Finnish retailer Kesko has booked an increase in profit despite weaker sales, as the group benefited from cost cutting.
Kesko said net profit was EUR185m (US$249.8m) in 2013, compared to EUR136m in 2012. Adjusted earnings per share rose to EUR1.68 from EUR1.47. Operating profit rose to EUR238.8m, up from EUR230m in 2012. Gains were driven by “the implementation of enhancement measures”, Kesko said.
The company reported higher profits in the face of a 4% drop in revenue. Sales in the 12-month period were down 3.8% to EUR9.32bn.
In its food division, Kesko said sales were up 1.4% and operating profit was up 3.5%.
Looking to the coming 12 months, the company forecast flat sales and earnings “unless consumer demand weakens significantly”.