Charter Communications earnings missed by $0.40, revenue was in line with estimates
Investing.com -- Kesko (HE:KESKOB) shares fell more than 4% on Tuesday after the company lowered its full-year profit guidance, citing a slower-than-anticipated turnaround in construction and the absence of earnings from joint venture Kesko Senukai.
The Finnish retail group now expects its 2025 comparable operating profit to range between €640 million and €700 million, trimming the upper end from its earlier estimate of up to €740 million.
The revised forecast reflects weaker-than-expected momentum in building and technical trade and includes less than €5 million in costs related to recent acquisitions in Denmark.
Second-quarter net sales rose 3.1% to €3.19 billion from €3.09 billion a year earlier, while comparable sales increased 1.3%.
Operating profit climbed to €177.9 million from €159.2 million. Comparable operating profit dipped to €176.7 million from €178.3 million, affected by the missing €6.3 million contribution from Kesko Senukai, which did not report its financials for the period.
Earnings per share for the quarter rose to €0.29 from €0.26. Comparable EPS slipped to €0.29 from €0.30. Operating cash flow improved to €323.9 million from €309.0 million.
For the first half of 2025, net sales increased 2.8% to €6.02 billion, up from €5.85 billion in the same period last year.
Comparable operating profit fell to €272.3 million from €277.7 million, while reported operating profit rose to €267.2 million from €256.4 million.
Comparable EPS declined to €0.42 from €0.46. Operating cash flow for the half-year dropped to €299.5 million from €421.6 million.
In the grocery trade division, Q2 net sales totaled €1.61 billion, with comparable operating profit at €111 million.
Store chain operations improved, while Kespro and K-Citymarket’s non-food trade declined. Online grocery sales rose 10.1%, while foodservice sales fell 0.7%. Grocery price inflation was 2.3%.
The building and technical trade division posted net sales of €1.24 billion and comparable operating profit of €51 million.
Excluding Kesko Senukai’s contribution, profitability improved. Recovery in construction remained gradual across all markets, particularly in new building construction.
In the car trade division, net sales rose to €352 million, with comparable operating profit at €22 million. Growth in new and used car sales supported the performance, although service sales declined.
Kesko maintained that grocery and car trade divisions are expected to remain stable, while the building and technical trade unit may improve modestly in profitability.
The company cited consumer confidence, investment appetite, and geopolitical risks as key uncertainties.