Kesko Posts ‘Record' Results In Third Quarter Of 2020
Finnish retailer Kesko has reported net sales of €2.65 billion, up 4.6% year-on-year in comparable terms, in the third quarter of its financial year.
The company’s comparable operating profit increased by €38.2 million to €181.8 million when accounting for the change in the consolidation method of Kesko Senukai Group.
Kesko reported Kesko Senukai Group as a joint venture as of 1 July 2020. Until 30 June 2020, it was reported as a subsidiary of the company.
It is a part of Kesko’s building and technical trade segment and operates in the Baltic countries and Belarus.
'All-Time Record Result'
The company, which is celebrating its 80th anniversary this year, described its performance for the quarter as an 'all-time record result'.
President and CEO Mikko Helander, commented, “The results for the third quarter of 2020 were the best in Kesko’s history. Sales grew in all divisions.
“Cash flow from operating activities totalled €286.6 million and grew by €95.0 million. We were also able to meet our long-term financial targets faster than we had anticipated.”
The retailer continued to strengthen its market share in grocery sales and food service during the quarter.
Sales in Kesko’s grocery stores increased by 11.4%, while K-Citymarket’s home and speciality goods trade all witnessed growth in sales amid the pandemic.
'Safe And Successful Shopping'
Helander added, “Despite the exceptional circumstances, we have managed to offer safe and successful shopping for our customers, complemented by inspiring digital services that make life easier, such as online grocery sales.
“The positive customer experiences are reflected in the good sales development of all K Group grocery store chains.”
In the January to September period, net sales for the Group's continuing operations amounted to €8.01 million, registering a year-on-year growth of 3.3% on a comparable basis.
The reported new sales growth remained flat compared to the same period last year.
The company generated a comparable operating profit of €402.1 million, up by €74.4 million from the same period last year.
The company has estimated a comparable operating profit in the range of €530-570 million in 2020 for its continuing operations.
It is optimistic about its performance in the grocery, building and technical trade for the remaining part of the year but remains cautious about the spread of the pandemic.
Helander explained, “The COVID-19 epidemic has remained under control in all of Kesko’s operating countries. However, concerns over [rising COVID-19 infections] and general economic weakening remain high.”