Kesko Oyj

Q2 net sales were EUR 3.4 billion, up by EUR 190 million year over year. Comparable operating profit was EUR 194 million and operating margin was 5.7%; rolling 12-month net sales were nearly EUR 12.9 billion and rolling 12-month operating profit was EUR 678.7 million, with a 5.3% margin. Return on capital employed was 10.4%, cash flow from operating activities was EUR 362 million, capital expenditure was EUR 127.4 million, and net debt to EBITDA improved to 1.7 from 1.9. By division, grocery comparable operating profit was EUR 110.6 million, building and technical trade was EUR 71.2 million, and car trade was EUR 18.4 million. For 2026, Kesko now expects comparable operating profit of EUR 670 million to EUR 730 million, narrowed from EUR 650 million to EUR 750 million; the operating environment, net sales and comparable operating profit are still expected to improve in all divisions and operating countries.

Jorma Rauhala framed the quarter as a clear profit improvement quarter, repeatedly saying the key driver was technical trade. He emphasized that grocery is still in good shape despite price investments, that car trade should strengthen in the back half due to a stronger order book, and that the Dahl acquisition is a major strategic fit for Kesko's Nordic technical trade ambitions. His tone was confident but cautious on guidance, stressing that the company wants to be careful and that any upside in H2 could come mainly from building and technical trade.

Anu Hamalainen was not quoted directly in the prepared remarks, but the financial commentary covered strong cash generation and a better balance sheet profile. Management highlighted EUR 362 million in operating cash flow, EUR 127.4 million in capex, and net debt to EBITDA of 1.7, down from 1.9 and well below the 2.5 target. They also noted expenses rose mainly because of acquisitions, with nearly half of the increase from the Danish acquisitions, yet the cost ratio improved to 16.9%.

Analysts pressed on grocery margins, the Dahl acquisition, and why guidance was not narrowed more positively. Management said grocery margins were in line with expectations and benefited from efficient use of data, strong customer focus, and retail media, while declining to comment on a 2026 Dahl earnings figure. On car trade, management said the 40% stronger new-car order book gives them confidence that H2 will be much stronger, and on the unchanged outlook they said they are being deliberately careful, though building and technical trade could still surprise positively.