|
|||
2007-07-18 07:00:00 CEST 2007-07-18 07:00:00 CEST REGULATED INFORMATION Kesko Oyj - Quarterly reportInterim financial report for the period 1 January-30 June 2007KESKO CORPORATION STOCK EXCHANGE RELEASE 18.07.2007 Interim financial report for the period 1 January-30 June 2007 The Group's net sales in April-June 2007 were €2,464 million, up 8.2% on the corresponding period of the previous year (€2,277 million). In April-June, the operating profit excluding non- recurring items was €96.8 million (€89.4 million). The pre-tax profit was €101.2 million (€91.9 million). The consolidated earnings per share were €0.72 (€0.41). The Group's net sales in January-June were €4,658 million, up 9.6% on the corresponding period of the previous year (€4,248 million). In January-June, the operating profit excluding non-recurring items was €156.6 million (€126.0 million). The pre-tax profit was €202.1 million (€242.1 million). The consolidated earnings per share were €1.78 (€1.53). Net sales and profit, continuing operations Net sales and profit in April-June The Group's net sales in April-June 2007 were €2,464 million, which is 8.2% up on the corresponding period of the previous year (€2,277 million). The Group's net sales increased by 5.3% in Finland and by 19.0% abroad. Excluding acquisitions and business disposals, the Group's net sales increase was 8.5%. Exports and foreign operations accounted for 23.0% (21.0%) of net sales. In April-June, the K-Group's (i.e. Kesko's and the chain stores') retail sales were €2,969.4 million, an increase of 8.2% on the corresponding period of the previous year. The Group's profit before taxes for April-June was €101.2 million (€91.9 million). The operating profit excluding non-recurring items was €96.8 million (€89.4 million), representing 3.9% of net sales (3.9%). Especially Rautakesko improved its profit excluding non-recurring items. The operating profit was €103.2 million (€91.6 million). The operating profit was increased by a net total of €6.4 million (€2.2 million) in non-recurring gains and losses from disposal of fixed assets and operations, and impairment charges. The consolidated earnings per share from continuing operations were €0.72 (€0.42). Equity per share was €18.32 (€15.79). Net sales and profit in January-June The Group's net sales in January-June 2007 were €4,658 million, which is 9.6% up on the corresponding period of the previous year (€4,248 million). The Group's net sales increased by 6.6% in Finland and by 22.4% abroad. Excluding acquisitions and business disposals, the Group's net sales increase was 9.9%. Exports and foreign operations accounted for 21.6% (19.3%) of net sales. In January-June the K-Group's (i.e. Kesko's and the chain stores') retail sales were €5,416 million, an increase of 10.4% on the corresponding period of the previous year. The Group's profit before taxes for January-June was €202.1 million (€242.1 million). The Group's profit before taxes included €37.1 million in non-recurring gains on the disposal of SATO Corporation shares. The operating profit excluding non-recurring items was €156.6 million (€126.0 million), up €30.6 million on the previous year, due especially to Kesko Food's and Rautakesko's good profit performances. The operating profit excluding non- recurring items represented 3.4% (3.0%) of net sales. The Group's operating profit was €165.6 million (€242.4 million). The operating profit included a net total of €9.0 million (€116.4 million) in non-recurring gains and losses from disposal of fixed assets and operations, and impairment charges. In 2006, the gains from disposal of fixed assets included €99.3 million received by Kesko for selling its retail store properties to Niam Retail Holding Finland AB. The consolidated earnings per share from continuing operations were €1.49 (€1.57). Equity per share was €18.32 (€15.79). Investments The Group's investments in April-June totalled €62.8 million (€60.1 million), which is 2.5% (2.6%) of net sales. Investments in retail store sites amounted to €45.5 million (€44.1 million). Investments in acquisitions represented €1.5 million (€2.9 million) of total investments. The Group's other investments were €15.8 million. Investments in foreign operating activities represented 25.3% of total investments. The Group's investments in January-June totalled €114.4 million (€116.7 million), which is 2.5% (2.7%) of net sales. Investments in retail store sites amounted to €85.3 million (€81.6 million). Investments in acquisitions represented €2.3 million (€9.1 million) of total investments. The Group's other investments were €26.8 million. Investments in foreign operating activities represented 23.4% of total investments. Finance In April-June, the cash flow from operating activities was €117.1 million (€152.5 million) and the cash flow from investing activities was €-58.3 million (€-60.1 million). The latter included €24 million in proceeds received on the disposal of fixed assets. In January-June, the cash flow from operating activities was €97.0 million (€124.7 million) and the total cash flow from investing activities was €-3.5 million (€100.6 million). The latter was increased by €50 million received on the disposal of food store properties in the Baltic countries, and by €46 million for selling SATO Corporation shares. The comparative cash flow from investing activities was increased by the over €200 million price received in March for selling real estate. At the end of the period, liquid funds totalled €283 million (€117 million). The amount was affected by the €190 million price received in December 2006 for selling Rimi Baltic AB shares. Interest-bearing net debt was €290 million (€564 million). At the end of the period, equity ratio was 46.5% (41.7%) and gearing 16.0% (36.1%). In April-June the Group's net financial expenses were €1.7 million (net financial income €0.4 million). Increase in financial expenses was caused by widening of interest rate differentials in certain currencies. In January-June the consolidated net financial income was €36.2 million (€-1.1 million), positively affected by the €37.1 million non-recurring gain on SATO shares and interest income from liquid funds. Taxes In April-June the Group's taxes were €24.2 million (€46.6 million). The effective tax rate was 23.9%. In January-June the Group's income taxes were €45.9 million (€83.8 million). The year 2006 taxes included taxes from prior periods in the amount of €26.7 million. The taxes have been calculated based on the anticipated effective tax rate of 22.7% for the whole year. Discontinued operations The sale to Rimi Baltic AB of food store properties that had been leased to it was concluded in January. The gain on the disposal was €28.2 million. Seasonal nature of operations The Group's operating activities are affected by seasonal fluctuations. The net sales and operating profits of its business segments are not earned evenly throughout the year. Instead they vary by quarter depending on the characteristics of each business segment. Personnel In April-June the average number of personnel in the Kesko Group was 20,689 (24,254) converted into full-time employees. There was a decrease of 3,565 employees compared with the corresponding period of the previous year. In Finland, the average decrease was 354 employees, while outside Finland it was 3,211. In January-June the average number of personnel in the Kesko Group was 20,305 (23,531) converted into full-time employees. There was a decrease of 3,226 employees compared with the corresponding period of the previous year. In Finland, the average decrease was 322 employees, while outside Finland it was 2,904. The number of personnel mainly decreased as a result of the disposal of the joint venture Rimi Baltic AB in December 2006. At the end of June 2007, the total number of personnel was 24,865 (28,337), of whom 14,829 (14,729) worked in Finland and 10,036 (13,608) in other countries. Compared with the end of June 2006, there was an increase of 100 employees in Finland, and a decrease of 3,572 in other countries. Market review According to Statistics Finland, the Finnish economy grew by 5.0% in 2006, accelerated by a brisk growth in exports, private consumption and investments. In 2007, the growth rate of the Finnish economy is expected to decelerate slightly compared with 2006. It is forecast that private consumption will increase by 2.4% and investments by 3%. The increase in consumer prices is forecast to reach 1.8%. Housing construction investments are estimated to grow by about 2% (ETLA, The Research Institute of the Finnish Economy). According to the preliminary data of Statistics Finland, in January-April 2007, the volume of Finnish retail trade increased by 7.9% compared with the corresponding period of the previous year. The increase in the wholesale trade volume was 6.5% in the same period. The volumes of Finnish retail and wholesale trade are expected to continue to grow also during the latter part of the year. The growth is expected to decelerate somewhat compared with previous years, as the growth of households' buying power slows down. According to Statistics Finland's consumer survey of June, consumers continued to be very confident about their own finances and the growth of Finland's economy. They also had higher expectations of a decrease in unemployment. The Estonian economy is forecast to grow by 8.9%, the Latvian economy by 9.5% and the Lithuanian economy by 7.4% this year. Private consumption is estimated to grow by about 13% in Estonia and by 8-9% in Latvia and Lithuania. Consumer prices are forecast to rise by 4.7% in Estonia, by 6.2% in Latvia and by 4% in Lithuania (Nordea). The retail trade will continue growing briskly in all Baltic countries. This year the Swedish economy and private consumption are forecast to grow by 3.5%. The increase in consumer prices is anticipated to be 1.4% (Nordea). Due to brisk housing construction, total building investments are forecast to continue increasing at a rate of some 4% in 2007 (Sveriges Byggindustrier). The Norwegian economy is forecast to grow by 3.4% and private consumption by 3.2% in 2007. Consumer price inflation is anticipated to be approximately 1% (Nordea). The Russian economy is forecast to grow by 6.5%. Private consumption and investments are estimated to continue increasing at the brisk pace of 15% in 2007 (Nordea). The strong growth in private consumption will be reflected positively in the growth of retail trade. As income levels rise, households will have more money to spend on the maintenance of homes, gardens and countryside houses. The retail trade is growing rapidly and the competitive situation is tightening as new local and foreign operators enter the market. The market and outlook for each of Kesko's business divisions are discussed in the business division reviews of this interim financial report. Divisions Kesko Food In April-June Kesko Food's net sales totalled €982.5 million, up by 5.6%. In January-June the net sales were €1,865.5 million, an increase of 6.9%. In April-June, Kesko Food's operating profit excluding non- recurring items was €41.4 million (4.2% of net sales), i.e. €2.8 million more than in the previous year, and relatively at the same level as in the previous year. Kesko Food's operating profit was @40.9 million (€38.9 million). In January-June, Kesko Food's operating profit excluding non- recurring items was €70.5 million (3.8% of net sales), i.e. €11.3 million, and 0.4 percentage points, more than in the previous year. During the first part of the year, the operating profit increased as a result of improved cost efficiency and good retail sales growth. The operating profit was €70.1 million (€103.6 million). The comparative operating profit was increased by non- recurring gains from property disposals. In April-June Kesko Food's investments totalled €30.5 million (€19.3 million), of which investments in retail store sites were €24.7 million (€19.8 million). In January-June investments totalled €54.8 million (€35.3 million), of which investments in retail store sites were €43.7 million (€32.3 million). In April-June, the retail sales of the K-food stores increased by 6.1%, totalling €1,260 million (incl. VAT). In January-June, the retail sales increased by 7.1% to €2,396 million (incl. VAT). At the end of June, there were a total of 1,066 K-food stores. Kesko Food continued to invest heavily in the development of the K- food store network. In April-June, K-supermarkets were opened in Naantali, Tampere, Eura and Saarijärvi, and K-markets in Kuopio and Karigasniemi. In addition, the expansion of the K-market network to service stations was continued. A K-supermarket in Pieksämäki was expanded into a K-citymarket. In January-March a K- supermarket was opened in Siilinjärvi and a K-market in Nilsiä. Other renovations and extensions were also implemented. The total grocery trade market in Finland has continued to grow steadily. The growth rate for January-June is estimated at about 4.5% up on the previous year. In January-June prices rose at an average monthly rate of 2.0% (Statistics Finland) compared with the corresponding period of the previous year. On 23 April 2007 Kesko Food announced that it had decided to look into opportunities to sell its HoReCa wholesaling subsidiary, Kespro Ltd, and its sourcing operations. Kesko Food's aim is to concentrate more closely on consumer-customer trade in line with its strategy. Kespro will be classified as a discontinuing operation in compliance with the IFRS 5 when it meets the criteria of the standard. Kesko Food's net sales and operating profit excluding non- recurring items are expected to increase in 2007. Rautakesko In April-June, Rautakesko's net sales amounted to €686.6 million, an increase of 20.0%. Net sales in Finland were €266.3 million, an increase of 15.6%. Net sales of foreign subsidiaries were €419.7 million, up 22.8%. Foreign subsidiaries contributed 61.1% to Rautakesko's net sales. In Sweden, the net sales of K-rauta AB increased by 18.1% to €54.9 million. In Estonia, Rautakesko's net sales were up by 35.7% to €26.3 million. In Lithuania, the net sales of UAB Senuku Prekybos Centras (Senukai), in which Rautakesko has a majority interest, increased by 27.8% to €112.0 million. In Latvia, Rautakesko's net sales increased by 51.9% to €22.1 million. In Russia, Stroymaster's net sales grew by 54.2% to €37.0 million. In Norway, Byggmakker's net sales grew by 11.2% and were €164.4 million. In January-June, Rautakesko's net sales amounted to €1,220.7 million, an increase of 22.0%. Net sales in Finland were €481.7 million, an increase of 15.5%. Net sales of foreign subsidiaries were €738.0 million, up 26.7%. Foreign subsidiaries contributed 60.5% to Rautakesko's net sales. In January-June in Sweden, the net sales increased by 20.1% to €88.6 million. In Estonia, the net sales were up by 36.1% to €43.6 million. In Lithuania, the net sales increased by 31.7% to €201.2 million. In Latvia, the net sales increased by 62.0% to €39.4 million. In Russia, Stroymaster's net sales grew by 56.3% to €65.8 million. In Norway, the net sales grew by 15.6% and were €294.4 million. In April-June, Rautakesko's operating profit excluding non- recurring items was €38.7 million (5.6% of net sales), i.e. €7.1 million, or 0.1 percentage points, more than in the corresponding period of the previous year. Rautakesko's operating profit for April-June was €37.6 million (€32.1 million). During the review period, three new stores were opened. In January-June, Rautakesko's operating profit excluding non- recurring items was €55.0 million (4.5% of net sales), i.e. €14.5 million, or 0.5 percentage points, more than in the corresponding period of the previous year. The operating profit excluding non- recurring items increased due to good sales growth and regardless of the fact that a total of seven new stores were opened in January-June. Rautakesko's operating profit for January-June was €56.2 million (€88.5 million). During the comparative period, the operating profit was increased by non-recurring gains on disposal of real estate. In April-June Rautakesko's investments totalled €18.7 million (€14.0 million), of which 54.4% (67.2%) was abroad. In January- June the investments were €38.6 million (€26.9 million), of which 47.6% (51.7%) was abroad. At the end of June, the K-rauta chain in Finland comprised 41 stores and the Rautia chain 105 stores. In April-June the sales of the K-Group's building and home improvement stores in Finland increased by 12.3% to €365 million (incl. VAT). The sales of the Rautakesko B-to-B Service increased by 24.3%. In January-June the sales of the K-Group's building and home improvement stores in Finland increased by 13.4% to €569 million (incl. VAT). The sales of the Rautakesko B-to-B Service increased by 24.1%. Rautakesko operates 17 K-rauta stores in Sweden, the latest of which was opened in Växjö in April. A new K-rauta will be opened in Gävle in August 2007 to replace the outlet destroyed in a fire in August 2006. In Estonia, Rautakesko has five stores now that the fifth K-rauta opened in Tallinn in March. In Latvia, Rautakesko has five stores of its own and two partner stores. A new K-rauta was opened in Tukums in June. In Lithuania, UAB Senuku Prekybos Centras (Senukai) operates 14 Senukai stores and 76 Partnershops. In Norway, Rautakesko owns Byggmakker Norge AS, a company managing the Byggmakker chain of building and home improvement stores. The chain comprises 119 stores, 21 of which are owned by Byggmakker. The other stores of the chain are owned by retailer-entrepreneurs who have signed a chain agreement with Byggmakker. Byggmakker Norge AS opened a new Byggmakker store in Oslo in March. There are seven K-rauta stores in St. Petersburg, Russia, two of which are new and operate in conformity with the K- rauta concept. The building and home improvement market is anticipated to grow in all countries in which Rautakesko operates. In 2007, a growth rate of about 5-10% is forecast for the Nordic countries and 10% for the Baltic countries. The rate forecast for the St. Petersburg area is about 15%. In 2007, Rautakesko will invest heavily in new store sites, employee competence and a uniform information system. It is expected that Rautakesko's net sales and its operating profit excluding non-recurring items will grow in 2007. VV-Auto In April-June VV-Auto's net sales totalled €218.3 million, down by 1.4%. In January-June VV-Auto's net sales totalled €466.2 million, up by 3.2%. The new Volkswagen and Audi retail businesses acquired by VV-Auto at the beginning of March 2006 contributed 1.1% to the growth of VV-Auto's net sales in January-June. In April-June, the operating profit was €8.1 million (3.7% of net sales), down €3.8 million, or 1.7 percentage points, compared with the corresponding period of the previous year. The trend in the operating profit was affected by a dramatic decline in the market for new passenger cars. In January-June, the operating profit was €19.8 million (4.2% of net sales), down €3.2 million, or 0.9 percentage points, compared with the corresponding period of the previous year. Investments totalled €2.0 million (€8.2 million) in April-June. In January-June investments were €3.6 million (€23.4 million). In January-June, first registrations of new passenger cars totalled 77,407 in Finland, down by 10.3% on the previous year. Compared with the previous year, first registrations of vans were up by 16.0% to 9,634. The sale of new cars has been constrained by a rise in interest rates and uncertainty about future tax decisions. In addition, the prices of used cars have come down, which increases the customer's cash payment in exchange. In April-June, VV-Auto's retail sales volume increased by 3.6%. In January-June it grew by 17.1% compared with the corresponding period of the previous year. The growth is mainly attributable to the business acquisition completed in March 2006. In January-June, registrations of Volkswagen passenger cars totalled 7,613 and their market share was 9.8%, compared with 11.0% in the previous year. The number of Volkswagen vans registered was 1,725, while the market share was 17.9% (17.0%). In January-June, first registrations of Audis were 2,698, and the market share was 3.5%, the same as in the previous year. The registrations of new Seat passenger cars totalled 938 in Finland, 407 in Estonia and 124 in Latvia. The market share in Finland was 1.2%, compared with 0.7% in the previous year. It is estimated that Finland's total market for passenger cars in 2007 will fall well short of the previous year. The total market for vans is expected to grow on 2006. In 2007 VV-Auto's net sales are expected to match the previous year's level. Operating profit excluding non-recurring items is expected to be slightly below the previous year's level due to the market trend. Anttila In April-June, Anttila's net sales totalled €111.4 million (€111.5 million). The net sales trend was affected by the closing down of the City department store in Helsinki due to the expiry of the lease in January, and changes in the competitive situation due to the opening of new shopping centres. In January-June, the net sales were €231.1 million, matching last year's level. In April-June, Anttila's operating loss excluding non-recurring items was €1.8 million (-1.6% of net sales), showing an increase of €1.2 million, or 1.1 percentage points, on the corresponding period of the previous year. Anttila's operating profit was €0.1 million (€-0.7 million). In January-June, the operating loss excluding non-recurring items was €2.7 million (-1.2% of net sales), showing an increase of €0.6 million, or 0.3 percentage points, on the corresponding period of the previous year. Anttila's operating loss was €0.8 million (operating profit €10.2 million). Non-recurring items included €1.9 million in gains on the disposal of real estate. In the corresponding period of the previous year, the gains on the disposal of real estate were €12.3 million. Due to the nature of the department store trade, the majority of profits are made towards the end of the year. In January-June the sales of the Anttila department stores were €158.9 million (incl. VAT), down 1.4% due to the closing down of the City department store in Helsinki. The sales of the Kodin Ykkönen department stores for home goods and interior decoration were €74.5 million (incl. VAT), up 2.6%. Distance sales in Finland were €38.4 million (incl. VAT), up 1.5%. The sales trend was affected by a reduction in the number of illustrated catalogues. Online sales, which are part of distance sales, increased by 25.2%. Sales trends varied significantly by product line, with the best performance recorded by entertainment product lines. Trends in the home and speciality goods market vary considerably by product line. The growth is forecast to average 3-5%. In 2007 Anttila's net sales are expected to match the level of the previous year, while its operating profit excluding non-recurring items is expected to remain slightly smaller than in the previous year. Kesko Agro In April-June, Kesko Agro's net sales were €216 million, an increase of 1.8%. The net sales of foreign subsidiaries were €80 million, accounting for 36.9% of net sales. In January-June, the net sales were €385 million, an increase of 2.6%. The net sales of foreign subsidiaries were €128 million, accounting for 33.3% of net sales. In April-June, Kesko Agro's net sales in Finland were €135 million, up by 0.3%. The sales of the agricultural and machinery trade in the Baltic countries increased by 5.7%, which is attributable to the good sales trend of agricultural and construction machinery. In January-June, Kesko Agro's net sales in Finland were €253 million, up by 2.3%. The net sales growth is mainly attributable to the trend in grain and implement sales. The sales in the Baltic countries increased by 3.0% in January-June. In April-June, Kesko Agro's operating profit excluding non- recurring items was €7.9 million (3.6% of net sales), i.e. €0.2 million, or 0.2 percentage points, smaller than in the corresponding period of the previous year. In January-June, the operating profit was €7.2 million (1.9% of net sales), which was €0.7 million, or 0.2 percentage points bigger than in the corresponding period of the previous year. The operating profit, non-recurring items excluded, was affected by the good sales trend and cost savings in Finland. In January-June, Kesko Agro's operating profit was €7.2 million (€7.9 million). Kesko Agro's comparative operating profit included non-recurring gains on the disposal of fixed assets. In April-June, investments totalled €3.1 million, 81.4% of which were in projects abroad. In January-June, investments totalled €5.3 million, 81.2% of which were in projects abroad. At the end of the period under review, the K-maatalous chain comprised 100 agricultural stores in Finland. The sales of the K- maatalous chain increased by 4.0% in April-June to €190 million. In January-June, the sales increased by 9.4% to €325 million (incl. VAT). Kesko Agro has six stores in Estonia, four in Latvia and three in Lithuania. It is estimated that Finland's total agricultural trade market will match the level of the previous year. The total Baltic market is anticipated to grow by about 5-10%. Kesko Agro will discontinue its grain, animal feed and chemicals trade in Lithuania by the end of 2007 because of their poor profitability. With the company concentrating exclusively on machinery trade in Lithuania, the profitability of its operating activities is expected to improve. Regardless of the structural changes taking place in the sector, Kesko Agro's net sales and operating profit excluding non- recurring items in 2007 are expected to match the level of 2006. Other operating activities Other operating activities comprise the reporting for Konekesko, Intersport Finland, Indoor, Musta Pörssi, Kenkäkesko (former WellStep), Tähti Optikko and Kauko-Telko. In April-June, the aggregate net sales from other operating activities were €259 million, up 8.6%. Net sales from foreign operations were €50 million, contributing 19.4% to the net sales. In January-June, the net sales were €506 million, up 9.3%. Net sales from foreign operations were €102 million, contributing 20.1% to the net sales. In April-June, the aggregate operating profit from other operating activities, non-recurring items excluded, was €9.9 million (3.8% of net sales), which was up by €2.8 million, or 0.8 percentage points, on the corresponding period of the previous year. The greatest improvement in operating profit excluding non-recurring items was achieved by Musta Pörssi and Kauko-Telko. The operating profit was €10.1 million (€7.7 million). In January-June, the operating profit excluding non-recurring items was €20.6 million (4.1% of net sales), which was €7.9 million, or 1.4 percentage points bigger than in the corresponding period of the previous year. The operating profit was €20.8 million (€16.1 million). The operating profit was improved by the €0.1 million non-recurring gain on the disposal of fixed assets. The operating profit for the comparative period was improved by the €3.7 million non-recurring gain on the disposal of operating activities and fixed assets. In April-June, investments totalled €3.7 million. In January-June, investments were €6.5 million. In April-June, the net sales of Konekesko were €80 million (€65 million), an increase of 22.4% from the previous year. In Finland, sales were €68.5 million, up by 22.2%. Konekesko's export sales totalled €11.8 million, an increase of 24.2%. In January-June, the net sales were €142 million (€114 million), an increase of 24.3%. In Finland, sales were €118 million, up by 22.4%. Konekesko's export sales totalled €26 million, an increase of 37.0%. In April-June, the net sales of Intersport Finland were €30 million (€30 million), up by 1.8%. The net sales in January-June were €68 million, (€63 million), an increase of 7.0%. In April-June, Indoor's net sales were €48 million (€43 million), up by 11.9%. The aggregate net sales of furniture trade in the Baltic countries and Sweden were €10 million, an increase of 53%. In January-June, the net sales were €94 million (€84 million), up by 11.9%. In January-June, the aggregate net sales of furniture trade in the Baltic countries and Sweden were €20.0 million, an increase of 60.8%. In April-June, the net sales of Musta Pörssi Ltd were €31 million (€29 million), up by 6.8%. In January-June, the net sales were €63 million (€57 million), up by 10.5%. In April-June, the net sales of Kenkäkesko Ltd (former WellStep Ltd) were €5 million (€5 million), a decrease of 2.9%. In January- June, the net sales dropped by 11.5% to €11 million (€12 million). In April-June, the net sales of Tähti Optikko were €5 million (€5 million), up 10.5%. In January-June, the net sales were €11 million (€10 million), an increase of 8.9%. In April-June, Kauko-Telko's net sales were €60 million (€62 million), down 3.0%. Foreign operations contributed €28.1 million, or 46.4%, to the net sales. In January-June, the net sales were €118 million (€125 million), down by 5.2% from the previous year. Foreign operations contributed €55.4 million, or 46.8%, to the net sales. In May, Kesko announced that it would look into opportunities to sell Kauko-Telko (stock exchange release on 23 May 2007). Kauko- Telko will be classified as a discontinuing operation in compliance with the IFRS 5 when it meets the criteria of the standard. It is expected that in 2007, the net sales of other operating activities will match the level of the previous year and the operating profit excluding non-recurring items will increase slightly. Changes in Group structure No significant changes took place in the Group structure during the period under review. Decisions of the Annual General Meeting Kesko Corporation's Annual General Meeting held on 26 March 2007 adopted the financial statements for 2006 and discharged the members of the Board of Directors and the Managing Director from liability. The Annual General Meeting also decided to distribute a dividend of €1.50 per share, as proposed by the Board of Directors, or total dividends of €146,314,669.50. The Annual General Meeting decided to leave the number of Board members unchanged at seven. The members of the Board of Directors elected by the Annual General Meeting of 27 March 2006 are Pentti Kalliala, Ilpo Kokkila, Maarit Näkyvä, Seppo Paatelainen, Keijo Suila, Jukka Säilä and Heikki Takamäki. The term of office of each Board member, in accordance with the Articles of Association, is three years, with the term starting at the close of the General Meeting electing the member and expiring at the close of the third Annual General Meeting after the election (in 2009). The decisions of the Annual General Meeting were published in more detail in a stock exchange release on the day of the meeting and in the 3-month interim financial report. Corporate governance Kesko Food Ltd and Rautakesko Ltd, major subsidiaries fully owned by Kesko Corporation, elected the members of their Boards of Directors at their Annual General Meetings held on 23 March 2007. The compositions of the Boards were announced in a stock exchange release on 23 March 2007. The organising meeting of Kesko Corporation's Board of Directors held after the Annual General Meeting on 26 March 2007 decided to leave the compositions of its committees unchanged. The Board elected Maarit Näkyvä as the Chairman of its Audit Committee, and Seppo Paatelainen and Keijo Suila as its members. The Board elected Heikki Takamäki as the Chairman of its Compensation Committee, and Pentti Kalliala and Keijo Suila as its members. The committees' terms of office always expire at the Annual General Meeting. On the basis of the evaluation of independence carried out by the Board of Directors, all members of the Audit Committee are independent of the company and its significant shareholders. The decisions of the organising meeting of the Board of Directors were published in a stock exchange release on the day of the meeting. Juhani Järvi resigned from the positions of Kesko's Corporate Executive Vice President and Deputy to the President and CEO as of 1 June 2007. He also gave up membership in the Corporate Management Board and in the Boards of Kesko Food Ltd and Rautakesko Ltd. Järvi's duties have been divided between the other Corporate Management Board members. His responsibility areas included corporate development, IT management, real estate services, and corporate responsibility and business development. A more detailed stock exchange release about the matter was published on 24 May 2007. Shares and the securities market and Board authorisations At the end of the review period, Kesko Corporation's share capital totalled €195,471,598. Of all shares, 31,737,007, i.e. 32.5%, were A shares and 65,998,792, i.e. 67.5%, were B shares. During the review period, the share capital was increased three times by share subscriptions with the stock options of the year 2003 option scheme. The increases were made on 12 February 2007 (€46,376), 26 April 2007 (€86,800) and 29 May 2007 (€298,572) and were announced in stock exchange notifications on the respective dates. The subscribed shares were included on the main list of the Helsinki Stock Exchange for public trading with the old B shares on 13 February 2007, 27 April 2007 and 30 May 2007. The price of a Kesko A share was €38.43 at the end of 2006 and €47.40 at the end of the review period in June 2007, representing an increase of 23.3%. The price of a B share was €40.02 at the end of 2006 and €49.34 at the end of June 2007, an equal increase of 23.3%. From the beginning of 2007 until the end of June 2007, the Helsinki Stock Exchange All Share index (OMX Helsinki) rose by 17.9%, the weighted OMX Helsinki CAP index by 13.4%, and the Consumer Staples Index by 24.2% during the review period. At the end of the review period, the market value of A shares was €1,504.3 million, while that of B shares was €3,256.4 million. Their combined market capitalisation was €4,760.7 million, an increase of €909 million from the beginning of the year. During the first part of 2007, approximately 2.5 million A shares were traded on the Helsinki Stock Exchange at a total value of €112.3 million, while 63.7 million B shares were traded at a total value of €2,822.2 million. The 2003D stock options of the year 2003 option scheme were included on the main list of the Helsinki Stock Exchange on 1 April 2005. The number of 2003D options traded during the review period was 81,288 at a total value of €3.2 million. The 2003E stock options were included on the main list of the Helsinki Stock Exchange on 3 April 2006. The number of 2003E options traded during the review period was 114,549 at a total value of €4.9 million. The 2003F stock options were included on the main list of the Helsinki Stock Exchange on 2 April 2007. The number of 2003F options traded during the review period was 227,552 at a total value of €7.6 million. The Board of Directors was authorised by the Annual General Meeting of 26 March 2007 to issue a maximum of 20,000,000 new B shares against payment. The authorisation also includes a right to deviate, for a weighty financial reason, from the shareholders' pre-emptive right with a rights issue so that the issued shares can be used as consideration in possible company acquisitions, other arrangements concerning the company's operating activities, or to finance investments. The authorisation is valid for two years from the decision of the Annual General Meeting. The Annual General Meeting of 26 March 2007 decided to grant stock options for no consideration to the Kesko Group management, other key Kesko personnel, and to Sincera Oy, a subsidiary wholly owned by Kesko Corporation. The stock options shall be marked with the symbols 2007A, 2007B and 2007C, and their total number shall be 3,000,000 at the maximum. Each option entitles its holder to subscribe for one B share, so that a maximum of 3,000,000 new B shares can be subscribed for with the options in compliance with the terms and conditions of the stock option plan. The Board's share issue authorisation and the year 2007 stock option scheme were disclosed in more detail in a stock exchange release on 26 March 2007. The Board has no other valid authorisation concerning an issue of shares, options or other special rights entitling to shares. Flagging notifications Kesko Corporation did not receive any flagging notifications during the review period Main events Fiesta Real Estate AS, an Estonian subsidiary of Kesko Corporation, sold the food trade properties leased by Rimi Baltic AB in Estonia to Rimi Baltic for €50 million. Kesko was expected to gain approximately €25 million on the property transaction. The €28.2 million gain on the disposal was recognised in discontinued operations for the first quarter of 2007 (stock exchange release on 4 January 2007). On 16 February 2007, Kesko Corporation and Varma Mutual Pension Insurance Company completed a deal in which Kesko sold its SATO Corporation shares to Varma. Kesko's ownership interest in SATO was approximately 16.5%. The price of the shares was about €46 million and the gain on the disposal (€37.1 million) was recognised for the first quarter of 2007 (stock exchange releases on 7 and 16 February 2007). Kesko Food has decided to look into opportunities to sell its HoReCa wholesaling subsidiary, Kespro Ltd, and its sourcing operations (stock exchange release on 23 April 2007). Kesko Corporation's Board of Directors specified the company strategy. Based on the expansion of the Group's international operations and the current business outlook, the targets for return on capital were raised. The new target for return on equity is 14% (previously 12%) and that for invested capital 16% (previously 12%). In the next few years, provisions will be made for large-scale store site investments in Finland and the other operating countries. The Board also decided to look into possibilities to sell Kauko-Telko (stock exchange release on 23 May 2007). Events after the end of the review period No significant events took place after the end of the review period. Future outlook Kesko's operating activities are affected by the economic outlook in its different market areas and especially by the growth rate of private consumption and any changes therein. Markets in the Baltic countries and in the St. Petersburg region in Russia are expected to continue more rapid growth than markets in the Nordic countries. In 2007, the Kesko Group divisions are expected to perform as described in the above division reviews. Due to the more rapid market growth and the expansion of the retail store network in other operating countries than Finland, the Group's sales will continue to grow more strongly outside Finland. The Group's sales are expected to grow in the next six months, but at a slightly slower rate than during the first six months of the year. The Kesko Group's operating profit for the next six months, non- recurring items excluded, is expected to remain at a good level. Helsinki, 17 July 2007 Kesko Corporation Board of Directors The figures of the interim financial report are unaudited. Further information is available from Arja Talma, Senior Vice President, CFO, telephone +358 1053 22113, and Jukka Erlund, Corporate Business Controller, telephone +358 1053 22338. A Finnish-language webcast on the interim result can be accessed at www.kesko.fi at 11.00. An English-language web conference on the interim financial report will be held today at 14.30 (Finnish time). The web conference login is available at www.kesko.fi. KESKO CORPORATION Paavo Moilanen Senior Vice President, Corporate Communications ATTACHMENTS Consolidated income statement Consolidated balance sheet Consolidated statement of changes in equity Consolidated cash flow statement Group indicators Group contingent liabilities Net sales by division Operating profit by division Operating profit by division excluding non-recurring items Investments by division Group indicators by quarter Divisions' net sales by quarter Divisions' operating profits by quarter Divisions' operating profits, excluding non-recurring items, by quarter Personnel, average number and number at 30 June The K-Group retail sales Kesko Corporation's nine-month interim financial report for 2007 will be published on 17 October 2007. In addition, the Kesko Group sales figures will be published each month. News releases and other company information are available at www.kesko.fi. DISTRIBUTION Helsinki Stock Exchange Main news media ******** ATTACHMENTS: This interim financial report has been prepared in accordance with the IAS 34 standard. The interim financial report has been prepared in accordance with the same principles as the annual financial statements for 2006. Consolidated income statement (€ million) 1-6 1-6 Change 4-6 4-6 Change 1-12 2007 2006 % 2007 2006 % 2006 Net sales 4,658 4,248 9.6 2,464 2,277 8.2 8,749 Cost of sales -3,990 -3,638 9.7 -2,110 -1,944 8.6 -7,474 Gross profit 667 610 9.4 354 334 6.0 1,275 Other operating 282 372 -24.2 152 138 9.9 661 income Staff cost -273 -263 3.8 -142 -137 3.6 -544 Depreciation and -57 -60 -4.5 -29 -30 -5.0 -160 impairment charges Operating expenses -453 -417 8.8 -233 -214 8.8 -869 Operating profit 166 242 -31.7 103 92 12.6 363 Financial income* 58 17 (..) 9 10 -10.0 38 Financial expenses -22 -18 21.2 -10 -9 12.4 -44 Income from 0 1 -65.6 0 0 59.7 1 associates Profit before 202 242 -16.5 101 92 10.2 358 taxes Income tax -46 -84 -45.3 -24 -47 -48.1 -107 Net profit from 156 158 -1.3 77 45 70.2 251 continuing operations Net profit from 28 -3 (..) 0 -2 (..) 129 discontinued operations* Net profit 184 155 19.0 77 44 76.9 379 Attributable to: Equity holders 175 150 16.7 71 40 78.4 369 of the parent company Minority 9 5 87.0 6 4 60.6 11 interest Earnings per share (€) for profit attributable to the equity holders of the parent company Continuing operations Basic 1.50 1.58 -4.9 0.73 0.43 69.9 2.47 Diluted 1.49 1.57 -4.8 0.72 0.42 70.0 2.45 Whole Group Basic 1.79 1.55 15.9 0.73 0.41 77.1 3.80 Diluted 1.78 1.53 16.0 0.72 0.41 77.3 3.76 * Change over 100% Income tax has been calculated on the profit for the review period as a proportion of the estimated tax for the whole financial year. Consolidated balance sheet (€ million) 30.6.200 30.6.200 Change, 31.12.20 7 6 % 06 ASSETS Non-current assets Intangible assets 252 306 -17.8 248 Tangible assets 1,119 1,175 -4.8 1,115 Investments 31 37 -18.2 38 Loans and receivables 147 163 -9.7 126 Pension assets 233 218 7.2 220 Total 1,781 1,899 -6.2 1,746 Current assets Inventories 833 800 4.2 789 Trade and other receivables 1,034 937 10.3 852 Marketable securities* 227 59 (..) 341 Cash on hand and balances 56 58 -3.1 57 with banks Non-current assets held for 1 2 -39.5 22 sale Total 2,151 1,856 15.9 2,061 Total assets 3,932 3,754 4.7 3,807 * Change over 100% Consolidated balance sheet (€ million) 30.6.2007 30.6.2006 Change, % 31.12.20 06 EQUITY AND LIABILITIES Equity 1,790 1,536 16.5 1,750 Minority interest 28 26 7.8 27 Total equity 1,818 1,562 16.4 1,777 Non-current liabilities Pension obligations 4 4 0.5 4 Interest-bearing 316 388 -18.5 317 Non-interest-bearing 15 20 -24.7 18 Deferred tax liabilities 116 119 -2.8 113 Provisions 17 19 -6.1 18 Total 468 549 -14.8 469 Current Interest-bearing 257 294 -12.4 293 Non-interest-bearing 1,375 1,344 2.4 1,254 Provisions* 14 6 (..) 14 Total 1,646 1,643 0.2 1,561 Total equity and 3,932 3,754 4.7 3,807 liabilities * Change over 100% Consolidated statement of changes in equity (€ million) Share Issue Share Other Curre Reval Re- Minor Total capit of premi- reser n-cy u- taine ity al share um ves trans-ation d inter capit latio surpl earni est al n us ngs diffe r- ences Balance at 1 Jan. 193 1 189 246 -4 0 857 27 1,508 2006 Shares 5 subscribed 2 -1 4 for with options Option cost 1 1 Currency translatio 1 1 n difference s Fair value changes 4 4 Dividend -106 -6 -112 Net profit for the 150 5 155 period Balance at 30 Jun. 195 0 194 246 -3 4 901 26 1,562 2006 Balance at 1 Jan. 195 0 196 246 -6 0 1,120 27 1,777 2007 Shares subscribed 0 0 2 2 for with options Option 0 0 cost Currency translatio 3 1 4 n difference s Minority interest 1 1 Fair value 3 3 changes Other changes 2 2 Dividend -146 -9 -155 Net profit for the 175 9 184 period Balance at 30 Jun. 195 0 198 246 -3 3 1,151 28 1,818 2007 Consolidated cash flow statement (€ million) 1-6 1-6 Change 4-6 4-6 Change 1-12 2007 2006 % 2007 2006 % 2006 Cash flow from operating activities Profit before tax 230 238 -3.4 101 90 12.5 487 Planned depreciation 57 66 -13.7 29 33 -13.3 142 Financial income and -36 2 (..) 2 0 (..) 7 expenses* Other adjustments -50 -127 -60.4 -11 -6 83.2 -215 Working capital Current non-interest- -146 -149 -1.8 -51 -60 -15.1 -85 bearing trade receivables, increase ( -)/ decrease (+) Inventories -44 -12 (..) 8 22 -65.5 -36 increase ( -)/ decrease (+)* Current non-interest- 136 147 -7.5 64 98 -34.8 142 bearing liabilities, increase (+)/decrease (- ) Financial items and -51 -40 26.1 -25 -25 -1.8 -114 taxes Net cash from operating 97 125 -22.5 117 153 -23.2 328 activities Cash flow from investing activities Investments -125 -113 10.6 -68 -60 13.1 -237 Disposals of fixed 137 254 -46.3 24 21 15.7 450 assets Loans granted -15 -40 -62.5 -15 -21 -29.9 -10 Net cash used in -3 101 (..) -58 -60 -2.9 203 investing activities* Cash flow from financing activities Debt increase* 0 17 (..) 0 -5 (..) 18 Debt decrease -64 -139 -53.5 -12 -51 -77.3 -159 Dividends paid -146 -107 37.1 -146 -107 36.8 -113 Equity increase 2 5 -54.2 2 0 (..) 6 Short-term money market 31 0 (..) 28 0 (..) -140 investments* Other items* 0 0 (..) -3 0 (..) -3 Net cash used in -178 -224 -20.4 -130 -163 -20.0 -390 financing activities Change in cash and cash -85 2 (..) -72 -71 2.3 141 equivalents* Cash and cash 257 115 (..) 0 1 (..) 115 equivalents at 1 Jan. * Currency translation 0 0 (..) 0 0 (..) 1 difference* Cash and cash 172 117 47.8 -72 -70 2.7 257 equivalents at 30 Jun. * Change over 100% Group indicators 6/2007 6/2006 Change, % Return on invested capital, % 20.6 22.6 -8.6 Return on invested capital, %, 22.3 16.9 31.9 moving 12 months Return on equity, % 20.5 20.2 1.6 Return on equity, moving 12 24.2 15.7 54.0 months Equity ratio, % 46.5 41.7 11.3 Investments, € million* 114.4 116.7 -2.0 Earnings per share, basic, €* 1.50 1.58 -4.9 Earnings per share, diluted, €* 1.49 1.57 -4.8 Earnings per share, basic, €** 1.79 1.55 15.9 Earnings per share, diluted, 1.78 1.53 16.0 €** Equity per share, € 18.32 15.79 16.0 Personnel, average 20,305 23,531 -13.7 * Continuing operations ** Whole Group Divisions Net sales by 1-6/2007 1-6/2006 Change 4-6/2007 4-6/2006 Change division, continuing € € % € € ,% operations million million million million Kesko Food, Finland 1,858 1,736 7.0 978 926 5.7 Kesko Food, other 8 9 -13.2 4 4 -8.5 countries* Kesko Food, total 1,866 1,745 6.9 983 931 5.6 Rautakesko, Finland 482 417 15.5 266 230 15.6 Rautakesko, other 739 583 26.7 420 342 22.9 countries* Rautakesko, total 1,221 1,001 22.0 687 572 20.0 VV-Auto, Finland 452 444 1.9 210 216 -3.0 VV-Auto, other 14 8 76.7 8 5 67.7 countries* VV-Auto, total 466 452 3.2 218 221 -1.4 Anttila, Finland 221 221 0.0 107 107 0.2 Anttila, other 10 11 -4.2 4 4 -7.6 countries* Anttila, total 231 231 -0.2 111 112 -0.1 Kesko Agro, Finland 253 248 2.3 135 135 0.3 Kesko Agro, 131 127 3.2 81 78 4.4 other countries* Kesko Agro, total 385 375 2.6 216 212 1.8 Other operating 405 381 6.2 208 194 7.2 activities, Finland Other operating 102 82 23.7 50 44 14.8 activities, foreign countries* Other operating 506 463 9.3 259 238 8.6 activities, total Common operations -17 -19 -9.8 -9 -9 6.2 and eliminations Finland, total 3,654 3,428 6.6 1,896 1,800 5.3 Other countries, 1,004 820 22.4 568 477 19.0 total* Group, total 4,658 4,248 9.6 2,464 2,277 8.2 * Exports and net sales in other countries than Finland Operating profit by 1- 1- Change 4- 4- Change division incl. non- 6/2007 6/2006 , € 6/2007 6/2006 , € recurring items € € millio € € millio millio millio n millio millio n n n n n Kesko Food 70.1 103.6 -33.6 40.9 38.9 2.0 Rautakesko 56.2 88.5 -32.3 37.6 32.1 5.6 VV-Auto 19.8 23.0 -3.2 8.1 11.9 -3.8 Anttila -0.8 10.2 -10.9 0.1 -0.7 0.8 Kesko Agro 7.2 7.9 -0.7 7.9 8.1 -0.2 Other operating 20.8 16.1 4.7 10.1 7.7 2.4 activities Common operations -7.7 -6.9 -0.8 -1.6 -6.3 4.7 and eliminations Group's operating 165.6 242.4 -76.8 103.2 91.6 11.6 profit Operating profit by 1- 1- Change 4- 4- Change division excl. non- 6/2007 6/2006 , € 6/2007 6/2006 , € recurring items € € millio € € millio millio millio n millio millio n n n n n Kesko Food 70.5 59.1 11.3 41.4 38.7 2.8 Rautakesko 55.0 40.5 14.5 38.7 31.7 7.1 VV-Auto 19.8 23.0 -3.2 8.1 11.9 -3.8 Anttila -2.7 -2.1 -0.6 -1.8 -0.6 -1.2 Kesko Agro 7.2 6.5 0.7 7.9 8.1 -0.2 Other operating 20.6 12.7 7.9 9.9 7.2 2.8 activities Common operations -13.7 -13.7 0.0 -7.5 -7.5 0.0 and eliminations Total 156.6 126.0 30.6 96.8 89.4 7.4 Investments by 1- 1- Change, 4- 4- Change, division 6/2007 6/2006 € 6/2007 6/2006 € € € million € € million million million million million Kesko Food 55 35 20 30 19 11 Rautakesko 39 27 12 19 14 5 VV-Auto 4 23 -20 2 8 -6 Anttila 3 3 -1 1 1 0 Kesko Agro 5 5 1 3 3 0 Other operating 9 23 -14 7 14 -7 activities and common operations Group, total 114 117 -2 63 60 3 Group's contingent liabilities 6/2007 6/2006 Change, % (€ million) For own commitments 266 273 -2.4 For associates - - - For shareholders 1 1 0.0 For others 12 32 -63.7 Lease liabilities 12 9 40.7 Liabilities arising from derivative financial instruments Fair value Values of underlying 6/2007 6/2006 30.6.2007 instruments at 30 Jun. Interest rate derivatives Forward and future contracts 58 42 -0.12 Interest rate swap contracts 202 204 0.15 Currency derivatives Forward and future contracts 330 177 -0.74 Currency swap contracts 100 100 -11.56 Commodity derivatives Electricity derivatives 40 35 3.63 Grain derivatives - 1 - * Change over 100% Figures by quarter Group indicators by 1-3/ 4-6/ 7-9/ 10-12/ 1-3/ 4-6/ quarter 2006 2006 2006 2006 2007 2007 Net sales, € million 1,971 2,277 2,196 2,304 2,193 2,464 Change in net sales, % 15.6 12.8 6.2 8.2 11.3 8.2 Operating profit, € 150.8 91.6 82.6 37.6 62.4 103.2 million Operating profit, % 7.7 4.0 3.8 1.6 2.8 4.2 Operating profit excl. 36.6 89.4 82.4 71.4 59.8 96.8 non-recurring items, € million Operating profit excl. 1.9 3.9 3.7 3.1 2.7 3.9 non-recurring items, % Financial -1.5 0.4 1.5 -5.9 37.9 -1.7 income/expenses, € million Profit before tax, € 150 92 84 31 101 101 million Profit before tax, % 7.6 4.0 3.8 1.4 4.6 4.1 Return on invested 27.8 17.7 16.5 30.4 23.5 18.6 capital, % Return on equity, % 29.4 11.3 17.4 36.4 24.4 17.3 Equity ratio, % 41.2 41.7 43.8 47.0 44.6 46.5 Investments, € 56.6 60.1 45.8 88.0 51.6 62.8 million* Earnings/share, €* 1.14 0.42 0.67 0.21 0.77 0.72 Equity/share, € 15.43 15.79 16.46 17.94 17.52 18.32 * Continuing operations Calculation of indicators Return on invested Profit before extraordinary items + capital = interest and other financial expenses x 100/ Balance sheet total - non-interest- bearing debt (average) Return on equity = Profit before extraordinary items - income tax x 100/ Shareholders' equity + minority interest (average) Equity ratio = Equity + minority interest x 100/ Balance sheet total - advances received Earnings/share, Profit before taxes - income tax - diluted = minority interest/ Average number of shares adjusted for dilutive effect of options Equity/share = Equity/ Number of shares at end of period Divisions' net sales 1-3/ 4-6/ 7-9/ 10-12/ 1-3/ 4-6/ by quarter, € million 2006 2006 2006 2006 2007 2007 Kesko Food 814 931 899 971 883 983 Rautakesko 428 572 588 541 534 687 VV-Auto 230 221 186 152 248 218 Anttila 120 112 132 185 120 111 Kesko Agro 162 212 174 206 168 216 Other operating 225 238 225 257 248 259 activities Common operations and -10 -9 -6 -7 -7 -9 eliminations Group's net sales 1,971 2,277 2,196 2,304 2,193 2,464 Divisions' operating 1-3/ 4-6/ 7-9/ 10-12/ 1-3/ 4-6/ profits by quarter, € 2006 2006 2006 2006 2007 2007 million Kesko Food 64.8 38.9 32.6 36.9 29.2 40.9 Rautakesko 56.5 32.1 34.3 16.5 18.6 37.6 VV-Auto 11.1 11.9 5.0 1.5 11.7 8.1 Anttila 10.8 -0.7 7.1 21.4 -0.9 0.1 Kesko Agro -0.1 8.1 1.0 0.3 -0.6 7.9 Other operating 8.4 7.7 6.2 -17.4 10.7 10.1 activities Common operations -0.6 -6.3 -3.6 -21.6 -6.1 -1.6 Group's operating 150.8 91.6 82.6 37.6 62.4 103.2 profit Divisions' operating 1-3/ 4-6/ 7-9/ 10-12/ 1-3/ 4-6/ profits, excl. non- 2006 2006 2006 2006 2007 2007 recurring items, by quarter, € million Kesko Food 20.5 38.7 32.5 37.0 29.0 41.4 Rautakesko 8.8 31.7 34.2 16.5 16.3 38.7 VV-Auto 11.1 11.9 5.0 1.5 11.7 8.1 Anttila -1.5 -0.6 7.1 21.4 -0.9 -1.8 Kesko Agro -1.6 8.1 1.0 0.3 -0.6 7.9 Other operating 5.5 7.2 6.2 2.7 10.6 9.9 activities Common operations -6.2 -7.5 -3.6 -8.0 -6.3 -7.5 Group's operating 36.6 89.4 82.4 71.4 59.8 96.8 profit Personnel, 4-6/2007 4-6/2006 Change average number Kesko Food 6,132 6,335 -203 Rautakesko 8,390 7,259 1131 VV-Auto 756 661 95 Anttila 2,074 2,098 -24 Kesko Agro 819 887 -68 Other operating 2,518 2,586 -68 activities and common operations Group companies, total 20,689 19,826 863 Kesko Food's joint 0 4,428 -4,428 ventures Kesko Group, total 20,689 24,254 -3,565 Personnel at 30 Jun.* 2007 2006 Change Kesko Food 8,274 8,053 221 Rautakesko 9,274 8,063 1,211 VV-Auto 794 693 101 Anttila 2,888 2,916 -28 Kesko Agro 840 924 -84 Other operating 2,795 2,815 -20 activities and common operations Group companies, total 24,865 23,464 1,401 Kesko Food's joint 0 4,873 -4,873 ventures Kesko Group, total 24,865 28,337 -3,472 * Total number including part-time employees The K-Group's retail sales (incl. VAT) (preliminary data): 1.1.-30.6.2007 1.4.-30.6.2007 € Change, € Change, million % million % K-Group food stores K-citymarket 841.7 6.0 446.9 4.3 K-supermarket 713.3 6.3 372.8 5.9 K-market 582.0 11.9 304.1 11.4 Other K-food stores and 258.5 2.5 135.8 1.6 mobile stores Finland, total 2,395.6 7.1 1,259.6 6.1 Food stores, total 2,395.6 7.1 1,259.6 6.1 K-Group building and home improvement stores K-rauta 312.0 12.6 197.8 10.6 Rautia 256.6 14.3 167.1 14.3 Finland, total 568.6 13.4 364.9 12.3 K-rauta, Sweden 111.4 20.4 68.8 18.3 K-rauta, Estonia 51.5 37.9 31.0 37.6 K-rauta, Latvia 46.5 62.7 26.1 52.9 Senukai, Lithuania 238.1 31.7 132.7 28.0 Stroymaster, Russia 77.6 56.3 43.7 54.2 Byggmakker, Norway 535.3 11.9 303.7 8.4 Other countries, total 1,060.4 22.3 606.0 18.8 1,629.0 19.0 Building and home improvement stores, total 971.0 16.3 Kesko Group car stores Helsingin VV-Auto and Turun 233.8 17.1 118.2 3.6 VV-Auto Finland, total 233.8 17.1 118.2 3.6 Anttila Anttila department stores 158.9 -1.4 77.4 -1.7 Kodin Ykkönen department 74.5 2.6 stores for home goods and interior decoration 38.2 3.3 Distance sales (Mail Order 38.4 1.5 and NetAnttila) 16.4 2.5 Finland, total 271.8 0.1 132.0 0.2 Anttila Mail Order, Estonia 9.9 -6.3 3.8 -10.9 and Latvia Other countries, total 9.9 -6.3 3.8 -10.9 Anttila, total 281.7 -0.1 135.8 -0.1 K-Group agricultural stores K-maatalous 324.6 9.4 190.3 4.0 Finland, total 324.6 9.4 190.3 4.0 Kesko Agro, Estonia 38.6 -15.0 24.1 -24.6 Kesko Agro, Latvia 56.1 5.1 36.7 8.8 Kesko Agro, Lithuania 44.5 11.2 27.4 2.9 Other countries, total 139.2 0.3 88.2 -4.5 Agricultural stores, total 463.8 6.5 278.5 1.2 Other operating activities Kesko Group machinery stores Yahama Center 11.6 6.5 9.5 8.7 Finland, total 11.6 6.5 9.5 8.7 K-Group home and speciality goods stores Intersport 123.7 5.8 57.9 3.1 Kesport 14.0 4.0 7.0 2.7 Asko 44.5 4.0 22.3 5.2 Sotka 55.2 4.9 28.2 1.6 Musta Pörssi 86.0 10.4 41.0 10.0 Andiamo and K-kenkä 22.0 -6.8 12.9 -15.3 Kenkäexpertti 6.3 -6.2 3.6 -15.0 Tähti Optikko chain 25.2 1.9 11.9 0.2 Finland, total 376.9 5.1 184.8 2.4 Furniture sales, Sweden, 24.0 59.5 Estonia and Latvia 12.0 55.3 Other countries, total 24.0 59.5 12.0 55.3 Home and speciality goods 400.9 7.3 stores, total 196.8 4.6 Other operating activities, 412.4 7.2 206.3 4.7 total Finland, total 4,182.7 7.9 2,259.3 6.1 Other countries, total 1,233.6 19.6 710.1 15.6 Retail sales, total 5,416.3 10.4 2,969.4 8.2 |
|||
|