Finnish retailer Kesko Oyj said its July sales rose 7.9% to 1.05 billion euros, driven by a boom in its car trade division that offset continued weakness in its construction-related business.
Sales in the car trade division surged 34.1% to 120.9 million euros, with the company reporting significant growth in both new and used car sales.
The strong performance in automotives helped compensate for a challenging building and technical trade market, where comparable sales, which strip out the impact of acquisitions, were down 0.1%.
While recent acquisitions in Denmark lifted the division's reported sales by 6.7%, comparable sales fell in Finland, Sweden, and Norway, according to the company.
The figures underscore the trend that led Kesko to recently lower its full-year profit guidance, citing a slower-than-anticipated recovery in construction.
"In car trade, sales increased significantly in both new and used cars," President and CEO Jorma Rauhala said in a statement.
The company's largest segment, grocery trade, posted a 4.3% sales increase to 562.5 million euros.
More from this issuer
Related coverage
A group of retailer associations has increased its combined voting power in Finnish retailer Kesko Oyj to just over 20%, the company disclosed in a regulatory filing on Friday.
Finnish retailer Kesko Oyj reported a 6.9% rise in October sales to 1.2 billion euros, with growth across all its business divisions.
Finnish retailer Kesko Oyj narrowed its full-year profit forecast on Thursday, citing a persistent slowdown in the construction market that is weighing on its building and technical trade division.
Finnish retailer Kesko Oyj on Tuesday lowered its full-year profit guidance, citing a slower-than-expected recovery in the construction market which is weighing on its building and technical trade division.