Kesko (KESKOB) Q1 2026 earnings summary

Executive summary

• Net sales grew to €3,029.0 million in Q1 2026, up 7.1% year-over-year, with all divisions contributing to growth.

• Comparable operating profit increased to €102.0 million, with an operating margin of 3.4%.

• Grocery trade gained market share and maintained strong profitability despite investments; online sales up 10.5%.

• Building and technical trade saw increased sales and profit, especially in Finland and Sweden, despite a challenging market.

• Car trade net sales increased, with improved market position and strong used car sales, though operating profit declined slightly.

Financial highlights

• Comparable net sales rose 4.6% year-over-year; reported net sales up 7.1%.

• Comparable operating profit was €102.0 million; profit before tax €69.6 million; EPS (basic) €0.14.

• Cash flow from operating activities improved to €77.7 million, supported by effective working capital management.

• Capital expenditure totaled €113.5 million, mainly for store network and logistics investments.

• Net debt/EBITDA (excl. IFRS 16) at 1.9; equity ratio at 27.7%.

Outlook and guidance

• Guidance for 2026 maintained: comparable operating profit expected at €650–750 million.

• Operating environment and performance expected to improve in all divisions and countries in 2026.

• Grocery trade profit margin expected to remain above 6% despite ongoing investments.

• Building and technical trade cycle expected to improve moderately; car trade profit to improve as new car order book converts to sales.

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