Kesko will soon launch its new strategy – and improved its profit during the first three months of 2015.
”The divestment of Anttila will significantly improve Kesko’s profitability,” ,” says President and CEO Mikko Helander.
The Kesko Group’s net sales for January-March was 2,082 million EUR, a decline with -2.2 percent. But with Anttila excluded, net sales had a growth of 0.7 percent in local currencies.
The operating profit was 26.5 million EUR (19.1 million).
”Kesko improved its profit for the first quarter of the year, although the operating environment continued to be difficult. Profitability improved markedly in the home improvement and speciality goods trade. Likewise in the grocery trade, profitability remained at a good level,” comments President and CEO Mikko Helander.
He says the divestment of Anttila will significantly improve Kesko’s profitability, but it did not yet have a material impact on the profit for the first quarter.
In Kesko’s grocery trade, the key objective is to stop the decline of market share and turn the trend upward in Finland.
”The first signs of a turnaround were already seen in February-March in both customer flows and sales. The partnership agreement with the world’s leading coffee house chain, Starbucks, announced in April is a good example of the different ways in which K-food stores can deliver the most exciting experiences in the market.”, according to Mikko Helander.
”Kesko’s strategy work is underway. It has been prepared since the beginning of the year by some 40 people and the whole personnel has been invited to express their ideas through different channels. Kesko will be a more focused and unified group in the future.”
But totally, Kesko Group’s net sales for the next 12 months are expected to be lower than the level of the preceding 12 months.
”The strategy will guide Kesko’s future direction for several years to come and it will play a key role in the continuation of Kesko’s 75-year-long success story.” says Mikko Helander.