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One of Finland's retail groups, Kesko, announced a 3.5-percent increase in profits in the third quarter, compared to the same period last year. The company said that its comparable operating profit reached just over 208 million euros in Q3, while it pulled in around 202 million euros during the same period in 2024. The firm reported positive growth across all of its divisions. The group's net sales amounted to 3.2 billion euros, which also reflected growth over Q3 of last year (€3.02bn). At the same time, the company slightly lowered its profit outlook for this year. Now it estimates that its comparable operating profit in 2025 will range between 640 and 690 million euros. It previously estimated that profits could reach up to 700 million euros. According to Kesko, the outlook downgrade was due to slower-than-expected improvement in the construction sector during the third quarter. in Kesko's interim report, CEO Jorma Rauhala said that "positive development was seen in all three divisions even though the market remained relatively challenging". More customers, purchases "In the grocery trade division, net sales totalled 1.645 billion euros and comparable operating profit [was] 118 million euros. K Group grocery sales increased by 3.6 percent. Strong demand continued in online grocery, and sales there grew by 9.9 percent. Sales for the foodservice business decreased by 0.2 percent - sales development was close to market pace. Price inflation for groceries stood at 2.7 percent," Rauhala's statement read. "Customer flows have grown thanks to campaigns, but basic everyday purchases are also up. Although the grocery trade market remains price driven, we see signs of demand growing for higher quality products and services," his statement said. Meanwhile, the CEO explained that Kesko's building and technical trade division saw a net sales increase that totalled 1.23 billion euros, with profits of 72 million euros — an increase of 1.6 million euros over Q3 of 2024. "Net sales grew in building and home improvement trade underpinned by acquisitions, while decreasing in comparable terms. Sales have picked up in Denmark, Poland and the Baltic countries in particular. Net sales for technical trade increased, but sales margin weakened despite the increase in sales due to price competition, which continued tight in a challenging market. The gradual recovery in the construction cycle has continued, but new housing construction in particular was weaker than anticipated also in the third quarter," Rauhala said.
