Kesko cuts profit forecast on construction market weakness

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.

The company now expects its 2025 comparable operating profit to be between 640 million and 700 million euros, narrowing the range from a previous forecast of 640 million to 740 million euros.

Kesko said the updated guidance is based on a delayed turnaround in building and technical trade, particularly in new building construction across all its operating countries.

"Gradual recovery in the construction cycle has continued, but the pace has been slower than previously anticipated in all Kesko operating countries, especially in new building construction," President and CEO Jorma Rauhala said.

For the second quarter ended June 30, the company's comparable operating profit was 176.7 million euros, slightly down from 178.3 million euros a year earlier.

Group net sales for the period rose 3.1% to 3.19 billion euros.

The building and technical trade division's comparable operating profit was 51 million euros in the quarter, with recent acquisitions in Denmark helping to support its net sales, the company said.

In contrast, the car trade division saw net sales and profit increase notably, driven by strong performance in new car sales.

The grocery trade division, Kesko's largest segment, reported a comparable operating profit of 111 million euros.

The company said a price investment program launched in January has helped increase customer traffic at its grocery stores.

For the first six months of 2025, Kesko's comparable operating profit was 272.3 million euros, down from 277.7 million euros in the same period last year, on net sales of 6.02 billion euros.