FINLAND: Kesko FY food profits slide
- Net profit down 23.7%
- Operating profit drops 22.7%
- Net sales up 2.4%
Kesko said it expects net sales for 2013 to match the level of the previous year
Expansion into Russia and store openings hit profits from Finland-based retailer Kesko's food stores last year.
Operating profit from Kesko's food business dropped 3.8% to EUR168.4m (US$228m) in 2012, the company reported today (5 February). Grocery sales at its K-food stores, however, increased by 3.9%, while sales of its private-label Pirkka products grew by 11.8%. Net sales amounted to EUR4.31bn, a 3.1% increase on last year.
Group pre-tax profit slid 23.7% to EUR215.2m, while operating profit dropped 22.7% to EUR216.7m. Net sales, however, were up 2.4% to EUR9.69bn.
Kesko said it expects net sales for 2013 to match the level of the previous year.
KESKO CORPORATION STOCK EXCHANGE RELEASE 05.02.2013 AT 09.00 1(32)
Financial performance in brief:
*The Group's net sales for January-December increased by 2.4%.
* The retail and B2B sales (excl. VAT) of the K-Group (i.e. Kesko and chain stores) for January-December increased by 2.9%
*The operating profit excluding non-recurring items was €234.7 million (€278.9 million).
*The Board proposes a dividend of €1.20 per share.
*The future outlook has been changed. The Kesko Group's net sales for 2013 are expected to match the level of the previous year. As a result of measures taken to enhance business operations and cost savings, the operating profit excluding non-recurring items for 2013 is expected to exceed the operating profit excluding non-recurring items for 2012, unless the overall consumer demand significantly weakens. The capital expenditure for 2013 is expected to be lower compared to the capital expenditure for the previous year.
Original source: Kesko
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