Kesko Oyj — Earnings Release 2021

Apr 15, 2021

Kesko Corporation issues a positive profit warning and provides preliminary information on its first-quarter net sales and comparable operating profit

Kesko Corporation issues a positive profit warning and provides preliminary information on its first-quarter net sales and comparable operating profit

Kesko raises its guidance for its comparable operating profit in 2021. The
company now estimates that its comparable operating profit in 2021 will be in
the range of €570-670 million. Before, the company estimated that the comparable
operating profit would be in the range of €520-620 million. The guidance upgrade
is based on better-than-anticipated sales development in all divisions and a
more positive outlook for the remainder of the year. The illustrative comparable
operating profit in 2020 was €554 million.

Kesko’s net sales for the first quarter of 2021 totalled approximately €2,539
million and its comparable operating profit approximately €116 million. The
illustrative net sales for the first quarter of 2020 totalled €2,356 million and
the illustrative comparable operating profit €64.6 million.

In the first quarter, net sales and comparable operating profit grew in all
divisions. The figures are based on preliminary unaudited information. Kesko
will publish its first-quarter interim report on 28 April 2021.

Guidance upgrade rationale

Retail sales have continued strong in the grocery trade, while the foodservice
business has remained profitable despite the difficult market situation. In the
building and technical trade, growth has continued better than anticipated in
both B2B and B2C trade. Car trade has also grown compared to last year. At the
same time, Kesko has managed to further improve cost efficiency. Expectations
for the grocery trade and building and technical trade regarding the remainder
of the year are more positive than before.

It is still difficult to anticipate the impacts of the Covid-19 pandemic, and
consequently the range for the 2021 comparable operating profit guidance remains
wide.

The previous outlook and profit guidance for 2021 issued by the company on 3
February 2021 in connection with the financial statements release:

”OUTLOOK AND GUIDANCE FOR 2021

Kesko Group’s outlook is given for the year 2021, in comparison with the year
2020.

Kesko estimates that its comparable operating profit in 2021 will be in the
range of €520-620 million. The illustrative comparable operating profit in 2020
was €553.6 million.

The range for Kesko Group’s 2021 profit guidance is wide due to the
uncertainties related to the Covid-19 pandemic. The pandemic situation and
progress with vaccinations have a significant impact on the overall economy,
consumer behaviour and trading sector demand in Kesko’s operating countries.
During the pandemic, household consumption has focused on domestic purchases,
which is expected to have a positive impact on some of Kesko’s businesses also
in 2021.

Overall, the outlook for Kesko's business in 2021 is positive. We anticipate
moderate growth in Finnish grocery trade. Recovery in the foodservice business
largely depends on the pandemic situation. Renovation building is expected to
grow in the Northern European construction market. In housing construction, new
construction volumes are expected to decrease overall, but to remain stable in
the construction of small housing and vacation homes. The Finnish car trade
market is expected to grow in 2021.”

Further information is available from Jukka Erlund, Executive Vice President,
Chief Financial Officer, tel. +358 105 322 113, Eva Kaukinen, Vice President,
Group Controller, tel. +358 105 322 338, and Hanna Jaakkola, Vice President,
Investor Relations, tel. +358 105 323 540.

Kesko Corporation

DISTRIBUTION

Nasdaq Helsinki Ltd
Main news media
www.kesko.fi

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