23 July 2010 CFO Arja Talma - Kesko · Page 20 Q2 2010 Media and analyst briefing 23.7.2010 ATa...

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Interim report January-June 2010 23 July 2010 CFO Arja Talma

Transcript of 23 July 2010 CFO Arja Talma - Kesko · Page 20 Q2 2010 Media and analyst briefing 23.7.2010 ATa...

Interim report

January-June 2010

23 July 2010

CFO Arja Talma

Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 2

Increasing customer satisfaction

and efficiency generate results

• Positive trend in Kesko’s net sales strengthened and profit improved

clearly compared to the previous year

• K-citymarket, Anttila, Asko, Sotka and Intersport clearly improved their

profitability

• Volkswagen, Audi and Seat achieved record market share at 19.9%

• K-food stores’ market share increased. K-food stores’ grocery sales

grew by 3.3%

• Sales in the building and home improvement trade are growing in

Finland, Sweden and Norway

• Solvency and liquidity at excellent level, lower hedging costs and tax

rate

• Net sales and operating profit excluding non-recurring items are

expected to grow during the next twelve months

Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 3

Net sales by division

1.4.-30.6. (M€)

2010 2009 Change,%

Food trade 976 974 0.2

Home and speciality goods trade 334 331 0.9

Building and home improvement trade 712 643 10.6

Car and machinery trade 298 233 27.6

Common operations and eliminations -41 -39 4.6

Total 2,279 2,143 6.4

1 713 1 748 1 741 1 807 1 686 1 870

304395 392 346

272

409

0

500

1 000

1 500

2 000

2 500

Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 4

+3.6%

+7.0%

Group’s net sales by quarter(M€)

-11.4%

Q1

2009

Finland Other countries

-15.9%

Q2 Q3

-12.4% -7.7%

Q4 Q1

2010

Q2

+6.4%

-3.0%

1,713 1,748 1,741 1,807 1,686 1,870

Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 5

Net sales by division

1.1.-30.6. (M€)

2010 2009 Change,%

Food trade 1,888 1,861 1.4

Home and speciality goods trade 689 677 1.8

Building and home improvement trade 1,207 1,173 2.9

Car and machinery trade 534 529 0.9

Common operations and eliminations -81 -80 1.5

Total 4,237 4,160 1.8

Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 6

Operating profit excl. non-recurring items

by division 1.4.-30.6. (M€)

2010 2009 Change

Food trade 42.1 30.1 12.0

Home and speciality goods trade 7.0 -6.0 13.0

Building and home improvement trade 17.9 14.8 3.1

Car and machinery trade 14.1 1.9 12.2

Common operations and eliminations -3.1 -4.4 1.3

Total 78.1 36.4 41.7

Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 7

Operating profit by quarter(M€)

3,4

36,4 47,5 68,0

20,9

78,1

19,8

6,3

0,8

50,1

0,1

1,0

0

30

60

90

120

Q1 Q2 Q3 Q4 Q1 Q2

Liikevoitto ilman kertaluonteisia eriä Kertaluonteiset erät

20102009

19.8

50.1

0.1

1.0

0.8

78.1

20.9

68.047.536.4

Operating profit excl. non-recurring items Non-recurring items

Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 8

Operating profit excl. non-recurring items

by division 1.1.-30.6. (M€)

2010 2009 Change

Food trade 73.7 63.9 9.9

Home and speciality goods trade 7.1 -16.7 23.8

Building and home improvement trade 4.2 5.6 -1.5

Car and machinery trade 20.5 -4.1 24.6

Common operations and eliminations -6.5 -9.0 2.4

Total 99.0 39.8 59.2

39,8

99,026,1

1,0

-9,5

0,6

-10

10

30

50

70

90

110

1-6/2009 1-6/2010

Rahoitusnetto ja osakkuusyhtiötulos ilman kertaluonteisia eriä

Kertaluonteiset erät

Liikevoitto ilman kertaluonteisia eriä

Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 9

Group’s profit before tax1-6/2010 (M€)

56.5

100.6

39.8

26.1 99.0

1.0

-9.5

0.6

Operating profit excl. non-recurring items

Non-recurring items

Net financial items and income from associates excl. non-recurring items

0

50

100

2009 2010

Operating profit excl. non-recurring items Non-recurring items

0

500

1 000

1 500

2 000

2009 2010

Finland Other countries

Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 10

Food trade 1-6/2010

Operating profit 1-6, M€

Net sales 1-6, M€

76.1 73.9

1,861 1,888 +1.4%

12.2 0.1

63.9 73.7

• K-food stores’ grocery sales grew by

3.3% (VAT 0%)

• Growing customer satisfaction and

efficiency reflected in sales and profit

growth

• Four new K-supermarkets and six K-

markets were opened during the first

part of the year

• Stores opened during the last few

years have rapidly achieved

targeted sales levels

• Investments in store site network were

€28.2 million (€34.2 million)

0

200

400

600

800

2009 2010

Finland Other countries

-16,7

7,19,8

0,0

-20,0

-15,0

-10,0

-5,0

0,0

5,0

10,0

2009 2010

Liikevoitto ilman kertaluonteisia eriä Kertaluonteiset erät

Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 11

Home and speciality goods trade

1-6/2010

Operating profit 1-6, M€

Net sales 1-6, M€

• K-citymarket’s sales clearly increased and

new hypermarkets have performed better

than expected

• Asko’s and Kodin Ykkönens’ sales grew

especially in interior decoration products

• Budget Sport achieved excellent sales

performance

• Sunday opening increased sales

especially in the first part of the year

• Profitability improved significantly resulting

from sales growth, higher productivity and

more efficient purchasing

• Investments in the home and speciality

goods trade were €12.8 million (€16.9

million)

677 689 +1.8%

-30.0%

+2.3%

-6,9 7,1-6.9 7.1

7.1

-16.7

9.8

Operating profit excl. non-recurring items Non-recurring items

10.0

5.0

0.0

-5.0

-10.0

-15.0

-20.0

5,64,2

3,9

0,0

0,0

5,0

10,0

2009 2010

Liikevoitto ilman kertaluonteisia eriä Kertaluonteiset erät

0

500

1 000

1 500

2009 2010

Suomi Muut maat

Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 12

Building and home improvement trade

1-6/2010

• Building and home improvement trade

market returned to growth in Finland,

Sweden and Norway. Weak market

situation continues in the Baltic

countries

• Profit for the first part of the year

matched the previous year’s level.

Profit improved over the spring

• Investments were €28.4 million (€46.3

million)

• New building and home improvement

stores were opened in Jyväskylä,

Stockholm, Tula, Kaluga and Minsk

Operating profit 1-6, M€

Net sales 1-6, M€

1,173 1,207 +2.9 %

+0.9 %

+5.1 %

4,2

9,6

Finland

Operating profit excl. non-recurring items Non-recurring items

9.6

4.2

4.25.6

3.9

Other countries

10.0

5.0

0.0

-4,1

20,5

0,9

-10,0

0,0

10,0

20,0

30,0

2009 2010

Liikevoitto ilman kertaluonteisia eriä Kertaluonteiset erät

0

200

400

600

2009 2010

Suomi Muut maat

Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 13

Car and machinery trade 1-6/2010

• VV-Auto’s comparable net sales grew by 17%

• Record level market share of Audi, Volkswagen and Seat at 19.9% (18.4%)

• Konekesko’s net sales growth was dampened by the disposal of agricultural supplies trade in the Baltic countries

• Operating profit was improved by car sales growth and cost reductions

• Previous year’s profit included €9 million in expense provisions on the Baltic agricultural supplies trade

• Investments in the car and machinery trade were €8.1 million (€3.6 million)

Operating profit 1-6, M€

Net sales 1-6, M€

-28.1%

+5.7%

-4,1

21,4

+0.9%529 534

Finland Other countries

Operating profit excl. non-recurring items Non-recurring items

21.4

-4.1

0.9

20.5

-4.1

30.0

20.0

10.0

0.0

-10.0

Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 14

88.4

.63,5

18.8

24.2

0

20

40

60

80

100

120

1-6/2009 1-6/2010

Others Store sites

Group’s investments (M€)

87.7

107.2

63.5

Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 15

Equity ratio, %

06/201006/2009

51.0 51.2

Interest-bearing net liabilities(M€)

Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 16

06/2009 06/2010

Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 17

Performance indicators

1-6/2010 1-6/2009

Net sales, € million 4,237 4,160

Operating profit, € million 100.0 65.9

Operating profit excl. non-recurring items, € million 99.0 39.8

Group’s profit before tax, € million 100.6 56.5

Investments, € million 87.7 107.2

Earnings/share, €, diluted 0.67 0.31

Earnings/share excl. non-recurring items, €,

basic 0.66 0.11

Equity/share, € 20.30 19.36

Equity ratio, % 51.2 51.0

Cash flow from operating activities, € million 135.4 136.3

Cash flow from investing activities, € million -85.7 -19.5

Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 18

Share price trend 12 mo

KESKO B

OMX Helsinki

CAP

07/09 01/10 21.7.2010

Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 19

A share

B share

26.60/share

26.63/share

Market capitalisation 30.6. (M€)

1,904

2,626

Q2 2010 Media and analyst briefing 23.7.2010 ATaPage 20

Future outlookEstimates of the future outlook for the Kesko Group's net sales and operating profit

excluding non-recurring items are given for the 12 months following the reporting period

(7/2010-6/2011) in comparison with the 12-month period preceding the reporting period

(7/2009-6/2010).

The outlook for trends in consumer demand has improved somewhat, especially as a

result of higher consumer confidence and continuously low interest rate levels.

Nevertheless, the trend in economic development continues to involve significant

uncertainties relating to the evolution of total production, tightening taxation and

ramifications of possible disturbances in the financial market.

Reduced grocery prices continue to dampen market growth in terms of euros, although

otherwise the trend in the grocery trade is expected to continue steadily. In the home

and speciality goods trade, the market recovery is expected to continue as a result of

higher consumer confidence. As house building activity increases, the building and

home improvement market is expected to continue strengthening in the Nordic countries

and the decline is expected to ease in the other operating countries. In the car and

machinery trade, new car sales are expected to increase, and the market situation in the

machinery trade is expected to recover slowly.

The Kesko Group's net sales and operating profit excluding non-recurring items are

expected to grow during the next twelve months.

Sivu 21 Q2 2010 Media and analyst briefing 23.7.2010 ATa

Thank you!