Kesko Oyj Class A · OMXHEX:KESKOA
Kesko Oyj Class A — Q4 2024 Earnings Presentation
28 slides from Kesko Oyj Class A's earnings presentation, Feb 5, 2025
Slide 1: Kesko Financial Statements Release 2024
KESKO FINANCIAL STATEMENTS RELEASE 2024 YEAR-END TURNAROUND – QUARTER-RESULT IMPROVED FOR THE FIRST TIME IN EIGHT QUARTERS Jorma Rauhala President and CEO 5 February 2025
Slide 2: Summary of 2024
SUMMARY OF 2024 • Year-end turnaround: quarter result in Q4 up for the first time in eight quarters 2024 2023 • Highlights for full-year 2024: Net sales, € million 11,920.1 11,783.8 • Net sales increased, comparable operating profit decreased Change in net sales, %* -2.3 -0.8 • Grocery trade: net sa
Slide 3: Net Sales 2024
NET SALES 2024 GROUP DIVISIONS € million € million Change, comparable -2.3% 0.4% -6.0% -4.0% 3
Slide 4: Operating Profit 2024
OPERATING PROFIT 2024 GROUP DIVISIONS € million € million Operating margin 6.0% 5.5% 7.0% 6.9% 5.1% 3.9% 6.5% 5.7% 4 Comparable figures
Slide 5: Return on Capital Employed
RETURN ON CAPITAL EMPLOYED % 5 Comparable figures
Slide 6: Financial Position
FINANCIAL POSITION Cash flow almost flat year-on-year 2024 2023 Cash flow from operating activities, € million 1,008.2 1,049.5 Liquid assets, € million 488.1 227.3 Capital expenditure, € million 675.9 678.9 Interest-bearing net debt excl. lease liabilities, € million 857.2 561.9 Interest-bearing net
Slide 7: Capital Expenditure
CAPITAL EXPENDITURE Main CAPEX: the Davidsen acquisition, Onnela logistics centre, store site investments 2024 2023 Store sites, € million 289.2 300.3 Acquisitions, € million 172.9 141.1 IT, € million 18.0 25.0 Other investments, € million 195.8 212.5 Total, € million 675.9 678.9 7
Slide 8: Expenses
EXPENSES Expenses up due to the Davidsen acquisition and real estate costs 2024 2023 Fixed costs, € million 2,076.4 1,959.1 - Employee benefit expenses, € million 838.1 779.1 - Other expenses, € million 673.1 646.6 - Depreciation, € million 565.2 533.3 Cost ratio, % 17.4 16.6 8 Figures excluding ite
Slide 9: Q4/2024 First Quarter-Result Improvement in Eight Quarters
Q4/2024 FIRST QUARTER-RESULT IMPROVEMENT IN EIGHT QUARTERS 9
Slide 10: Net Sales Q4
NET SALES Q4 GROUP DIVISIONS € million € million Change, comparable 1.1% 1.2% -1.7% 9.7% 10
Slide 11: Operating Profit Q4
OPERATING PROFIT Q4 GROUP DIVISIONS € million € million Operating margin 5.9% 5.6% 7.6% 7.4% 4.2% 3.4% 4.8% 6.1% 11 Comparable figures
Slide 12: Grocery Trade Q4: Stable Performance
GROCERY TRADE Q4 STABLE PERFORMANCE 12
Slide 13: Grocery Trade Highlights in Q4
GROCERY TRADE HIGHLIGHTS IN Q4 • Net sales grew, operating margin at a good level • K Group grocery sales up by 1.6% • Kespro's net sales up by 2.5%, again exceeding market growth • K-Citymarket non-food sales down by 1.0% • Online grocery sales up by 7.6% • Total grocery market growth approx. 2.8%
Slide 14: Price Programme Introduced in Stores in Line with Strategy
PRICE PROGRAMME INTRODUCED IN STORES IN LINE WITH STRATEGY • Price programme rolled out in January 2025: price cuts on 1,200 products in K Group grocery stores – Kesko and K-retailers together investing nearly €50 million during 2025 • Prices cut on some 1,000 branded everyday staples and some 200 p
Slide 15: Increased Focus on Quality
INCREASED FOCUS ON QUALITY K Group the quality leader in Finnish grocery • Our unique retailer business model enables constant development of store-specific business ideas and quality • Store-specific business ideas generated utilising customer data based on customer profiles for local residents and
Slide 16: Strengthening Our Store Network as Planned
STRENGTHENING OUR STORE NETWORK AS PLANNED • Investments in the store network continue, impact set to become visible especially towards the end of Kesko’s 2024-2026 strategy period • Kesko invests on average €200-250 million annually in store updates and new stores • In 2024: 44 remodelled stores an
Slide 17: Building and Technical Trade Q4: Result in Line with Expectations
BUILDING AND TECHNICAL TRADE Q4 RESULT IN LINE WITH EXPECTATIONS 17
Slide 18: Building and Technical Trade Highlights in Q4
BUILDING AND TECHNICAL TRADE HIGHLIGHTS IN Q4 • Construction cycle still weak, sales development improved in all countries towards year-end: Q4/2024 Q4/2023 • Denmark and Poland: sales improved markedly Net sales, € million 1,056.3 971.1 • Finland: sales development of K-Rauta and Onninen at the Q3
Slide 19: Sales of K-Rauta Finland and Onninen Finland
SALES OF K-RAUTA FINLAND AND ONNINEN FINLAND Retail and B2B sales 19
Slide 20: Byggmakker Sales in Norway: 2020-2024
BYGGMAKKER SALES IN NORWAY: 2020-2024 Retail and B2B sales 20
Slide 21: Car Trade Q4: Profit Improved in a Challenging Market
CAR TRADE Q4 PROFIT IMPROVED IN A CHALLENGING MARKET 21
Slide 22: Car Trade Highlights in Q4
CAR TRADE HIGHLIGHTS IN Q4 K-AUTO, NET SALES • Market demand for new cars muted, Q4 first registrations of passenger cars and vans -3.0%; first registrations of brands represented by Kesko up by 10% • Net sales and comparable operating profit grew clearly despite the challenging market • New cars: s
Slide 23: Profit Guidance and Outlook for 2025
PROFIT GUIDANCE AND OUTLOOK FOR 2025 23
Slide 24: 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 25: 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
Slide 26: Dividend Proposal
DIVIDEND PROPOSAL 26
Slide 27: Board's Dividend Proposal to Kesko's Annual General Meeting
BOARD'S DIVIDEND PROPOSAL TO KESKO’S ANNUAL GENERAL MEETING 100% 96% 96% 85% 77% 74% 70% 80% 81% Accounting for share split 2016 comparable EPS, Group; 2017-2019 comparable EPS, continuing operations 27
Slide 28: Al
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