Here are Kesko’s problem markets

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Anttila’s losses inhibit Kesko’s profit. The first half reported a profit of EUR 56.3 million compared to 96.3 MEUR last year. But the finnish giant has problems in several markets.

The Group’s net sales for January-June was 4 499 MEUR, which is o change of -1.8%.
In terms of local currencies, net sales were at the previous year’s level. Foreign currency net sales actually increased in foreign operations by 12.4%.
The Kesko Group’s international operations accounted for 18.0% (17.1%) of net sales.
Net sales increased in the building and home improvement trade and in the car trade and declined in the food trade and in the home and speciality goods trade.
In Finland, net sales decreased by 2.8% and in the other countries, net sales increased by 3.4%.
In the other countries, net sales performance in euros was impacted by the weakening of the exchange rates of the Russian rouble, the Norwegian krone and the Swedish krona.

Profitability was weakened by the decreased sales of the home and speciality goods trade and especially by Anttila’s loss-making operations.
Profit performance was positively impacted by the increase of sales in the building and home improvement trade and the enhancement measures implemented in all operations.

A look at the figures reveals a decrease in net sales in home and speciality goods in all chains. Intersport in Finland and Russia is down 10,5 and 21,9 percent and Musta Pörssi has lost 37,2 percent of its sales compared to last year. Also Kenkäkesko (-7,5 %) and Indoor (-3,0) contributes to the decrease. Intersport Russia and Musta Pörssi has gone through network changes.
The biggest sales of of home and speciality goods is found in K-citymarkets (-6,1 percent) and Anttila (-16,1 percent).

In building and improvement K-Rauta/Senukai/OMA in the Baltics and Belarus is up with big numbers. Also is Rautakesko in Finland up 1,6 percent. Rautakesko is half of the segment.
But Byggmakker in Norway (-7,5%) and K-Rauta in Sweden continues to decrease.