Finnish Retailer Kesko Reports ‘Strongest Ever’ Q2 Performance
Finnish retailer Kesko has posted what it described as its ‘all-time best’ Q2 performance, as it posted net sales of €2.78 billion for the period, boosted by the performance of its grocery arm.
Operating profit for the quarter stood at €122.5 million, up from €113.2 million the previous year, while operating margin stood at 4.4%.
Group net sales for the half-year period January to June stood at €5.18 billion (up from €5.09 billion), an increase of 0.8 in comparable terms.
In a statement, Kesko said that grocery trade ‘continued to outpace the market’ across all its chains, with profitability boosted by both a growth in sales and continued improvements in cost-efficiency.
Online sales also continued to grow at the business, by 119%.
During the reporting period, the business acquired Heinon Tukku, with Kesko president and CEO Mikko Helander saying that once completed, “the acquisition will be an excellent addition to complement Kespro’s current service offering and will significantly improve our customer service in the greater Helsinki area.”
Helander said that the company’s results indicate that the strategy the business established in 2015 is working.
“We will continue the determined execution of that strategy, and we expect our net sales to grow and profitability to improve further,” he said.
“In addition to profitable growth, we are strengthening our corporate responsibility efforts in all areas, and actively work together with others in mitigating climate change.”
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.