Kesko Oyj Reports Steady Profit Development and Updates Guidance

Kesko Oyj reported steady profit development in Q2 2025, with a turnaround in the construction cycle slower than anticipated. The company's guidance was also updated. Kesko's business division Presidents, including Ari Akseli for Grocery Trade, Sami Kiiski for Building and Technical Trade, and Johanna Ali for Car Trade, were present at the conference call. Kesko's CFO, Anu Hamalainen, was also in attendance.

Kesko Oyj reported steady profit development in the second quarter (Q2) of 2025, with a turnaround in the construction cycle slower than previously anticipated. The company's financial performance, as detailed in its half-year financial report, showed a 3.1% increase in reported net sales and a 1.3% growth in comparable net sales for the April-June period [1].

The comparable operating profit for Q2 2025 totaled €176.7 million, an increase from €178.3 million in the same period last year. Excluding the impact of Kesko Senukai, the comparable operating profit increased from €171.9 million in Q2 2024 [1]. The operating profit for Q2 2025 was €177.9 million, up from €159.2 million in the same period last year. Cash flow from operating activities stood at €323.9 million, compared to €309.0 million in the previous year [1].

For the January-June period, Kesko's group net sales totaled €6,016.5 million, a 2.8% increase from €5,852.9 million in the same period last year. Comparable net sales grew by 1.2% over the same period. The comparable operating profit for the first half of 2025 was €272.3 million, an increase from €277.7 million in the first half of 2024 [1].

Kesko's business division presidents, including Ari Akseli for Grocery Trade, Sami Kiiski for Building and Technical Trade, and Johanna Ali for Car Trade, attended the conference call. The company's CFO, Anu Hamalainen, also participated. Kesko's outlook for 2025 includes an estimated comparable operating profit of €640-700 million, a slight adjustment from the previous estimate of €640-740 million [1].

The company's performance in the grocery trade division saw net sales of €1,606 million and a comparable operating profit of €111 million. The building and technical trade division reported net sales of €1,237 million and a comparable operating profit of €51 million. The car trade division had net sales of €352 million and a comparable operating profit of €22 million [1].

The company's guidance reflects a challenging but improving operating environment in 2025. Key uncertainties include developments in consumer confidence, investment appetites, geopolitical crises, and the slower-than-anticipated recovery in the construction cycle. Kesko's interim report for the first nine months of 2025 will be published on October 30, 2025 [1].

References:
[1] https://uk.marketscreener.com/news/kesko-half-year-financial-report-1-1-30-6-2025-steady-profit-development-turnaround-in-construct-ce7c5cdcdd81ff2d
[2] https://www.tradingview.com/news/reuters.com,2025-07-22:newsml_WkrbSsnYk:0-kesko-half-year-financial-report-1-1-30-6-2025-steady-profit-development-turnaround-in-construction-cycle-slower-than-previously-anticipated/