2014-04-24 08:00:00 CEST
2014-04-24 08:02:00 CEST
REGULATED INFORMATION
Kesko Oyj - Interim report (Q1 and Q3)
Kesko's interim report for the period of 1 Jan. to 31 Mar. 2014: Operating profit excl. non-recurring items improved and was €19.1 million
KESKO CORPORATION INTERIM REPORT 24.04.2014 AT 09.00 1(28)
Kesko's interim report for the period of 1 Jan. to 31 Mar. 2014: Operating
profit excl. non-recurring items improved and was €19.1 million
Financial performance in brief:
*The Group's net sales for January-March €2,129 million, change -1.4%.
*Operating profit excluding non-recurring items increased to €19.1 million
(€18.6 million) due to the enhancement measures implemented.
*Earnings per share excluding non-recurring items €0.15 (€0.11).
*Equity ratio 53.2% (51.7%).
*Kesko Group's net sales and operating profit excluding non-recurring items for
the next 12 months are expected to remain at the level of the preceding 12
months, unless the overall consumer demand weakens significantly.
Key performance indicators
1-3/2014 1-3/2013
Net sales, € million 2,129 2,159
Operating profit excl. non-
recurring items, € million 19.1 18.6
Operating profit, € million -13.0 19.2
Profit before tax, € million -14.4 15.8
Capital expenditure, € million 43.4 41.5
Earnings per share, diluted, € -0.11 0.11
Earnings per share excl.
non-recurring items, basic, € 0.15 0.11
31.3.2014 31.3.2013
Equity ratio, % 53.2 51.7
Equity per share, € 22.83 22.62
FINANCIAL PERFORMANCE
Net sales and profit for January-March 2014
The Group's net sales for January-March 2014 were €2,129 million, which is 1.4%
down on the corresponding period of the previous year (€2,159 million). Net
sales increased in the building and home improvement trade and in the car and
machinery trade and declined in the home and speciality goods trade and in the
food trade. In Finland, the weakening of the general economic situation and
consumer demand contributed to the development. In Finland, net sales decreased
by 3.3% and in other countries net sales increased by 9.3%. International
operations accounted for 16.3% (14.7%) of the net sales. Net sales in foreign
currencies increased clearly in foreign operations, but the weakening of the
exchange rates of the Russian rouble, the Norwegian krone and the Swedish krona
with respect to the euro had an impact on the development in euros.
1-3/2014 Net sales, € Change, % Operating profit Change, €
million excl. non- million
recurring
items, € million
Food trade 1,007 -3.7 46.5 -1.7
Home and speciality 312 -9.5 -22.7 -4.9
goods trade
Building and home 581 +3.5 -10.4 +6.2
improvement trade
Car and machinery
trade 272 +9.2 8.2 +0.5
Common operations
and eliminations -44 +4.6 -2.5 +0.5
Total 2,129 -1.4 19.1 +0.5
The operating profit excluding non-recurring items for January-March was €19.1
million (€18.6 million). Profitability was improved by the increase of sales in
the building and home improvement trade and the car and machinery trade as well
as the enhancement measures implemented in all operations. Operating expenses
excluding non-recurring items decreased by 1.3% despite the expansion of the
store site network and cost inflation.
Operating profit was €-13.0 million (€19.2 million). The operating profit
includes €-32.2 million (€0.6 million) of non-recurring items. The non-recurring
items include a restructuring provision of €30.0 million for measures to be
taken to improve Anttila's profitability.
The Group's profit before tax for January-March was €-14.4 million (€15.8
million).
The Group's earnings per share excluding non-recurring items were €0.15 (€0.11).
The Group's earnings per share were €-0.11 (€0.11). The Group's equity per share
was €22.83 (€22.62).
In January-March, the K-Group's (i.e. Kesko's and the chain stores') retail and
B2B sales (VAT 0%) were €2,555 million, down 0.7% compared to the previous year.
The K-Plussa customer loyalty programme gained 14,874 new households in January-
March. At the end of March, there was 2,257,144 K-Plussa households and 3.9
(3.8) million K-Plussa cardholders.
Finance
In January-March, the cash flow from operating activities was €-94.8 million (€-
58.7 million). The cash flow from investing activities was €-43.7 million (€-
41.9 million) including a €1.9 million (€2.5 million) amount of proceeds from
the sale of fixed assets.
The Group's liquidity remained at an excellent level in January-March. At the
end of the period, liquid assets totalled €532 million (€411 million). Interest-
bearing liabilities were €557 million (€644 million) and interest-bearing net
debt €25 million (€233 million) at the end of March. Equity ratio was 53.2%
(51.7%) at the end of the period.
In January-March, the Group's net finance costs were €1.6 million (€3.3
million). Net finance costs decreased due to gains on rouble currency hedging.
Taxes
In January-March, the Group's taxes were positive by €2.5 million (€-4.8
million) due to deferred tax receivables from non-recurring expenses.
Capital expenditure
In January-March, the Group's capital expenditure totalled €43.4 million (€41.5
million), or 2.0% (1.9%) of net sales. Capital expenditure in store sites was
€27.8 million (€31.6 million), in IT €10.8 million (€5.6 million) and other
capital expenditure was €4.8 million (€4.2 million). Capital expenditure in
foreign operations represented 37.2% (36.5%) of total capital expenditure.
Kesko's strategic focus areas and profitability programme
The key focus areas in Kesko's business operations are to strengthen sales
growth and the return on capital in all divisions, to exploit business
opportunities in e-commerce and in Russia, and to maintain good solvency and
dividend payment capacity.
Profitability programme
Because of the further weakened economic situation and consumer demand, Kesko
continues to implement the profitability programme with the key objective of
improving the Group's cost-effectiveness. Cost savings will be implemented in
all divisions and all cost groups. The most significant measures will be
targeted at the operations with low profitability.
Improving Anttila's profitability
In order to improve Anttila's profitability, a decision was made during the
reporting period to close eight Anttila department stores operating in rented
premises. The department stores to be closed have a total of some 210 employees.
In addition, 25 full-time employees will be reduced in other Anttila department
stores. In addition, employee co-operation negotiations were started in the
Kodin1 chain and in the centralised operations of Anttila Oy and K-citymarket Oy
during the reporting period. In the Kodin1 department store chain, four Kodin1
department stores are planned to be closed within the next two years. The
negotiations will concern a total of some 1,350 persons, and the estimated need
for reduction is at most 220 full-time employees. In addition to the
profitability driven renewal of Anttila's business, the option of selling
Anttila Oy is also being investigated.
Kesko looks into setting up a real estate fund
Kesko is looking into selling some of its store sites to a fund to be set up
with Kesko as one of its major investors. Kesko Group would continue its
operations in the store sites under long-term leases signed in connection with
their sales to the fund.
Kesko's objective is to set up a fund of mainly Kesko-owned store sites and
shopping centres in Finland, Sweden and Russia with a maximum fair value of
approximately €750 - 950 million.
Launching the real estate investment fund depends, in addition to investor
interest, on whether it is possible for Kesko to achieve such terms and
conditions in the arrangement that are commercially viable for it, taking the
Group's strong financial position into account. Moreover, starting a real estate
investment fund is subject to the authorisation of the Financial Supervisory
Authority.
The possible fund is expected to be launched in the course of 2014.
Personnel
In January-March, the average number of employees in Kesko Group was 19,616
(19,126) converted into full-time employees. In Finland, the average decrease
was 185 people, while outside Finland, there was an increase of 676 people.
At the end of March 2014, the number of employees was 23,425 (22,881), of whom
12,152 (12,298) worked in Finland and 11,273 (10,583) outside Finland. Compared
to the end of March 2013, there was a decrease of 146 people in Finland and an
increase of 690 people outside Finland.
In January-March, the Group's staff cost was €156.0 million, showing a 1.7%
increase compared to the previous year.
SEGMENT INFORMATION
Seasonal nature of operations
The Group's operating activities are affected by seasonal fluctuations. The net
sales and operating profits of the reportable segments are not earned evenly
throughout the year. Instead, they vary by quarter depending on the
characteristics of each segment.
Food trade
1-3/2014 1-3/2013
Net sales, € million 1,007 1,045
Operating profit excl. non- recurring items, € million 46.5 48.2
Operating margin excl. non-recurring items, % 4.6 4.6
Capital expenditure, € million 18.0 16.5
Net sales, € million 1-3/2014 Change, %
Sales to K-food stores 751 -6.6
Kespro 182 -3.4
K-ruoka, Russia 25 (..)
Others 50 +10.4
Total 1,007 -3.7
January-March 2014
In the food trade, the net sales for January-March were €1,007 million (€1,045
million), down 3.7%. The net sales development was partly impacted by the fact
that Easter fell in April. The grocery sales of K-food stores in Finland
decreased by 3.5% (VAT 0%) which is estimated to have been below the total
market development. The rise of consumer prices in the grocery trade has slowed.
The sales and profitability of the food stores in Russia were realised better
than expected for the reporting period despite the weakening of the Russian
rouble.
In January-March, the operating profit excluding non-recurring items of the food
trade was €46.5 million (€48.2 million), or €1.7 million down on the previous
year. Profitability was improved by savings achieved from enhanced operations
and adjustment of capital expenditure. Operating profit excluding non-recurring
items was negatively impacted bya €0.3 million loss (€2.3 million gain) on
measurement of derivatives used for hedging electricity purchases. Operating
profit was €45.4 million (€48.2 million). Non-recurring items were €1.1 million
(€0.0 million).
The capital expenditure of the food trade in January-March was €18.0 million
(€16.5 million), of which €16.2 million (€14.6 million) in stores sites.
In January-March, three new K-supermarkets and one new K-market were opened. The
most significant store sites being built are a K-citymarket in the Puuvilla
shopping centre in Pori and K-supermarkets in downtown Helsinki, in Jakomäki,
Helsinki, and in Hanko, Hollola and Lappeenranta.
The objective of Kesko Food is to open three new food stores in the St
Petersburg area in 2014.
Number of stores at 31 March 2014 2013
K-citymarket 80 80
K-supermarket 219 214
K-market (incl. service station stores) 441 448
K-ruoka, Russia 4 1
Others* 172 190
* incl. online food store
Home and speciality goods trade
1-3/2014 1-3/2013
Net sales, € million 312 345
Operating profit excl. non- recurring items, € million -22.7 -17.8
Operating margin excl. non-recurring items, % -7.3 -5.2
Capital expenditure, € million 3.8 8.0
Net sales, € million 1-3/2014 Change, %
K-citymarket home and speciality goods 133 -4.8
Anttila 76 -14.1
Intersport, Finland 45 -10.1
Intersport, Russia 5 -26.9
Indoor 42 -4.8
Musta Pörssi 6 -41.1
Kenkäkesko 6 -4.8
Total 312 -9.5
January-March 2014
In the home and speciality goods trade, the net sales for January-March were
€312 million (€345 million), down 9.5%. Consumer demand in the home and
speciality goods trade has continued to weaken, and the change in customer
behaviour has strengthened during the reporting period. Sales declined
especially in the department store trade. The sales of clothing and sports goods
decreased because of the weak winter season. Net sales performance was also
impacted by the network changes in Musta Pörssi and Intersport Russia.
In January-March, the operating profit excluding non-recurring items of the home
and speciality goods trade was €-22.7 million (€-17.8 million), down €4.9
million compared to the previous year. The development was impacted by the
growing losses caused by the decline in Anttila's sales. The profitability of K-
citymarket home and speciality goods was better than the year before.
Intersport's profitability in Finland remained at a good level despite weaker
sales in winter sports equipment compared to previous year. Operating profit was
€-54.5 million (€-17.7 million). The most significant non-recurring item was a
restructuring provision of €30.0 million for measures to be taken to improve the
profitability of Anttila.
The capital expenditure of the home and speciality goods trade in January-March
was €3.8 million (€8.0 million).
The most significant new store openings in January-March 2014 were Asko and
Sotka in Pirkkala.
Number of stores at 31 March 2014 2013
K-citymarket, home and speciality goods* 81 81
Anttila department stores* 31 31
Kodin1 department stores for interior decoration and home goods* 13 13
Intersport, Finland 63 62
Budget Sport* 11 11
Asko and Sotka 87 84
Musta Pörssi* 6 25
Kookenkä* 46 48
Anttila, Baltics* 3 3
Intersport, Russia 20 21
Asko and Sotka, Baltics* 10 10
* incl. online stores
Building and home improvement trade
1-3/2014 1-3/2013
Net sales, € million 581 562
Operating profit excl. non- recurring items, € million -10.4 -16.6
Operating margin excl. non-recurring items, % -1.8 -3.0
Capital expenditure, € million 12.0 12.5
Net sales, € million 1-3/2014 Change, %
Rautakesko, Finland 289 +2.9
K-rauta, Sweden 38 +0.5
Byggmakker, Norway 100 -1.5
K-rauta, Estonia 14 +16.5
K-rauta, Latvia 10 +4.5
Senukai, Lithuania 58 +21.3
K-rauta, Russia 49 -4.0
OMA, Belarus 24 +14.0
Total 581 +3.5
January-March 2014
In the building and home improvement trade, the net sales for January-March were
€581 million (€562 million), up 3.5%. The net sales growth in the building and
home improvement trade was 8.7% in terms of local currencies. The net sales
increased in all operating countries in terms of local currencies. The good
sales performance was impacted especially by successful sales of building
materials and B2B sales as well as the fact that Easter fell in April.
In Finland, the net sales for January-March were €289 million (€281 million), an
increase of 2.9%. The building and home improvement products contributed €197
million to the net sales in Finland, an increase of 3.2%. The agricultural
supplies trade contributed €92 million to the net sales, up 2.1%.
The retail sales of the K-rauta and Rautia chains in Finland grew by 5.2% to
€179 million (VAT 0%). The sales of Rautakesko B2B Service increased by 7.3%.
The K-Group's sales of building and home improvement products in Finland
increased by a total of 5.6% and the total market (VAT 0%) is estimated to have
grown 1-2% in January-March (Kesko's own estimate). The retail sales of the K-
maatalous chain were €91 million (VAT 0%), down 1.3%.
In January-March, the net sales from foreign operations of the building and home
improvement trade were €292 million (€281 million), an increase of 4.2%. In
terms of local currencies, the net sales from foreign operations increased by
14.5%. In Sweden, net sales in terms of kronas were up by 4.7% and in Norway net
sales were up by 10.7% in terms of krones. In the Baltic countries, net sales
increased by 18.1%. In Russia, net sales in terms of roubles increased by
14.9%. Foreign operations contributed 50.3% (50.0%) to the net sales of the
building and home improvement trade.
In January-March, the operating profit excluding non-recurring items of the
building and home improvement trade was €-10.4 million (€-16.6 million), up €6.2
million compared to the previous year. Due to increase in sales and enhancement
measures, profit performance was clearly positive. Operating profit was €-9.7
million (€-16.1 million).
In January-March, the capital expenditure of the building and home improvement
trade was €12.0 million (€12.5 million), of which 76.2% (49.2%) abroad. Capital
expenditure in store sites represented 75.4% of total capital expenditure.
Number of stores at 31 March 2014 2013
K-rauta* 42 42
Rautia* 98 99
K-maatalous* 83 83
K-rauta, Sweden 20 21
Byggmakker, Norway 86 89
K-rauta, Estonia 8 8
K-rauta, Latvia 8 8
Senukai, Lithuania 18 17
K-rauta, Russia 13 14
OMA, Belarus 10 9
* In 2014, 47 Rautia stores also operated as K-maatalous stores.
In 2013, 1 K-rauta store and 48 Rautia stores also operated as K-maatalous
stores.
Car and machinery trade
1-3/2014 1-3/2013
Net sales, € million 272 249
Operating profit excl. non- recurring items, € million 8.2 7.8
Operating margin excl. non-recurring items, % 3.0 3.1
Capital expenditure, € million 2.9 3.9
Net sales, € million 1-3/2014 Change, %
VV-Auto 214 +11.2
Konekesko 58 +2.0
Total 272 +9.2
January-March 2014
In January-March, the net sales of the car and machinery trade were €272 million
(€249 million), up 9.2%.
VV-Auto's net sales for January-March were €214 million (€193 million), an
increase of 11.2%. In January-March, the combined market performance of first
time registered passenger cars and vans was +10.0%.
In January-March, the combined market share of passenger cars and vans imported
by VV-Auto was 20.9% (19.9%). Volkswagen was the market leader in both passenger
cars and vans.
Konekesko's net sales for January-March were €58 million (€57 million), up 2.0%
compared to the previous year. Net sales in Finland were €36 million, down
6.7%. The net sales from Konekesko's foreign operations were €22 million, up
20.9%.
In January-March, the operating profit excluding non-recurring items of the car
and machinery trade was €8.2 million (€7.8 million), up €0.5 million compared to
the previous year. Due to increase in sales and enhancement measures,
profitability in the car trade remained at a good level.
The operating profit for January-March was €8.2 million (€7.8 million).
The capital expenditure of the car and machinery trade in January-March was €2.9
million (€3.9 million).
Number of stores at 31 March 2014 2013
VV-Auto, retail trade 10 10
Konekesko 1 1
Changes in the Group composition
No significant changes took place in the Group composition during the reporting
period.
Shares, securities market and Board authorisations
At the end of March 2014, the total number of Kesko Corporation shares was
99,917,760, of which 31,737,007, or 31.8%, were A shares and 68,180,753, or
68.2%, were B shares. At 31 March 2014, Kesko Corporation held 1,000,075 own B
shares as treasury shares. These treasury shares accounted for 1.47% of the
number of B shares and 1.00% of the total number of shares, and 0.26% of votes
carried by all shares of the company. The total number of votes carried by all
shares was 385,550,823. Each A share carries ten (10) votes and each B share one
(1) vote. The company cannot vote with own shares held as treasury shares and no
dividend is paid on them. At the end of March 2014, Kesko Corporation's share
capital was €197,282,584. During the reporting period, the number of B shares
was increased once to account for the shares subscribed for with the options
based on the 2007 option scheme. The increase was made on 10 February 2014
(85,067 B shares) and announced in a stock exchange notification on the same
day. The shares subscribed for were listed for public trading on NASDAQ OMX
Helsinki (Helsinki Stock Exchange) with the old B shares on 11 February 2014.
The subscription price of €1,041,220.08 received by the company was recorded in
the reserve of invested non-restricted equity.
The price of a Kesko A share quoted on NASDAQ OMX Helsinki was €26.80 at the end
of 2013, and €31.22 at the end of March 2014, representing an increase of
16.5%. Correspondingly, the price of a B share was €26.80 at the end of 2013,
and €31.67 at the end of March 2014, representing an increase of 18.2%. In
January-March, the highest A share price was €32.31 and the lowest was €26.39.
For B share, they were €33.33 and €26.15 respectively. In January-March, the
Helsinki stock exchange (OMX Helsinki) All-Share index was up 0.2% and the
weighted OMX Helsinki CAP index 0.4%. Correspondingly, the Retail Index was up
12.8%.
At the end of March 2014, the market capitalisation of A shares was €991
million, while that of B shares was €2,128 million, excluding the shares held by
the parent company. The combined market capitalisation of A and B shares was
€3,118 million, an increase of €458 million from the end of 2013. In January-
March 2014, a total of 0.6 (0.3) million A shares were traded on the Helsinki
stock exchange, up 107.3%. The exchange value of A shares was €17 million. The
total number of B shares traded was 14.6 (10.1) million, up 44.4%. The exchange
value of B shares was €441 million. In terms of volumes, the Helsinki stock
exchange accounted for 66% of Kesko A and B share trading in January- March
2014. Kesko shares were also traded on multilateral trading facilities, the most
significant of which were BATS Chi-X with 25% and Turquoise with 9% of the
trades (source: Fidessa).
The company operates the 2007 option scheme for management and other key
personnel, under which the share subscription period of 2007C share options runs
from 1 April 2012 to 30 April 2014. The share options have been included on the
official list of the Helsinki stock exchange since the beginning of the share
subscription periods. A total of 82,958 2007C share options were traded during
the reporting period at a total value of €1,453,866. The share subscription
period of 2007A share options under the option scheme expired and their trading
on the official list ended in 2012. The share subscription period of 2007B share
options under the option scheme expired and their trading on the official list
ended in 2013.
The Board has the authority, granted by the Annual General Meeting of 16 April
2012 and valid until 30 June 2015, to issue a total maximum of 20,000,000 new B
shares. The shares can be issued against payment for subscription by
shareholders in a directed issue in proportion to their existing shareholdings
regardless of whether they consist of A or B shares, or, deviating from the
shareholder's pre-emptive right, in a directed issue, if there is a weighty
financial reason for the company, such as using the shares to develop the
company's capital structure, and financing possible acquisitions, investments or
other arrangements within the scope of the company's business operations. The
amount paid for the shares is recognised in the reserve of invested non-
restricted equity. The authorisation also includes the Board's authority to
decide on the share subscription price, the right to issue shares against non-
cash consideration and the right to make decisions on other matters concerning
share issuances.
In addition, the Board has the authority, granted by the Annual General Meeting
of 8 April 2013 and valid until 30 September 2014, to decide on the acquisition
of a maximum of 500,000 own B shares. Kesko's Board of Directors made the
decision in February 2014 to start acquiring own B shares. The decision to start
acquisition was announced in a stock exchange release on 4 February 2014 and
acquisition was started on 18 February 2014. The maximum amount of own B shares
the Board was authorised to acquire, 500,000, was acquired by 31 March 2014, and
the authorisation is thus fully used. Each acquired batch was announced in a
stock exchange release at the end of the day when the acquisition was made. At
31 March 2014, Kesko Corporation held 1,000,075 own B shares as treasury shares.
In addition, the Board has the authority, valid until 30 June 2017, to decide on
the issuance of the maximum of 1,000,000 own B shares held as treasury shares by
the company.
On 4 February 2014, the Board decided to grant own B shares held by the company
as treasury shares to persons included in the target group of the 2013 vesting
period, based on the authority to issue own shares granted by the Annual General
Meeting held on 8 April 2013, and the fulfilment of the vesting criteria of the
2013 vesting period of Kesko's three-year share-based compensation plan. The
issuance of a total of 50,520 own B shares, referred to above, was announced in
a stock exchange release on 24 March 2014 and on 25 March 2014. During the
reporting period, a total of 1,611 shares granted based on the fulfilment of the
vesting criteria of the 2011 and 2012 vesting periods were returned to the
company in accordance with the terms and conditions of the share-based
compensation plan. The shares returned during the reporting period were
announced in a stock exchange notification on 7 February 2014. Further
information on the Board's authorisations is available at www.kesko.fi.
At the end of March 2014, the number of shareholders was 41,328, which was
1,481 less than at the end of 2013. At the end of March, foreign ownership of
all shares was 26%. At the end of March, foreign ownership of B shares was 38%.
Flagging notifications
Kesko Corporation did not receive flagging notifications during the reporting
period.
Key events during the reporting period
Kestra Kiinteistöpalvelut Oy, a subsidiary of Kesko Corporation, announced that
it will not participate in the future financing of Fennovoima Ltd's Hanhikivi 1
nuclear power project due to the related financial, contractual and schedule
uncertainties. (Stock exchange release on 27 March 2014)
As a result of the employee cooperation negotiations to improve Anttila's
profitability, the decision was made to close eight Anttila department stores
operating in rented premises. The department stores to be closed have a total of
some 210 employees. In addition, 25 full-time employees will be reduced in other
Anttila department stores. Employee co-operation negotiations were also started
in the Kodin1 chain. In the Kodin1 department store chain, four Kodin1
department stores are planned to be closed within the next two years. In
addition, employee cooperation negotiations were started in the centralised
operations of Anttila Oy and K-citymarket Oy. The negotiations will concern a
total of 1,350 persons, and the estimated need for reduction is at most 220
full-time employees. (Stock exchange release on 31 March 2014)
Resolutions of the 2014 Annual General Meeting and decisions of the Board's
organisational meeting
Kesko Corporation's Annual General Meeting, held on 7 April 2014, adopted the
financial statements for 2013 and discharged the Board members and the Managing
Director from liability. The General Meeting also resolved, as proposed by the
Board, to distribute €1.40 per share as dividends, or a total of
€138,484,759.00. The dividend pay date was 17 April 2014. The General Meeting
resolved that the number of Board members be unchanged at seven and elected
PricewaterhouseCoopers Oy as the company's auditor, with APA Johan Kronberg as
the auditor with principal responsibility. The General Meeting also approved the
Board's proposal that it be authorised to decide on donations in a total maximum
of €300,000 for charitable or corresponding purposes until the Annual General
Meeting to be held in 2015.
The organisational meeting of the company's Board of Directors, held after the
Annual General Meeting, kept the compositions of the Audit Committee and the
Remuneration Committee unchanged.
The resolutions of the Annual General Meeting and the decisions of the Board's
organisational meeting were announced in more detail in stock exchange releases
on 7 April 2014.
Responsibility
In January, Kesko was again included on 'The Global 100 Most Sustainable
Corporations in the World' list.
In RobecoSAM's Sustainability Yearbook 2014, published in January, Kesko
received the Silver Class distinction in the Food & Staples Retailing Industry
category.
In March, Kesko and K-stores took part in the global Earth Hour 2014 event by
turning off the illuminated signs in their properties and stores.
In 2013, Kesko and K-stores launched a programme with the objective of employing
at least 1,000 young people in the target group of the Youth Guarantee
initiative by the end of 2014. By the end of February 2014, 718 young people
have been employed in K-stores and Kesko across Finland.
Risk management
Kesko Group has an established and comprehensive risk management process. Risks
and their management responses are regularly assessed within the Group and
reported to the Group management. Kesko's risk management and risks associated
with business operations are described in more detail on Kesko's website in the
Corporate Governance section.
The most significant near-future risks in Kesko's business operations are
associated with the general development of the economic situation and consumer
confidence in Kesko's operating area, as well as their impact on Kesko's sales
and profit performance. Because of the crisis in Ukraine, the country risks of
Russia have increased. It is estimated that in other respects, no material
changes have taken place during the beginning of 2014 in the risks described in
the report by the Board of Directors and financial statements for 2013 and the
risks described on Kesko's website.
The risks and uncertainties related to profit performance are described in the
section future outlook of this release.
Future outlook
Estimates of the future outlook for Kesko Group's net sales and operating profit
excluding non-recurring items are given for the 12 months following the
reporting period (4/2014-3/2015) in comparison with the 12 months preceding the
reporting period (4/2013-3/2014).
Future prospects for the general economic situation and consumer demand continue
to be characterised by significant uncertainty in Kesko's operating area. Due to
the weakened economic situation and decline in consumers' purchasing power,
demand in the trading sector is expected to remain weak in Finland.
Kesko Group's net sales and operating profit excluding non-recurring items for
the next 12 months are expected to remain at the level of the preceding 12
months, unless the overall consumer demand weakens significantly.
Helsinki, 23 April 2014
Kesko Corporation
Board of Directors
The information in the interim report release is unaudited.
Further information is available from Jukka Erlund, Senior Vice President, Chief
Financial Officer, telephone +358 10 53 22113 and Eva Kaukinen, Vice President,
Group Controller, telephone +358 10 53 22338. A Finnish-language webcast from
the media and analyst briefing on the interim report can be accessed at
www.kesko.fi at 11:00. An English-language web conference on the interim report
will be held today at 14:30 (Finnish time). The web conference login is
available at www.kesko.fi.
Kesko Corporation's interim report for January-June will be released on 22 July
2014. In addition, Kesko Group's sales figures are published each month. News
releases and other company information are available on Kesko's website at
www.kesko.fi.
KESKO CORPORATION
Merja Haverinen
Vice President, Group Communications
ATTACHMENTS: TABLES SECTION
Accounting policies
Consolidated statement of comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
Consolidated statement of cash flows
Group's performance indicators
Net sales by segment
Operating profit by segment
Operating profit excl. non-recurring items by segment
Operating margin excl. non-recurring items by segment
Capital employed by segment
Return on capital employed excl. non-recurring items by segment
Capital expenditure by segment
Segment information by quarter
Change in tangible and intangible assets
Related party transactions
Fair value hierarchy of financial assets and liabilities
Personnel average and at the end of the reporting period
Group's commitments
Calculation of performance indicators
K-Group's retail and B2B sales
DISTRIBUTION
NASDAQ OMX Helsinki
Main news media
www.kesko.fi
ATTACHMENTS:
Accounting policies
This interim report has been prepared in accordance with the IAS 34 standard.
The interim report has been prepared in accordance with the same accounting
principles as the annual financial statements for 2013, with the exception of
the following changes due to the adoption of new and revised IFRS standards and
IFRIC interpretations:
-IFRS 10 Consolidated financial statements
-IFRS 11 Joint arrangements
-IFRS 12 Disclosure of interests in other entities
The above amendments to standards and interpretations do not have a material
impact on the reported income statement and statement of financial position. The
amendment will affect notes to the financial statements.
Consolidated income statement (€ million),
condensed
1-3/ 1-3/ 1-12/
2014 2013 Change, % 2013
Net sales 2,129 2,159 -1.4 9,315
Cost of goods sold -1,850 -1,875 -1.4 -8,034
Gross profit 279 284 -1.7 1,281
Other operating income 165 173 -4.8 734
Staff cost -156 -153 1.7 -611
Depreciation and impairment charges -39 -37 5.4 -153
Other operating expenses -262 -248 5.8 -1,003
Operating profit -13 19 (..) 248
Interest income and other finance income 2 3 -39.3 20
Interest expense and other finance costs -4 -5 -18.2 -20
Exchange differences 1 -2 (..) -6
Income from associates 0 0 (..) 0
Profit before tax -14 16 (..) 242
Income tax 3 -5 (..) -58
Net profit for the period -12 11 (..) 185
Attributable to
Owners of the parent -11 11 (..) 173
Non-controlling
interests -1 0 (..) 12
Earnings per share (€)
for profit attributable to
equity holders of the parent
Basic -0.11 0.11 (..) 1.75
Diluted -0.11 0.11 (..) 1.75
Consolidated statement
of comprehensive income (€ million)
1-3/ 1-3/ 1-12/
2014 2013 Change, % 2013
Net profit for the period -12 11 (..) 185
Items that will not be reclassified
subsequently to profit or loss
Actuarial gains/losses 8 - (..) 12
Items that may be reclassified subsequently
to profit or loss
Exchange differences on translating foreign
operations -6 3 (..) -14
Adjustment for hyperinflation 2 2 -9.5 3
Cash flow hedge revaluation -2 0 (..) -4
Revaluation of available-for-sale financial
assets 1 0 (..) -5
Other items - - - 0
Total other comprehensive income for the
period, net of tax 3 4 -41.8 -8
Total comprehensive income for the period -9 15 (..) 177
Attributable to
Owners of the parent -9 14 (..) 166
Non-controlling
interests -1 1 (..) 11
(..) Change over 100%
Consolidated statement of financial
position (€ million), condensed
31.3.2014 31.3.2013 Change, % 31.12.2013
ASSETS
Non-current assets
Tangible assets 1,645 1,685 -2.4 1,651
Intangible assets 194 190 2.2 189
Investments in associates and other
financial assets 105 106 -0.6 104
Loans and receivables 16 90 -82.6 15
Pension assets 181 154 17.4 170
Total 2,141 2,225 -3.8 2,131
Current assets
Inventories 840 859 -2.2 797
Trade receivables 720 805 -10.5 617
Other receivables 195 198 -1.5 136
Financial assets at fair value
through profit or loss 183 98 86.5 171
Available-for-sale financial assets 263 218 20.9 398
Cash and cash equivalents 86 95 -9.8 112
Total 2,287 2,273 0.6 2,231
Non-current assets held for sale 1 2 -74.3 1
Total assets 4,429 4,500 -1.6 4,362
31.3.2014 31.3.2013 Change, % 31.12.2013
EQUITY AND LIABILITIES
Equity 2,259 2,221 1.7 2,279
Non-controlling interests 72 68 6.7 73
Total equity 2,331 2,289 1.8 2,352
Non-current liabilities
Interest-bearing liabilities 351 438 -19.8 355
Non-interest-bearing liabilities 10 10 -5.2 10
Deferred tax liabilities 68 78 -12.5 68
Pension obligations 2 2 10.0 2
Provisions 28 20 42.7 17
Total 459 547 -16.1 452
Current liabilities
Interest-bearing liabilities 206 206 -0.1 199
Trade payables 940 951 -1.1 825
Other non-interest-bearing liabilities 446 467 -4.3 494
Provisions 46 41 13.8 38
Total 1,639 1,664 -1.5 1,557
Total equity and liabilities 4,429 4,500 -1.6 4,362
Consolidated statement of changes in equity (€ million)
Share Res- Cur- Re- Trea- Re- Non- Total
capi- erves rency valu- sury tained cont-
tal trans- ation sha-res earn- rol-
lation reser-ve ings ling
differ- inte-
ences rests
Balance at
1.1.2013 197 442 -2 10 -19 1,578 67 2,272
Shares
subscribed
with options 1 1
Treasury shares
Share-based
payments 0 0 0
Other
changes 0 0
Net profit for
the period 11 0 11
Other comprehen-
sive income
Items that will
not be
reclassified
subsequently to
profit or loss
Actuarial
gains/losses
Items that may be
reclassified
subsequently to
profit or loss
Exchange
differences
on translating
foreign
operations 0 3 0 3
Adjustment for
hyperinflation 0 2 2
Cash flow
hedge
revaluation 0 0
Revaluation of
available- for-
sale financial
assets 0 0
Tax relating to
other comprehen-
sive income 0 0
Total other
comprehen-sive
income 0 3 0 0 2 4
Balance at
31.3.2013 197 443 1 10 -19 1,590 68 2,289
Balance at
1.1.2014 197 461 -13 1 -18 1,651 73 2,352
Shares
subscribed
with options 1 1
Treasury shares -15 -15
Share-
based payments 2 2
Other changes 0 0 0 0
Net profit for
the period -11 -1 -12
Other comprehen-
sive income
Items that will
not be
reclassified
subsequently to
profit or loss
Actuarial
gains/losses 10 10
Items that may be
reclassified
subsequently to
profit or loss
Exchange
differences
on translating
foreign
operations 0 -5 0 -1 -6
Adjustment for
hyperinflation 0 1 2
Cash flow
hedge
revaluation -2 -2
Revaluation of
available for
sale financial
assets 1 1
Tax relating to
compre-hensive
income 0 -2 -2
Total other
compre-hensive
income 0 -5 -1 8 0 3
Balance at
31.3.2014 197 462 -18 0 -31 1,648 72 2,331
Consolidated statement of cash flows (€ million), condensed
1-3/ 1-3/ 1-12/
2014 2013 Change, % 2013
Cash flows from operating activities
Profit before tax -14 16 (..) 242
Planned depreciation 39 37 5.4 152
Finance income and costs 2 3 -52.4 6
Other adjustments 20 -1 (..) 8
Change in working capital
Current non-interest-bearing
operating receivables,
increase (-)/decrease (+) -158 -144 9.4 89
Inventories,
increase (-)/decrease (+) -48 -43 11.1 3
Current non-interest-bearing
liabilities, increase (+)/decrease
(-) 80 87 -7.6 -1
Financial items and tax -15 -13 14.3 -85
Net cash from operating activities -95 -59 61.8 414
Cash flows from investing activities
Investing activities -45 -44 2.0 -174
Sales of fixed assets 2 2 -23.2 22
Increase in non-current receivables 0 0 (..) 0
Net cash used in investing activities -44 -42 4.4 -152
Cash flows from financing activities
Interest-bearing liabilities, increase
(+)/decrease (-) 5 22 -79.1 -47
Current interest-bearing
receivables, increase (-)/decrease (+) -3 1 (..) 78
Dividends paid - - - -122
Equity increase 1 1 0.9 20
Acquisition of own shares -15 - (..) -
Short-term money market investments, increase (-)/
decrease (+) -16 21 (..) -91
Other items 3 -2 (..) 5
Net cash used in financing activities -25 43 (..) 159
Change in cash and cash equivalents -164 -58 (..) 103
Cash and cash
equivalents and current
portion of available-for-sale financial assets at
1 Jan. 453 352 28.7 352
Currency translation difference adjustment and
revaluation -1 0 (..) -2
Cash and cash
equivalents and current
portion of available-for-sale financial assets at
31 Mar. 288 294 -2.1 453
(..) Change over 100%
Group's performance indicators
Change, 1-12/
1-3/2014 1-3/2013 pp 2013
Return on capital employed, % -2.2 3.1 -5.3 10.2
Return on capital employed, %, moving
12 mo 8.9 8.0 0.9 10.2
Return on capital employed, excl. non-
recurring items, % 3.2 3.0 0.3 9.8
Return on capital employed excl. non-
recurring items, %, moving 12 mo 9.9 8.8 1.1 9.8
Return on equity, % -2.0 1.9 -4.0 8.0
Return on equity, %, moving 12 mo 7.0 5.7 1.3 8.0
Return on equity, excl. non-recurring
items, % 2.3 1.8 0.5 7.7
Return on equity excl. non-recurring
items, %, moving 12 mo 7.8 6.6 1.3 7.7
Equity ratio, % 53.2 51.7 1.5 54.5
Gearing, % 1.1 10.2 -9.1 -5.4
Change, %
Capital expenditure, € million 43.4 41.5 4.7 171.5
Capital expenditure, % of net sales 2.0 1.9 6.2 1.8
Earnings per share, basic, € -0.11 0.11 (..) 1.75
Earnings per share, diluted, € -0.11 0.11 (..) 1.75
Earnings per share excl. non-recurring
items, basic, € 0.15 0.11 96.1 1.68
Cash flow from operating activities, €
million -95 -59 61.8 414
Cash flow from investing activities, €
million -44 -42 4.4 -152
Equity per share, € 22.83 22.62 0.9 22.96
Interest-bearing net debt 25 233 (..) -126
Diluted number of shares, average for
the reporting period 99,524 98,724 0.8 99,136
Personnel, average 19,616 19,126 2.6 19,489
(..) Change over 100%
Group's performance 1-3/ 4-6/ 7-9/ 10-12/ 1-3/
indicators 2013 2013 2013 2013 2014
by quarter
Net sales, € million 2,159 2,420 2,374 2,362 2,129
Change in net sales, % -6.9 -1.6 -3.1 -3.9 -1.4
Operating profit, € million 19.2 77.0 84.1 68.0 -13.0
Operating margin, % 0.9 3.2 3.5 2.9 -0.6
Operating profit excl. non-
recurring items, € million 18.6 69.8 83.6 66.8 19.1
Operating margin
excl. non-recurring items, % 0.9 2.9 3.5 2.8 0.9
Finance income/costs, €
million -3.3 0.4 -2.6 -0.4 -1.6
Profit before tax, € million 15.8 77.2 81.5 67.9 -14.4
Profit before tax, % 0.7 3.2 3.4 2.9 -0.7
Return on capital employed,
% 3.1 12.3 14.2 11.5 -2.2
Return on capital employed,
excl. non-recurring items, % 3.0 11.1 14.1 11.3 3.2
Return on equity, % 1.9 9.5 10.2 10.8 -2.0
Return on equity, excl.
non-recurring items, % 1.8 8.6 10.1 10.6 2.3
Equity ratio, % 51.7 50.5 52.9 54.5 53.2
Capital expenditure, €
million 41.5 48.1 35.4 46.6 43.4
Earnings per share, diluted,
€ 0.11 0.50 0.53 0.60 -0.11
Equity per share, € 22.62 21.79 22.39 22.96 22.83
Segment information
Net sales by segment (€ million) 1-3/ 1-3/ Change, 1-12/
2014 2013 % 2013
Food trade, Finland 982 1,036 -5.2 4,316
Food trade, other countries* 25 9 (..) 71
Food trade total 1,007 1,045 -3.7 4,387
- of which intersegment trade 45 43 4.9 172
Home and speciality goods trade, Finland 304 335 -9.2 1,424
Home and speciality goods trade, other
countries* 8 10 -19.8 33
Home and speciality goods trade
total 312 345 -9.5 1,457
- of which intersegment trade 3 3 -20.8 17
Building and home improvement trade, Finland 289 281 2.9 1,173
Building and home improvement trade, other
countries* 292 281 4.2 1,435
Building and home improvement trade total 581 562 3.5 2,607
- of which intersegment trade 0 0 -45.7 -1
Car and machinery trade, Finland 250 231 8.3 921
Car and machinery trade, other
countries* 22 19 20.7 116
Car and machinery trade
total 272 249 9.2 1,037
- of which intersegment trade 0 0 5.8 1
Common operations and
eliminations -44 -42 4.6 -173
Finland total 1,781 1,841 -3.3 7,661
Other countries total* 347 318 9.3 1,654
Group total 2,129 2,159 -1.4 9,315
* Net sales in countries other than Finland.
(..) Change over 100%
Operating profit by segment (€ million) 1-3/ 1-3/ 1-12/
2014 2013 Change 2013
Food trade 45.4 48.2 -2.8 208.0
Home and speciality goods trade -54.5 -17.7 -36.8 -2.1
Building and home improvement trade -9.7 -16.1 6.3 24.8
Car and machinery trade 8.2 7.8 0.5 33.9
Common operations and eliminations -2.5 -3.0 0.5 -16.3
Group total -13.0 19.2 -32.3 248.4
Operating profit excl.
non-recurring items 1-3/ 1-3/ 1-12/
by segment (€ million) 2014 2013 Change 2013
Food trade 46.5 48.2 -1.7 203.3
Home and speciality goods trade -22.7 -17.8 -4.9 -8.3
Building and home improvement trade -10.4 -16.6 6.2 25.7
Car and machinery trade 8.2 7.8 0.5 33.9
Common operations and
eliminations -2.5 -3.0 0.5 -15.8
Group total 19.1 18.6 0.5 238.8
Operating margin
excl. non-recurring items 1-3/ 1-3/ Change, 1-12/
by segment , % 2014 2013 pp 2013 Moving 12 mo 3/2014
Food trade 4.6 4.6 0.0 4.6 4.6
Home and speciality goods trade -7.3 -5.2 -2.1 -0.6 -0.9
Building and home improvement
trade -1.8 -3.0 1.2 1.0 1.2
Car and machinery trade 3.0 3.1 -0.1 3.3 3.2
Group total 0.9 0.9 0.0 2.6 2.6
Capital employed by
segment, cumulative 1-3/ 1-3/ 1-12/
average (€ million) 2014 2013 Change 2013 Moving 12 mo 3/2014
Food trade 781 854 -72 821 809
Home and speciality goods trade 399 477 -78 445 431
Building and home improvement
trade 709 762 -53 732 722
Car and machinery trade 169 170 -1 161 160
Common operations and
eliminations 316 258 58 278 293
Group total 2,375 2,520 -146 2,438 2,416
Return on capital employed excl.
non-recurring items 1-3/ 1-3/ Change, 1-12/
by segment, % 2014 2013 pp 2013 Moving 12 mo 3/2014
Food trade 23.8 22.6 1.2 24.8 24.9
Home and speciality goods trade -22.8 -14.9 -7.9 -1.9 -3.1
Building and home improvement
trade -5.9 -8.7 2.8 3.5 4.4
Car and machinery trade 19.5 18.3 1.1 21.1 21.5
Group total 3.2 3.0 0.3 9.8 9.9
Capital expenditure 1-3/ 1-3/ 1-12/
by segment (€ million) 2014 2013 Change 2013
Food trade 18 17 2 92
Home and speciality goods trade 4 8 -4 23
Building and home improvement trade 12 13 0 38
Car and machinery trade 3 4 -1 15
Common operations and
eliminations 7 1 6 4
Group total 43 41 2 171
Segment information by quarter
Net sales by segment 1-3/ 4-6/ 7-9/ 10-12/ 1-3/
(€ million) 2013 2013 2013 2013 2014
Food trade 1,045 1,099 1,095 1,148 1,007
Home and speciality goods trade 345 322 351 439 312
Building and home improvement trade 562 740 710 596 581
Car and machinery trade 249 301 260 226 272
Common operations and
eliminations -42 -41 -43 -46 -44
Group total 2,159 2,420 2,374 2,362 2,129
Operating profit by 1-3/ 4-6/ 7-9/ 10-12/ 1-3/
segment (€ million) 2013 2013 2013 2013 2014
Food trade 48.2 55.1 56.5 48.3 45.4
Home and speciality goods trade -17.7 -5.6 -2.1 23.3 -54.5
Building and home improvement trade -16.1 18.0 23.9 -1.0 -9.7
Car and machinery trade 7.8 13.0 9.8 3.3 8.2
Common operations and
eliminations -3.0 -3.4 -4.0 -5.9 -2.5
Group total 19.2 77.0 84.1 68.0 -13.0
Operating profit excl. 1-3/ 4-6/ 7-9/ 10-12/ 1-3/
non-recurring items 2013 2013 2013 2013 2014
by segment (€ million)
Food trade 48.2 50.8 56.0 48.3 46.5
Home and speciality goods trade -17.8 -10.0 -2.2 21.6 -22.7
Building and home improvement trade -16.6 19.5 23.9 -1.1 -10.4
Car and machinery trade 7.8 13.0 9.8 3.3 8.2
Common operations and
eliminations -3.0 -3.4 -4.0 -5.4 -2.5
Group total 18.6 69.8 83.6 66.8 19.1
Operating margin excl. 1-3/ 4-6/ 7-9/ 10-12/ 1-3/
non-recurring items 2013 2013 2013 2013 2014
by segment, %
Food trade 4.6 4.6 5.1 4.2 4.6
Home and speciality goods trade -5.2 -3.1 -0.6 4.9 -7.3
Building and home improvement trade -3.0 2.6 3.4 -0.2 -1.8
Car and machinery trade 3.1 4.3 3.8 1.5 3.0
Group total 0.9 2.9 3.5 2.8 0.9
Change in tangible and intangible assets (€ million)
31.3.2014 31.3.2013
Opening net carrying amount 1,840 1,870
Depreciation, amortisation and impairment -39 -37
Investments in tangible and intangible assets 45 43
Disposals -3 -3
Currency translation differences -5 2
Closing net carrying amount 1,839 1,875
Related party transactions (€ million)
The Group's related parties include its key management (the Board of Directors,
the President and CEO and the Group Management Board) and companies controlled
by them, subsidiaries, associates and Kesko Pension Fund.
The following transactions were carried out with related parties:
1-3/2014 1-3/2013
Sales of goods and services 22 22
Purchases of goods and services 7 7
Other operating income 0 0
Other operating expenses 7 7
Finance income and costs 0 0
31.3.2014 31.3.2013
Receivables 11 9
Liabilities 19 28
Fair value hierarchy of financial assets and liabilities (€ million)
Level 1 Level 2 Level 3 31.3.2014
Financial assets at fair value through profit
or loss 14 169 183
Derivative financial instruments at fair value
through profit or loss
Derivative financial assets 5 5
Derivative financial liabilities 25 25
Available-for-sale financial assets 61 203 17 280
Fair value hierarchy of financial assets and liabilities (€ million)
Level 1 Level 2 Level 3 31.3.2013
Financial assets at fair value through profit 98 98
or loss
Derivative financial instruments at fair value
through profit or loss
Derivative financial assets 3 3
Derivative financial liabilities 12 12
Available-for-sale financial assets 18 199 7 225
Level 1 instruments are traded in active markets and their fair values are
directly based on quoted market prices. The fair values of level 2 instruments
are derived from market data. The fair values of level 3 instruments are not
based on observable market data.
Personnel, average and as at 31 March
Personnel average by 1-3/2014 1-3/2013 Change
segment
Food trade 3,294 2,856 438
Home and speciality goods trade 5,547 5,786 -238
Building and home improvement trade 9,129 8,836 293
Car and machinery trade 1,228 1,223 5
Common operations 417 425 -8
Group total 19,616 19,126 490
Personnel at 31 March* 2014 2013 Change
by segment
Food trade 3,696 3,183 513
Home and speciality goods trade 7,786 8,030 -244
Building and home improvement trade 10,191 9,931 260
Car and machinery trade 1,267 1,263 4
Common operations 485 474 11
Group total 23,425 22,881 544
* total number incl. part-time employees
Group's commitments (€ million)
31.3.2014 31.3.2013 Change, %
Own commitments 198 181 9.5
For associates 65 65 0.0
For others 10 10 1.6
Lease liabilities for machinery and equipment 25 25 -2.1
Lease liabilities for real estate 2,312 2,274 1.7
Liabilities arising from
derivative instruments
Fair value
Values of underlying instruments at 31 March 31.3.2014 31.3.2013 31.3.2014
Interest rate derivatives
Interest rate swaps 202 203 -0.62
Currency derivatives
Forward and future contracts 331 234 2.31
Option agreements - 10 -
Currency swaps 100 100 -13.39
Commodity derivatives
Electricity derivatives 27 40 -8.94
Calculation of performance indicators
Operating profit x 100 / (Non-current
assets + Inventories + Receivables +
Return on capital employed*, % Other current assets - Non-interest-
bearing liabilities) on average for
the reporting period
Operating profit for prior 12 months x
Return on capital employed, %, moving 12 100 / (Non-current assets +
mo Inventories + Receivables + Other
current assets - Non-interest-bearing
liabilities) on average for 12 months
Operating profit excl. non-recurring
items x 100 / (Non-current assets +
Return on capital employed Inventories + Receivables + Other
excl. non-recurring items*, % current assets - Non-interest-bearing
liabilities) on average for the
reporting period
Operating profit excl. non-recurring
items for prior 12 months x 100 /
Return on capital employed excl. non- (Non-current assets + Inventories +
recurring items, %, moving 12 months Receivables + Other current assets -
Non-interest-bearing liabilities) on
average for 12 months
(Profit/loss before tax - income tax)
Return on equity*, % x 100 /
Shareholders' equity
(Profit/loss for prior 12 months
Return on equity, %, moving 12 months before tax - income tax for prior 12
months) x100 /
Shareholders' equity
(Profit/loss adjusted for non-
Return on equity excl. recurring items before tax -
non-recurring items*, % income tax adjusted for the tax effect
of non-recurring items) x 100 /
Shareholders' equity
(Profit/loss for prior 12 months
adjusted for non-recurring items
Return on equity excl. non-recurring before tax - income tax for prior 12
items, %, moving 12 months months adjusted for the tax effect of
non-recurring items) x 100 /
Shareholders' equity
Shareholders' equity x 100 /
Equity ratio, % (Balance sheet total - prepayments
received)
(Profit/loss - non-controlling
Earnings/share, diluted interests) /
Average diluted number of shares
(Profit/loss - non-controlling
Earnings/share, basic interests) /
Average number of shares
Earnings/share excl. (Profit/loss adjusted for non-
non-recurring items, recurring items - non-controlling
basic interests) / Average number of shares
Equity attributable to equity holders
Equity/share of the parent /
Basic number of shares at the balance
sheet date
Interest-bearing net liabilities x
Gearing, % 100 / Shareholders' equity
Interest-bearing liabilities - money
Interest-bearing net debt market investments - cash and cash
equivalents
* Indicators for return on capital have been annualised.
K-Group's retail and B2B sales, VAT 0% (preliminary data):
1.1.-31.3.2014
K-Group's retail and € million Change,%
B2B sales
K-Group's food trade
K-food stores, Finland 1,089 -3.8
Kespro 180 -3.5
K-ruoka, Russia 25 (..)
Food trade total 1,293 -2.5
K-Group's home and speciality goods trade
Home and speciality goods stores, Finland 335 -8.6
Home and speciality goods stores, other countries 8 -14.2
Home and speciality goods trade total 343 -8.7
K-Group's building and home improvement trade
K-rauta and Rautia 179 5.2
Rautakesko B2B Service 41 7.3
K-maatalous 91 -1.3
Finland total 311 3.5
Building and home improvement stores, other Nordic
countries 174 -0.2
Building and home improvement stores, Baltic countries 83 18.5
Building and home improvement stores, other countries 73 1.2
Building and home improvement trade total 641 3.9
K-Group's car and
machinery trade
VV-Autotalot 100 11.9
VV-Auto, import 119 11.6
Konekesko, Finland 36 -7.1
Finland total 255 8.7
Konekesko, other countries 23 20.7
Car and machinery trade
total 279 9.6
Finland total 2,170 -2.3
Other countries total 385 9.1
Retail and
B2B sales
total 2,555 -0.7
[HUG#1779506]
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