Kesko Oyj

Q3 performance: profit improved strongly, driven by Technical Trade (headline) - Kesko reported net sales ~EUR 3.4bn in Q3 (+EUR 167m), and comparable operating profit EUR 231.4m (reported operating margin 6.8%). - Comparable operating profit increased in all three divisions, with the largest profit improvement in Building & Technical Trade, especially Technical Trade / Onninen. - Cash flow: operating cash flow EUR 331.4m, strengthened notably on higher earnings; CapEx EUR 95m (clearly below Q3 2025). - Balance sheet: net debt / EBITDA improved to 1.5 (vs 1.7 end of last quarter), well below target max 2.5.

Division highlights (what’s working vs mixed) - Grocery Trade (K Group + Kespro): net sales ~EUR 1.7bn (+EUR 45m); comparable operating profit EUR 118.9m (+EUR 1.4m), margin ~7%. - Market share gains continued: K Group grocery sales +1.8%; all K Group chains gained share in their segments in 2026. - Kespro foodservice: net sales down ~1% (decline in foodservice). - Building & Technical Trade: net sales >EUR 1.3bn (+EUR 94m), comparable terms +6.4%. - Comparable operating profit EUR 93.8m (+EUR 22.1m YoY); margin 7.1%. - Technical Trade strength: comparable technical trade net sales +10.5%; B2B demand improved (industrial projects, data centers, infrastructure). - Building & home improvement mixed: profit fell in Finland (muted B2C/new housing), but improved in Denmark, Sweden, Norway. - Car Trade: net sales EUR 384m (+EUR 29m); comparable operating profit EUR 23.5m (+EUR 0.8m), margin 6.1%. - Demand improved: new car registrations +14.5%; K-Auto order book up ~70% YoY (conversion depends on vehicle availability / delivery lead times).

Guidance & outlook (forecasts investors should track) - 2026 profit guidance raised: comparable operating profit EUR 690m–730m (previously EUR 670m–730m). - Important: guidance excludes impacts from the Dahl acquisition. - 2027 outlook: operating environment, net sales, and comparable operating profit estimated to improve in all divisions and all operating countries. - Grocery: B2C slightly up, foodservice stable; grocery margin expected clearly >6% despite investments; grocery operating profit to improve vs 2026. - Building & Technical: cycle gradually improving but new housing still muted; division profit expected to improve vs 2026 even excluding Dahl impact. - Car trade: new car demand expected to pick up; net sales and profit expected to improve vs 2026.