million 3,188.8 3,09
Slide 3: Net sales
NET SALES €+95 million 11,920 12,084 3,189 12,000 3,093 3,027 3,041 3,000 2,828 2,759 10,000 8,000 € million 2,000 € million 6,000 4,000 1,000 2,000 0 0 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 2024 Q2/2025 rolling 12 months 3
Slide 4: Operating profit
OPERATING PROFIT Comparable operating profit increased €-1.5 million (€+4.8 million excl. Kesko Senukai) 650.1 644.7 600.0 201.5 200 178.3 176.7 170.8 € million € million 400.0 99.5 95.6 100 200.0 0 0.0 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 2024 Q2/2025 rolling 12 months Operating 6.7% 3.4% Operating
Slide 5: Return on capital employed
RETURN ON CAPITAL EMPLOYED 16.0 14.9 14.9 15 13.8 11.3 10.7 10 7.8 7.4 % 5 0 Grocery trade Building and technical trade Car trade Group 2024 Q2/2025 rolling 12 months 5 Comparable figures
Slide 6: Financial position
FINANCIAL POSITION Q2/2025 Q2/2024 Cash flow from operating activities, € million 323.9 309.0 Liquid assets, € million 190.5 354.4 Capital expenditure, € million 317.6 128.4 Interest-bearing net debt excl. lease liabilities, € million 1,346.6 847.3 Interest-bearing net debt / EBITDA (excl. IFRS 16 i
Slide 7: Capital expenditure
CAPITAL EXPENDITURE Main CAPEX: acquisitions, investments in store sites and the Onnela logistics centre Q2/2025 Q2/2024 Store sites, € million 92.3 68.3 Acquisitions, € million 151.4 - IT, € million 6.5 4.3 Other investments, € million 67.3 55.8 Total, € million 317.6 128.4 7
Slide 8: Expenses
EXPENSES Expenses have increased mainly due to acquisitions – without acquisitions, expenses are up by just 0.6% Q2/2025 Q2/2024 Fixed costs, € million 545.3 531.5 - Employee benefit expenses, € million 233.1 217.9 - Other expenses, € million 172.2 172.5 - Depreciation, € million 139.9 141.1 Cost ra
Slide 9: Grocery trade Q2: Stable sales and profit performance
GROCERY TRADE Q2 STABLE SALES AND PROFIT PERFORMANCE 9
Slide 10: Grocery trade net sales
GROCERY TRADE NET SALES €+9 million 6,500 6,381 6,362 1,661 1,596 1,609 1,606 1,515 1,486 6,000 1,500 5,500 € million € million 1,000 5,000 500 4,500 0 4,000 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 2024 Q2/2025 rolling 12 months 10
Slide 11: Grocery trade operating profit
GROCERY TRADE OPERATING PROFIT €-3.2 million 438.0 425.1 400 118.8 122.2 120 114.5 111.3 300 € million € million 90 82.5 72.8 200 60 100 30 0 0 2024 Q2/2025 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 rolling 12 months Operating Operating 5.4% 7.2% 7.4% 7.4% 4.9% 6.9% 6.9% 6.7% margin margin 11 Comparable f
Slide 12: Grocery trade highlights in Q2
GROCERY TRADE HIGHLIGHTS IN Q2 • Net sales increased, comparable operating profit improved in chain operations, but decreased in Kespro and K-Citymarket’s speciality goods trade (non-food) • K Group grocery sales up by 2.0%, partly impacted by the timing of Easter, which fell on April this year and
Slide 13: Kesko's hypermarkets are large urban grocery stores
KESKO'S HYPERMARKETS ARE LARGE URBAN GROCERY STORES • Growth in Finnish grocery trade is the strongest in larger • Each K-Citymarket has a store-specific business idea tailored stores to local customer base, complementing efficient chain • Kesko's K-Citymarket chain currently has 82 stores operation
Slide 14: Extensive programme to revamp K-Citymarket's non-food trade
EXTENSIVE PROGRAMME TO REVAMP K-CITYMARKET’S NON-FOOD TRADE • The objective is to have a more store-specific approach also in non-food sales, and to support the business idea for food trade utilising data • Changes supporting regular convenient shopping, new display solutions • In terms of product c
Slide 15: Building and technical trade Q2: Cycle is turning, but recovery slower
BUILDING AND TECHNICAL TRADE Q2 CYCLE IS TURNING, BUT PACE OF RECOVERY IS SLOWER THAN PREVIOUSLY ANTICIPATED 15
Slide 16: Building and technical trade net sales
BUILDING AND TECHNICAL TRADE NET SALES €+33 million 4,454 4,352 1,237 4,000 1,204 1,200 1,128 1,056 1,033 964 € million € million 800 3,000 400 0 2,000 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 2024 Q2/2025 rolling 12 months 16
Slide 17: Building and technical trade operating profit
BUILDING AND TECHNICAL TRADE OPERATING PROFIT Comparable operating profit increased €-5.2 million (€+1.1 million excl. Kesko Senukai) 200 169.1 168.8 70.1 € million € million 60 56.1 50.9 100 36.1 30 11.7 6.8 0 0 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 2024 Q2/2025 rolling 12 months Operating 0.7% 4.7%
Slide 18: Building and technical trade highlights in Q2
BUILDING AND TECHNICAL TRADE HIGHLIGHTS IN Q2 • Division result improved year-on-year excluding the profit impact from Kesko Senukai Q2/2025 Q2/2024 • In building and home improvement trade, comparable sales growth was weaker than anticipated. Due to Net sales, € million 1,236.8 1,203.7 slow recover
Slide 19: Sales of K-Rauta Finland and Onninen Finland
19 -25% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% B2B sales Retail and Q1/2019 Q2/2019 Q3/2019 Q4/2019 Q1/2020 Q2/2020 Q3/2020 Q4/2020 Q1/2021 Q2/2021 Q3/2021 Q4/2021 Q1/2022 Q2/2022 Q3/2022 Q4/2022 Q1/2023 Q2/2023 Q3/2023 Q4/2023 Q1/2024 AND ONNINEN FINLAND Q2/2024 SALES OF K-RAUTA FINLAND Q3/2024 Q
Slide 20: Byggmakker sales in Norway
20 -25% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% B2B sales Retail and Q1/2020 Q2/2020 Q3/2020 Q4/2020 Q1/2021 Q2/2021 Q3/2021 Q4/2021 Q1/2022 Q2/2022 Q3/2022 Q4/2022 Q1/2023 Q2/2023 Q3/2023 Q4/2023 Q1/2024 Q2/2024 Q3/2024 Q4/2024 BYGGMAKKER SALES IN NORWAY Q1/2025 Q2/2025 Byggmakker
Slide 21: Nationwide building and home improvement trade network in Denmark post acquisitions
NATIONWIDE BUILDING AND HOME IMPROVEMENT TRADE NETWORK IN DENMARK POST ACQUISITIONS ACQUISITIONS IN 2025 KESKO IN DENMARK Roslev Trælasthandel • Kesko expanded its operations to • Completed on 31 Jan. 2025 Denmark by acquiring the builders' • Net sales 2024: €103 million merchant chain Davidsen on 3
Slide 22: Car trade Q2: Significant profit improvement
CAR TRADE Q2 SIGNIFICANT PROFIT IMPROVEMENT 22
Slide 23: Car trade net sales
CAR TRADE NET SALES €+53 million 1,290 400 1,209 352 1,200 329 314 299 295 300 286 900 € million € million 200 600 100 300 0 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 0 2024 Q2/2025 rolling 12 months 23
Slide 24: Car trade operating profit
CAR TRADE OPERATING PROFIT €+6.8 million 80 77.6 69.3 21.6 20.2 20 60 € million 17.8 17.9 € million 16.4 14.9 40 10 20 0 0 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 2024 Q2/2025 rolling 12 months Operating 5.7% 5.0% 6.0% 5.7% 6.1% Operating 6.1% 5.7% 6.0% margin margin 24 Comparable figures
Slide 25: Car trade highlights in Q2
CAR TRADE HIGHLIGHTS IN Q2 K-AUTO, NET SALES • Market demand for new cars still muted, Q2 first registrations of New cars Used cars Services passenger cars and vans down by 0.4%; first registrations of brands represented by Kesko up by 32.6% in Q2 17% • The updated strategy with focus on three car t
Slide 26: Strong range has underpinned the good sales development
STRONG RANGE HAS UNDERPINNED THE GOOD SALES DEVELOPMENT Volkswagen ID. 4 Volkswagen ID. 7 Audi Q4 e-tron 26
Slide 27: Specified profit guidance and outlook for 2025
SPECIFIED PROFIT GUIDANCE AND OUTLOOK FOR 2025 27
Slide 28: Profit guidance for 2025
PROFIT GUIDANCE FOR 2025 Kesko Group’s profit guidance is given for the year 2025, in comparison with the year 2024. Kesko’s operating environment is estimated to improve in 2025, but to still remain somewhat challenging. Kesko’s comparable operating profit is estimated to improve in 2025. Kesko est
Slide 29: Outlook for 2025
OUTLOOK FOR 2025 In grocery trade, B2C trade and the foodservice market are estimated to remain stable. In 2025, the comparable operating margin for the grocery trade division is estimated to stay clearly above 6% despite the investments in price and the store site network in accordance with Kesko’s
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