FINLAND: Industry strikes help Kesko grocery profits
Kesko grocery sales and earnings were up during H1
Finnish retailer Kesko saw profits from its grocery business jump almost 40% during the second quarter of 2010 as the food industry cancelled some campaign plans amid this spring's industry strikes.
Kesko booked a 39.9% increase in second-quarter operating profit, excluding non-recurring items, to EUR42.1m (US$54.5m).
The retailer said the boost in profits came from sales growth and cost cuts but the company also cited the impact of the strikes that hit the Finnish food industry.
"In addition to retail sales growth and cost savings, the improved profit is partly attributable to the lower-than-usual campaign volume as the food manufacturing industry cancelled some of the agreed campaigns during the strikes in the spring," Kesko said.
Net sales from Kesko's grocery retail business inched up 0.2% to EUR976m. Grocery sales from its K-food stores increased by 2.6%.
Over the first half of the year, Kesko's grocery business saw operating profit, excluding non-recurring items, increase 15.3% to EUR73.3m. Net sales climbed 1.4% to EUR1.89bn.
First-half grocery sales from K-food sales were up 3.3%.
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