Kesko reports record best Q2 results despite coronavirus effects

Kesko Group, one of Finland's largest retailers, achieved its record best second-quarter results, despite the exceptional circumstances caused by the COVID-19 epidemic, announced the group in its half-year financial report published on Thursday, reported Xinhua.

Earlier in April, the group recorded its all-time best results in the first quarter this year, when grocery sales grew increasingly amid the epidemic. Kesko's earnings continued to improve in the second quarter when it gained another record best results.

Kesko's net sales between April and June this year totaled 2,814.5 million euros, increasing by 2.2 percent in comparable terms, compared to 2,781.4 million euros in the same period of 2019.

The operating profits was 155.2 million euros in the second quarter of this year, compared to 122.5 million euros the same quarter last year, rising by nearly 27 percent.

Consumer demand for food remains good despite negative effects of the COVID-19 epidemic, retail sales of food grew by 12.3 percent between April and June from last year.

Furthermore, in the building and technical trade, consumer sales have developed better than anticipated during the epidemic, said Kesko.

"Our fast response, well-functioning strategy and good market for the building and technical trade enabled a good result under exceptional circumstances," said Mikko Helander, president and CEO of Kesko, in the financial report.

In the car trade division, however, the net sales decreased clearly, as demand for new cars weakened significantly during the reporting period, while sales of servicing and spare part services remained good.

"Although conditions surrounding the COVID-19 have improved in Kesko's operating countries, it is still difficult to predict the development of the epidemic situation and its economic impact," noted Helander.

A couple of weeks ago, Kesko raised its outlook for the whole year of 2020. The group forecasted that the comparable operating profit for continuing operations will be in the range of 430-510 million euros in 2020. Previously, Kesko estimated that the comparable operating profit for continuing operations would be in the range of 400-450 million euros.