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Kesko

Kesko Corporation (: Kesko Oyj) is a leading retailing and conglomerate headquartered in , specializing in grocery trade, building and technical trade, and car trade across , , , , , , , and . Founded in October 1940 through the merger of four regional companies—Savo-Karjalan Tukkuliike Oy, Keski-Suomen Tukkukauppa Oy, Kauppiaitten Oy, and Maakauppiaitten Oy—Kesko has evolved from a wholesaler into a major retail operator, managing approximately 1,800 stores and employing around 45,000 people as part of the broader K Group. The company's growth trajectory reflects Finland's post-war economic development, beginning with agricultural and hardware supplies in the 1950s, shifting to grocery in the 1960s, and launching and hypermarkets like Citymarket in the 1970s. By the , Kesko invested heavily in , including new warehouses and stores in cities like and , while expanding its shareholder base significantly. The marked a transition to centralized chain operations, followed by international expansion in the 2000s into the and regions, particularly in building supplies through brands like K-Rauta. Today, Kesko operates as a listed on with a of approximately €7.3 billion as of November 2025, and K Group retail sales of approximately €16 billion in 2024. Its divisions include the grocery sector led by chains such as K-Market and the Pirkka brand, building and technical trade encompassing hardware and machinery under Onninen and K-Citymarket, and car trade through authorized dealerships for brands such as , , and other marques. Kesko emphasizes digital services to enhance customer experiences and has been recognized among the world's most sustainable companies by the Global 100 list since 2005, with commitments to , , and ethical governance. In 2025, Kesko completed its largest logistics project, the Onnela center for Onninen and K-Auto, and plans to open additional stores across its divisions.

Introduction

Company Profile

Kesko is a multinational retail conglomerate founded on October 29, 1940, and headquartered in , . As of December 2024, the company employs approximately 19,000 people. In 2023, Kesko reported net sales of €11.784 billion. The company operates across three main divisions: grocery trade, building and technical trade, and car trade. Its international presence spans eight countries, including , , , , , , , and , with around 1,800 stores engaged in chain operations. Kesko's business model centers on chain operations involving independent retailer entrepreneurs, complemented by B2B wholesale activities and direct retailing through its own outlets. This structure supports the K Group, a collaborative network that enhances procurement, logistics, and market reach in the trading sector across .

Ownership and Governance

Kesko Oyj originated from the merger of four regional wholesaling cooperatives in October 1940, evolving from a structure rooted in retailer-owned entities into a modern listed on since 1960 under the symbols KESKOA for series A shares (each carrying 10 votes) and KESKOB for series B shares (each carrying 1 vote). As of December 31, 2024, Kesko's ownership remains diversified, with no single entity holding a ; the largest shareholder by votes is the K-Retailers' Association (K-kauppiasliitto ry), controlling approximately 7.54% of shares and 19.56% of votes through its related parties, followed by institutional investors such as Mutual Pension Insurance Company and Varma Mutual Pension Insurance Company, each with around 2-3% of shares. households, institutions, and international investors collectively hold the remaining shares, with nominee-registered ownership comprising about 25% of total shares. Kesko's Board of Directors consists of seven members, elected annually by the shareholders' general meeting for a one-year term, with the current composition (as of the 2025 Annual General Meeting) featuring a mix of independent directors and representatives emphasizing expertise in , , and ; the board includes 57% men and 43% women, chaired by Esa Kiiskinen since 2015. The President and CEO is Jorma Rauhala, appointed on February 1, 2024, overseeing the Group Management Board of nine members responsible for operational leadership across divisions. Key governance policies include adherence to the Finnish Corporate Governance Code 2025, with a Shareholders' Nomination Committee comprising representatives from the three largest shareholders to propose board candidates, ensuring and . Kesko aligns its sustainability reporting with the EU Corporate Sustainability Reporting Directive (CSRD), effective from 2024, through oversight by the , which monitors (ESG) integration into business strategy. The company also maintains a diversity policy promoting balanced gender representation and broad expertise on the board.

History

Founding and Early Expansion

Kesko was established on October 14, 1940, through the merger of four retailer-owned regional wholesaling companies aimed at enhancing collaborative purchasing and operational efficiency amid economic pressures following the . The merging entities were Maakauppiaitten Oy, based in and founded in 1906; Kauppiaitten Oy, located in and established in 1907; Oy Savo-Karjalan Tukkuliike, centered in and formed in 1915; and Keski-Suomen Tukkukauppa Oy, operating from since 1917. Business operations officially began on January 1, 1941, with headquarters in Helsinki's Katajanokka district, coinciding with the onset of the as part of . The war severely disrupted supply chains, particularly affecting Oy Savo-Karjalan Tukkuliike due to the loss of eastern Finnish territories to the under the . Amid widespread shortages, implemented strict food from May 1940 onward, covering essentials such as cereals, fats, meat, and milk to sustain the population during hostilities. Kesko prioritized the distribution of these rationed essential goods to its network of retailers, operating under government regulations to ensure equitable supply. During the late 1940s, as wartime constraints eased, Kesko experienced initial expansion in its store network and sales. Post-war rationing and import restrictions initially limited growth, but the company built its K-emblem retailer base, growing from 70 stores at the end of to 163 K-stores by 1950, supported by an increase from 19 to 33 district offices. This foundational phase established Kesko's cooperative model, where retailers held shares and benefited from centralized wholesaling services.

Post-War Growth and Modernization

In the 1960s, Kesko underwent significant structural changes, including its listing on the Stock Exchange in 1960, which broadened its ownership base and transitioned it into a with both exclusive and ordinary shares. This listing provided access to new capital for expansion, while the company modernized its operations by completing a central in 1965 and implementing long-term retail development programs. During this decade, Kesko introduced formats, marking a shift from traditional general stores to more efficient grocery retailing models that catered to evolving consumer demands for fresh foods and convenience. The 1970s brought further modernization to Kesko's wholesale operations, spurred by Finland's , which reduced trade barriers and enabled greater market competition. This period saw the successful launch of chains and the expansion of district networks to support retailers, boosting Kesko's market share in foodstuffs from 23% to nearly 30%. Wholesale activities were streamlined through enhanced and service provisions, allowing Kesko to adapt to economic recovery and trends in . From the to the , Kesko pursued growth through mergers and diversification, including the absorption of smaller entities such as the 1996 acquisition of Kaukomarkkinat Oy, a commercial trading house that strengthened its . The company also entered the and building trade in the by expanding its Builders' Supplies division, which grew steadily into a key segment by the late . By 1999, these efforts culminated in consolidated net sales of EUR 6.1 billion, reflecting Kesko's robust domestic expansion and adaptation to modern retail dynamics.

International Development and Recent Milestones

Kesko began its significant international expansion in the early , focusing on the to diversify beyond its Finnish domestic market. In 2004, Rautakesko, a key , acquired a majority stake in UAB Senuku Prekybos centras (Senukai), Lithuania's largest hardware and building supplies , establishing Kesko as the market leader in the Baltic building materials sector. This move facilitated further penetration into and through similar hardware and agricultural trade operations, where Kesko quickly became a dominant player by leveraging its expertise. The company's push into Nordic countries accelerated in the 2010s, particularly through the building and technical trade division. In 2016, Kesko acquired Onninen, a major B2B wholesaler specializing in electrical, heating, plumbing, and cooling products, which operated in , , and other regions including the Baltics and . This acquisition strengthened Kesko's presence in the wholesale market, adding over 150 units and enhancing its technical trade offerings across borders. By 2025, these efforts had expanded Kesko's operations to eight countries—Finland, , , Estonia, Latvia, Lithuania, , and —primarily through subsidiaries like and Onninen, with approximately 1,800 stores and a focus on . In the 2020s, Kesko navigated global challenges while achieving key milestones, including adaptations to the that drove a surge in . Online grocery sales within the K Group rose from 0.3% of total grocery sales in 2018 to 3.9% by early 2022, fueled by skyrocketing order volumes as physical stores faced restrictions and consumers shifted to digital channels. In 2024, Kesko discontinued operations at 64 K service stations by year-end, transitioning these sites fully to Neste while refocusing on core strengths. Sales momentum continued into 2025, with group sales reaching €1,143.5 million in September, marking a 9.6% increase year-over-year and reflecting robust recovery in grocery and building trades. In Q3 2025 (July-September), net sales totaled €3,227.3 million, up 6.6% year-on-year, with an updated comparable operating profit outlook for the full year of €640-690 million. Sustainability has been integral to Kesko's recent , with ambitious targets guiding operations across its global footprint. The K Group committed to achieving carbon neutrality in its own operations by and zero emissions by 2030, aligning with science-based targets to reduce Scope 1 and 2 by 90% from the 2020 baseline. These goals emphasize emission reductions in supply chains and product use, supporting Kesko's expansion in eco-friendly technical wholesale and sustainable building materials in the Nordics and Baltics.

Business Divisions

Grocery Trade

Kesko's grocery trade division operates a network of retail chains in , focusing on , mid-sized , and hypermarkets to serve diverse customer needs. The primary chains include K-Market, which targets with smaller formats often located in residential areas or rural settings; K-Supermarket, offering mid-sized stores with a broader selection of fresh produce and everyday essentials; and K-Citymarket, functioning as hypermarkets that combine groceries with non-food items like household goods and apparel. As of the end of 2024, these chains comprised 82 K-Citymarket stores, 251 K-Supermarket stores, 730 K-Market stores, and 65 other grocery outlets, totaling 1,128 stores across . In 2025, the division opened 14 new stores (8 K-Market, 4 K-Supermarket, 2 K-Citymarket) and renovated 45 existing ones (6 K-Citymarket, 15 K-Supermarket, 24 K-Market) by September, with further expansions planned, to enhance customer experience and efficiency. The division employs targeted market strategies to maintain competitiveness, emphasizing products and digital integration. The Pirkka brand, Kesko's flagship , encompasses approximately 2,600 products, including and lines like Pirkka Luomu and Pirkka Parhaat, accounting for more than 20% of sales and enabling cost-effective offerings with a focus on quality and health improvements, such as reformulating 89 products in to reduce salt, sugar, and saturated fats. plays a pivotal role through the K-ruoka.fi platform, which generated €294 million in online sales in —representing about 3.7% of total K Group grocery sales—with services available at 780 stores and express deliveries averaging 34 minutes via partnerships like . Online grocery sales grew by 9.9% in Q3 2025. Sustainability initiatives are integral to the division's operations, addressing environmental impacts in packaging and supply chains. Kesko has committed to reducing use by promoting recyclable materials, with 97% of packaging materials already recyclable, and participates in projects to minimize . reduction efforts achieved a 0.45% rate in warehousing and in 2024, targeting 0.22% by 2025, while store-level stood at 1.68% with a goal of 1.10%; overall recycling reached 67%, aiming for 73% by 2025. These measures align with broader goals, including a 50% emissions reduction by 2034 and net-zero by 2050, supported by in facilities. Kesko's grocery trade operations are primarily concentrated in Finland, with the division's net sales reaching €6,381 million in 2024, driven almost entirely by domestic activities. Net sales for January–September 2025 totalled €4,856 million. International footprint remains limited, with no direct retail presence in the Baltics; instead, the company maintains ancillary partnerships and wholesale activities through historical joint ventures, contributing minimally to overall grocery sales as the focus stays on strengthening the Finnish market position.

Building and Technical Trade

Kesko's Building and Technical Trade division encompasses retail and wholesale operations focused on construction materials, tools, and technical supplies, serving both consumer and professional markets across Northern and . The division operates through key brands including K-Rauta for DIY and stores, Onninen for electrical and plumbing wholesale, Byggmakker in , K-Bygg in , Davidsen in , and in the countries. These brands maintain 491 stores in eight countries: , , , , , , , and . The division's business segments include B2C retail, emphasizing home improvement products such as building materials and tools for individual consumers through chains like K-Rauta and , and B2B wholesale, providing professional supplies like electrical, heating, and solutions via Onninen to contractors and businesses. In 2024, the division generated net sales of €4,351.6 million, contributing over 36% to Kesko Group's total net sales of €11,920.1 million. Net sales for January–September 2025 totalled €3,504 million. Growth in the Nordics has been supported by strategic acquisitions enhancing the Byggmakker chain, such as the 2020 purchase of Carlsen Fritzøe Handel AS, which expanded market presence in . In 2025, the division continues to prioritize , with a particular emphasis on materials and energy-efficient solutions to support the transition to low-carbon construction. Onninen, for instance, aims to increase sales of green transition products, including renewable energy components, while integrating criteria into supplier agreements across the division. This focus aligns with broader group targets, such as reducing Scope 1 and 2 emissions and promoting practices in building supplies.

Car Trade

Kesko's Car Trade division encompasses automotive retail and services primarily through its K-Auto , which operates as a leading importer and retailer of passenger and commercial vehicles in and the Baltics. K-Auto handles the import, sales of new and , as well as comprehensive aftersales services including servicing, repairs, and parts distribution, supported by a network of approximately 47 dealership locations across these regions. The division imports and markets key brands such as , , , , , and for passenger cars, along with in , and and in the Baltics, serving over 1.3 million customers with around 1,300 professionals. In addition to core automotive activities, the division integrates leasing services and the K-Lataus network, which provides electric vehicle (EV) charging infrastructure at various K Group store sites to facilitate the transition to sustainable mobility. K-Auto emphasizes aftersales services as a key driver, offering and repair solutions that enhance customer loyalty and vehicle lifecycle management. The division also invests in digital platforms and strategies to streamline vehicle sales, enabling browsing, configuration, and purchases alongside physical experiences. The Car Trade division further includes sports retail operations through the Intersport and Budget Sport chains, which focus on sporting goods and apparel. operates 52 stores in as the market leader in sports trade, while Budget Sport runs 10 outlets specializing in budget-friendly activewear and equipment, contributing to a combined network of around 62 sports locations. This integration allows for synergies in logistics and , though sports retail remains distinct from automotive functions. K-Auto maintains a strong position in the EV market, aligning with Finland's growing electric registrations—reaching 33.8% of passenger car sales in 2023—through targeted offerings and charging infrastructure expansion. In 2024, the division generated net sales of €1,209 million; net sales for – 2025 totalled €1,021 million.

Market Position

Market Share

Kesko holds a significant position in the grocery trade market, with its market share estimated at 36.5% in 2019 according to Nielsen data. Following the 2016 acquisition of Suomen Lähikauppa, the share rose to approximately 40%, reflecting expanded store networks and integration of former competitors. By 2023, the share stood at 34.3%, declining slightly to 33.7% in 2024 amid competitive pressures and shifting consumer behaviors. In the building and technical trade sector, Kesko maintains a leading position in with a of approximately 49% in 2024, rising to 52% as of Q3 2025 through and acquisitions. In the Baltic countries, holds a leading position in building trade, while technical trade is about 3% as of Q3 2025. Kesko's car trade division commands roughly 15% of new vehicle registrations in Finland as of 2023, focusing on brands like and . As of Q3 2025, the division achieved significant gains, with first registrations up 18.2%. Across the region, the overall approximates 10%, with ongoing efforts to expand through mergers and service enhancements. In 2025, Kesko has recorded gains across divisions amid economic recovery. In grocery , development turned positive in Q3, though year-to-date remained at 33.7% as of Q3; in , overall sales increased by 6.9%, with grocery sales up 3.6%. Building continued to capture share in at 52%, while car outperformed market growth in registrations by a wide margin. These trends underscore Kesko's strategic focus on operational efficiency and targeted expansions.

Competitors

In the grocery trade division, Kesko faces intense competition primarily from , a network of regional retailers that holds the largest in at 48.8% as of 2024, operating chains like Prisma and Sokos. 's scale enables it to leverage collective and a dense store network, challenging Kesko's K-supermarket and K-Citymarket formats through competitive pricing and loyalty programs. , a chain, is another key rival, capturing 9.4% in 2024 with aggressive low-price strategies that pressure margins across the sector. Price wars have intensified in 2025 amid weakening consumer , with all major players including Kesko, , and investing heavily in promotions and price reductions to maintain volume. In the building and technical trade division, Kesko competes with international and regional players focused on DIY, home improvement, and wholesale supplies. Kesko leads the hardware and home improvement segment in Finland with approximately 52% market share as of Q3 2025. Bauhaus, a German-based chain, is a major competitor, offering a wide range of building materials through large-format stores and emphasizing competitive pricing for professional and consumer customers. Ahlsell, a Nordic wholesaler specializing in electrical, plumbing, and heating products, rivals Kesko's Onninen unit with its extensive distribution network across Finland and the region, providing efficient supply chain solutions to contractors and installers. Competitive dynamics here highlight supply chain efficiencies, where players like Ahlsell gain edges through rapid delivery and inventory management in a market recovering from construction slowdowns. Kesko's car trade division encounters from specialized used-car retailers and manufacturer-authorized dealers. Kamux, Finland's largest used-car chain, directly challenges Kesko's Auto-K Group stores with a focus on pre-owned , achieving significant scale through online sales and multiple showrooms. Brand-specific dealers, such as those for and , compete in new-car sales by offering direct access to popular models, including hybrids and EVs, through exclusive franchises. The 2025 market is shifting toward electric vehicles, with EVs reaching 34.2% of new registrations in the first half of the year, influencing as dealers adapt to demand for charging infrastructure and sustainable models.

Key Acquisitions and Mergers

Acquisition of Suomen Lähikauppa

In November 2015, Kesko Corporation's Kesko Food Ltd announced an agreement to acquire the entire of Suomen Lähikauppa Oy, the operator of the Siwa and Valintatalo chains, from Triton Partners. The debt-free purchase price was approximately €60 million, and the deal was completed on April 12, 2016, after regulatory approvals. This acquisition added 643 stores to Kesko's portfolio, significantly expanding its presence in Finland's neighborhood grocery market, where Suomen Lähikauppa had generated net sales of around €940 million in 2015 but reported an operating loss of €8 million. Following the acquisition, Kesko initiated a comprehensive process focused on converting the Siwa and Valintatalo stores into its K-Market chain to align with the K Group's branding and operational standards. By spring 2017, more than 400 stores had been converted, with the full of the network completed by the end of that year. Kesko committed to retaining the majority of Suomen Lähikauppa's approximately 4,100 employees during the transition, though negotiations later affected around 570 positions as part of store optimizations. This bolstered Kesko's grocery division by enhancing its dense network of smaller-format stores, particularly in urban and rural areas. The acquisition immediately strengthened Kesko's position in the Finnish grocery market, increasing the K Group's from approximately 33% prior to the deal to 37.7% by , marking its highest level in 15 years. In terms of outcomes, Kesko anticipated annual benefits of €25–30 million at the EBITDA level starting from 2018, driven by efficiencies, optimizations, and reduced administrative overlaps. However, the initial phase presented challenges, including non-recurring restructuring costs of about €30 million for store renovations and network adjustments between 2016 and 2018, which temporarily pressured short-term profitability. Overall, the move supported Kesko's strategy for growth in the grocery trade through organic expansion and targeted store renewals.

Other Significant Acquisitions

In 2002, Kesko's subsidiary Rautakesko signed a to acquire a majority stake in UAB Senukai, Lithuania's leading and building supplies retailer, with the completed in 2003. This move marked Kesko's initial expansion into the region's DIY and building materials sector, where Senukai operated over 20 stores and generated net sales exceeding €150 million in 2002, enabling Kesko to establish the K-Rauta format internationally and build a foundation for regional . Kesko further strengthened its technical wholesale capabilities in 2016 by acquiring the entire of Onninen Oy from Onvest Oy for a debt-free price of €369 million in a share purchase transaction. Onninen, a family-owned founded in , specialized in electrical, heating, , , and products, operating around 150 units and employing approximately 3,200 people across , , , , , and the Baltics at the time of acquisition. The deal integrated Onninen into Kesko's building and technical trade division, boosting combined net sales to €3.6 billion and enhancing Kesko's European for professional customers in the technical sector. Throughout the 2020s, Kesko pursued acquisitions to support divisional growth and international presence. In building and technical trade, the 2023 acquisition of Davidsen Koncernen A/S for approximately €170 million (90% stake) marked entry into the Danish market. This was followed by further Danish expansions in 2024–2025: Roslev Trælasthandel A/S (completed January 2025), CF Petersen & Søn A/S (April 2025), and Tømmergaarden A/S (May 2025), which collectively increased Kesko's Danish to around 20% and supported operations across nine countries. In car trade, Kesko acquired Autotalo Oy in September 2024, adding dealerships for , , and in southern to strengthen its domestic network. These deals aligned with Kesko's strategy to broaden its multi-country footprint in high-growth areas.

Corporate Restructuring

Retail Chain Closures

In , Kesko announced the discontinuation of its operations at 64 Neste K fuel-convenience service stations by the end of the year, marking a significant rationalization effort in its grocery trade division. This decision was prompted by the declining role of grocery sales at these sites, exacerbated by 2016 regulatory changes to store opening hours in that diminished their convenience factor and reduced synergies with Kesko's broader grocery chain network. The stations, which generated approximately €56 million in net sales for Kesko's grocery trade in 2023, will continue to function as fuel and convenience outlets under 's sole operation, allowing Kesko to redirect resources toward its core grocery formats such as K-Citymarket, K-Supermarket, and K-Market. As a result, the total number of K Group grocery stores decreased by 80 during , with the Neste K withdrawals contributing substantially to this reduction. The discontinuation had notable operational and human resource implications. Retailers operating the grocery sections at these Neste K sites were offered opportunities to transition into 's network or join Kesko's retailer ecosystem for traditional grocery stores, facilitating smoother employee relocations and minimizing disruptions. Financially, the process incurred costs recorded as items affecting comparability, totaling €-14.1 million in the third quarter of 2024 alone, primarily related to the chain's wind-down. This move supported Kesko's strategic emphasis on high-performing store sites and grocery services, where online sales grew by 13.5% to €294 million in 2024, representing 3.7% of total K Group grocery sales. Earlier in the , Kesko pursued similar rationalization to optimize its network amid competitive pressures and post-acquisition integration. Following the acquisition of Suomen Lähikauppa, which added over 500 stores to Kesko's portfolio, the company closed 42 underperforming Siwa and Valintatalo outlets by May 2017 to eliminate redundancies and focus on viable locations. These closures were part of a broader network overhaul, including the conversion and transfer of approximately 380 stores to independent K-retailers between and 2018, which streamlined operations and enhanced profitability in the grocery division. The efforts incurred restructuring costs of €21.4 million in 2017 and €7.6 million in 2018 for site adjustments and chain redesigns. By prioritizing stronger formats and digital channels, these actions contributed to Kesko's grocery reaching 36.0% by 2018, while supporting a gradual pivot toward growth in subsequent years.

Divestitures and Sales

In June 2017, Kesko Corporation completed the sale of Indoor Group Oy, which operated the Asko and Sotka furniture chains, to a comprising Sievi Capital Oyj, Etera Mutual Pension Insurance Company, and three Sotka entrepreneurs. The debt-free transaction price was €67 million, structured as a share deal, resulting in a €15 million profit for Kesko. This divestiture marked Kesko's exit from the furniture sector, allowing the company to redirect resources toward its core grocery and building and technical trade operations in and select Northern European markets. Earlier that year, in June 2017, Kesko also divested its K-maatalous agricultural retail business to Lantmännen ek för. The debt-free sale price was €38.5 million, covering 78 stores with annual net sales of €334 million and an operating profit of €5.3 million in 2016. Together, these 2017 transactions generated over €100 million in proceeds, which Kesko reinvested in expanding its high-growth divisions. During the 2020s, Kesko continued refining its portfolio through targeted exits from non-core activities. In 2017, it sold a 45% stake in Konekesko's machinery trade subsidiaries to Danish Agro Group's DAVA Agravis Machinery Holding A/S for €21 million, followed by the full divestiture of the remaining shares and Konekesko's agricultural machinery operations between 2018 and 2020. In March 2023, Kesko sold its truck and bus business in to Adampolis Finland Oy, further streamlining its car trade segment. These divestitures aligned with Kesko's broader strategy to concentrate on profitable, scalable segments like grocery retailing and building and trade across , including the Baltic countries, , and , while shedding lower-priority assets to enhance overall efficiency and fund organic growth.

Financial Performance

Historical Overview

Kesko was founded in through the merger of four regional wholesaling companies, with operations commencing in 1941 amid wartime challenges. The company achieved profitability in its inaugural year of operations, marking the first of consistent profits—interrupted only once in 1967—throughout its history. Early growth was driven by post-war recovery and expansion in the foodstuffs trade, with combined sales at founding totaling FIM 1.25 billion. By the late , sales had expanded significantly, reflecting Kesko's growing role in Finland's grocery sector during a period of economic stabilization. The 1950s and 1960s saw steady revenue growth fueled by diversification into hardware, agricultural supplies, and industrial operations, alongside the lifting of wartime rationing. This period laid the foundation for Kesko's network expansion. Entering the , a grocery boom propelled further development, including the introduction of and the launch of the Citymarket chain in , which correlated with accelerated sales in consumer goods. These expansion phases supported long-term revenue trends, with net sales reaching FIM 26.4 billion by 1995 amid broader gains in retailing. From the 1990s onward, Kesko navigated economic recessions and recoveries, with net sales in EUR terms fluctuating initially—EUR 4.58 billion in 1994, dipping to EUR 4.48 billion in 1995, then rising to EUR 5.99 billion by 1998—before steady growth resumed. Post-1990s, revenue exhibited a of approximately 3.5%, driven by development and international ventures in the and . By 2019, net sales had reached EUR 10.72 billion, underscoring sustained scaling in grocery, building, and technical trades. Operating profit milestones included EUR 130 million in 1998 and a comparable EUR 462 million in 2019, reflecting improved efficiency and market positioning.

Recent Results and Outlook

In 2023, Kesko reported net sales of €11,783.8 million, remaining flat compared to the previous year, while comparable operating profit stood at €712.0 million, reflecting a decrease from €815.1 million in 2022 due to market pressures in building and technical trade. In 2024, net sales increased to €11,920.1 million (+1.2% reported from 2023), while comparable operating profit decreased to €650.1 million (-8.7% from 2023), impacted by declines in building and technical trade profitability despite sales growth in most divisions. By the third quarter of 2025 (July-September), the company demonstrated improved performance, with group net sales rising 6.6% to €3,227.3 million from €3,026.6 million in the prior year's corresponding period, and comparable operating profit increasing to €208.1 million, yielding an of 6.4%. Division-specific results in Q3 2025 highlighted balanced growth. The grocery division achieved net sales of €1,645 million and an operating profit of €117.5 million, with an EBIT margin of 7.2%; on a rolling 12-month basis through 2025, the grocery EBIT margin was 6.6%, supported by steady gains and pricing strategies. In the building and technical division, net sales grew to €1,233.6 million, with operating profit at €71.7 million and an EBIT margin of 5.8%, marking a recovery from the 2024 slowdown in activity, though the turnaround has been slower than anticipated. Looking ahead, Kesko has updated its guidance for 2025, estimating comparable operating profit in the range of €640–690 million, based on year-to-date results and moderated expectations for building and technical trade recovery. For 2026, the company anticipates improvements across all divisions amid an expected economic upturn, with the grocery trade's comparable projected to remain clearly above 6%, building and technical trade profitability to rise moderately in all markets, and car trade net sales and profit to increase despite subdued new vehicle demand.

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