Expansion into Russia and store openings hit Finland-based retailer Kesko‘s food profit in the first nine months of the year.
Operating profit excluding non-recurring items from its food arm were down 7.6% to EUR123.4m (US$160.5m) in the January to September period. Net sales increased 3.4% to EUR3.18bn.
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The retailer said costs linked to the expansion of its store site network and launching business operations in Russia put pressure on profit. Kesko plans to open four grocery stores in Russia in the next two years.
Kesko’s group operating profit fell 21.5%, although sales climbed 3.6% to EUR7.23bn.
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