Kesko (KESKOB) Q1 2026 earnings summary

Executive summary

• Net sales grew to €3,029 million in Q1 2026, with year-over-year growth of 7.1% reported and 4.6% comparable, and profit improvement across all divisions.

• Comparable operating profit rose to €102.0 million, up €6.5 million from Q1 2025, with strong performance in grocery and building/technical trade.

• All divisions—grocery, building and technical trade, car trade, and sports trade—reported sales growth and market share gains despite a challenging market environment.

• Cash flow from operating activities improved significantly to €77.7 million from -€24.5 million a year earlier.

• Strategic actions in grocery trade led to increased market share and profitability.

Financial highlights

• Net sales: €3,029 million in Q1 2026, up from €2,827.7 million in Q1 2025; comparable net sales up 4.6%, reported up 7.1%.

• Comparable operating profit: €102.0 million (Q1 2025: €95.6 million); operating margin stable at 3.4%.

• Earnings per share: €0.14 (comparable), €0.13 (reported).

• Return on capital employed (ROCE): 14.8% (Group, Q1 2026 rolling 12 months); comparable ROCE 10.2%, ROE 17.1%.

• Capital expenditure totaled €113.5 million, mainly in store sites and logistics.

Outlook and guidance

• 2026 comparable operating profit expected at €650–750 million, with improved profit guidance.

• Operating environment and performance expected to improve in all divisions and countries, though challenges remain.

• Grocery trade margin expected to stay above 6%; building/technical trade and car trade profits forecast to improve.

• Key uncertainties: consumer confidence, investment appetite, and geopolitical/geopolitical risks.