Finnish retailer Kesko has booked a drop in first-quarter group profits as earnings in its food retail division slid.
For the three months to the end of March, group net profit fell 27.1% to EUR26.3m (US$34.8m), the company reported today (26 April).
Go deeper with GlobalData
Operating profit excluding non-recurring items was EUR23.6m, a drop of 26.3% on last year. The figure was negatively impacted by the expansion of the store site network and the expansion of Russian operations, and exceptional write-offs of around EUR8m.
However, net sales amounted to EUR2.32bn, a 10.2% increase on the prior-year period.
In the firm’s food retail division, operating profits dropped 15.7% to EUR34.9m, impacted by costs related to launching business operations in Russia and the expansion of the store site network.
See Also:
Sales in the division, however, climbed 6.5% to EUR1.01m.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataIn Finland, net sales increased by 9.1% and in “other” countries by 16.5%. International operations accounted for 15.4% of net sales.
Click here to view the full earnings release.
