“Sales grew in all Kesko divisions in November. The grocery trade division saw a 6.2% increase in sales, with Kespro exhibiting particularly robust sales growth during this period. As a result of the strong performance in B2B trade, sales for the building and technical trade division increased by 4.6% in terms comparable to the prior year. According to Mikko Helander, President and Chief Executive Officer of Kesko, “sales were up by 7.0% in the car trade division.”
The grocery trade division’s total sales in November came to €536.6 million, representing a 6.2% increase from the previous month. The K Group’s grocery stores saw an increase of 3.4% in their sales of groceries year on year. K-sales Citymarket’s of home and specialty goods (items that are not classified as food) increased. The increase in Kespro’s sales was 16.2%.
In November, sales in the division responsible for building and technical trade came to a total of €424.1 million, representing an increase of 4.6% in comparable terms in local currencies. When specialty goods trade is taken out of the equation, the division’s sales increased by 4.6% in comparable terms. While sales increased by 0.6% in Sweden, they went up by 5.4% in Finland and 2.8% in Norway, respectively, during the same time period. 3.5% more money was made in the leisure trade thanks to an increase in sales of specialised goods. The building and technical trade division experienced a 3.9% rise in the amount of reported sales.
The automobile trade saw a rise of 7.0% in sales during the month of November, reaching a total of €76.6 million. When compared to the previous year, the number of new van registrations increased by 4.1% while new passenger car registrations decreased by 4.3%. The annual percentage drop in the number of used cars that were sold in Finland was 9.7%.
The Kesko Group reported a total sales volume of 1,034.8 million euros for the month of November, which represents a year-over-year increase of 5.5%.
Kesko Group’s sales in euros, excluding VAT, in November 2022:
|€ million||Change, %||change, %|
|Grocery trade, total||536.6||+6.2||+6.2|
|Building and technical trade, Finland||224.0||+4.8||+4.8|
|Building and technical trade, other countries||200.1||+2.9||+4.3|
|Building and technical trade, total||424.1||+3.9||+4.6|
|Car trade, total||76.6||+7.0||+7.0|
|Common functions and eliminations||-2.5|
|Other countries, total||200.1||+2.9||+4.3|
Kesko Group’s sales in euros, excluding VAT, in January-November 2022:
|€ million||Change, %||change, %|
|Grocery trade, total||5,609.5||+4.1||+4.1|
|Building and technical trade, Finland||2,505.4||+10.6||+11.3|
|Building and technical trade, other countries||2,144.3||+10.1||+8.8|
|Building and technical trade, total||4,649.7||+10.4||+10.1|
|Car trade, total||839.7||-13.2||-13.2|
|Common functions and eliminations||-28.4|
|Other countries, total||2,144.3||+10.1||+8.8|
The percentage change shows how much of a shift there was when compared to the same time period in the previous year. The comparable change percentage was computed using the local currency and did not take into account the impact of any acquisitions or divestments that were finalised in the years 2021 or 2022.
According to the dates of completion, the acquisitions and divestments that were finalised in 2021 and 2022 have been accounted for in the sales figures reported by Kesko Group. In 2021, the building and technical trade division successfully completed the acquisition of Byggarnas Partner and ceased operations of the Kookenka shoe store chain. Both of these events took place simultaneously. In the year 2022, Kesko was successful in completing the acquisition of the Swedish companies Kungalvs Travaruaktiebolaget in March, Follinge Sg AB and Djurbergs Jarnhandel Aktiebolaget in September, and XL-BYGG Bergslagen AB in October. Additionally, in June of that year, Kesko was successful in acquiring the Norwegian company Seljord Elektriske AS.
In the grocery trade conducted by Kesko as well as the building and technical trade in Finland, Sweden, and Norway, the number of delivery days in November 2022 was equivalent to the number of delivery days in November 2021. The number of delivery days increased by one month compared to the same period in the previous year in Kesko’s grocery trade as well as in the building and technical trade in Finland and Norway, while it remained the same in Sweden. In the grocery trade, wholesale deliveries take place on Saturdays, but not in the construction or technical supply industries. Under typical conditions, one delivery day has an impact of approximately 2%–4% on Kesko’s wholesale, with the exact percentage varying from division to division. When it comes to the automobile industry, the number of delivery days or their timing does not have the same effect on sales.
Statistics on the automobile trade market compiled by the Finnish Information Centre of the Automobile Industry.
In conjunction with the publication of interim reports on a quarterly basis, Kesko provides a sneak peek into the quarterly retail sales of K Group stores.
Further information is available from Hanna Jaakkola, Vice President, Investor Relations, tel. +358 105 323 540, and Eva Kaukinen, Vice President, Group Controller, tel. +358 105 322 338.
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