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Kesko in brief

Kesko is a Finnish trading sector pioneer. Kesko’s operations comprise three divisions and it operates in Finland, Sweden, Norway, Estonia, Latvia, Lithuania, Russia and Belarus.

 

 

Kesko and K-retailers form a unified K-Group

Kesko’s divisions
  • Grocery trade
  • Home improvement and speciality goods trade
  • Car trade

Kesko’s headquarters are in Helsinki

 

The K-Group has more than 1,500 stores, which are visited by 1.3 million customers per day

Local K-retailer entrepreneurs are each responsible for their stores’ operations

Kesko operates in eight countries and employs approximately 20,000 people

Key performance indicators
Finances20152014201320122011
Net sales, € million8,6799,0719,3159,6869,460
Operating profit excl. non-recurring items,
€ million
244.5232.6238.8230.0278.9
Profit before tax, € million188145242210282
Earnings per share excl. non-recurring items, basic, €1.701.651.681.471.84
Dividend per share, €2.50*1.501.401.201.20
Return on capital employed excl. non-recurring items, %11.79.99.89.013.1
Return on equity excl. non-recurring items, %8.27.67.76.98.8
Cash flow from operating activities, € million276304414382216
Capital expenditure, € million219194171378425
Equity ratio, %54.754.554.552.553.9
* Proposal to the General Meeting

 

Return on capital employed 11.7% on a steady growth path

Personnel20152014201320122011
Personnel, average18,95519,97619,48919,74718,960
Permanent employees, %91.489.389.889.087.4
Full-time employees, %77.574.271.971.371.5
Salaries, fees and social expenses paid, € million545614611608571
Supervisory positions held by women, Finland, %5154535151
Training days per employee1.11.21.30.91.7
Sickness absences, days per employee10.510.511.211.210.7

 

Nearly 17,000 new jobs for young people aged under 30 in 2014–2015

Environment 2015 2014 2013 2012 2011
Scope 1 and 2 emissions, thousand tonnes CO2e 188 202 191 205 202
Scope 1 and 2 emissions/net sales, tonnes CO2e/€ million 21.6 22.2 20.5 21.2 21.3
Scope 1 and 2 emissions/avg. number of employees, tonnes CO2e/person 9.9 10.1 9.8 10.4 10.5
Specific consumption of electricity, Finland, kWh/gross m2 207 205 209 213 219
Specific consumption of heat energy, Finland, kWh/gross m2 76 79 83 95 90
Waste recovery rate, Finland, % 99 97 95 93 93
Emissions for 2013 and 2014 have been adjusted for improved accuracy since the previous report

 

We cut emissions from transportation thanks to route planning, reverse transportation, two-tier trailers and training in the economical driving style

Supply chain20152014201320122011
Goods, materials and services purchased, € million7,3738,8399,0379,4549,188
Purchases from suppliers in Finland, % of all purchases67.268.368.967.967.5
Direct purchases from high-risk countries, Finnish companies, % of all purchases1.21.51.61.31.8
BSCI audits/year18716210667134
Pirkka Organic products, pcs134116959973
Pirkka Fairtrade products, pcs4044353938

 

 

This new Pirkka Organic product came to retail stores in autumn 2015

The K-Group’s retail sales and store numbers by country

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in action

in action

Description

Pirkka and Gasum recycle together

Biogas produced from K-food stores’ waste is utilised as energy to manufacture Pirkka products. Cooperation between Kesko and Gasum provides K-stores with a new kind of way to use wastage, so we can contribute to turning Finland into a forerunner in bioeconomy and cleantech.

K-food mobile application helps customers in store and at home

The new K-food mobile application that was launched in October 2015 provides personal benefits and store-specific offers plus a smart shopping list. The application makes customers’ daily lives easier in many ways. The application is available for all operating systems.

Little wolves basketball event encouraged children to exercise

A project began at the beginning of 2015 in cooperation between Kesko’s grocery trade and the Finnish Basketball Association to promote physical exercise among children. Thousands of Finnish children took part during the year. Cooperation will continue in 2016.

New services complement shopping experience

Starbucks, Posti and DHL expanded their services to K-food stores in 2015. Appealing services offered by business partners make shopping at K-food stores easier, as many things can be taken care of at the same time.

Stores must take all customers’ needs into account

Can you get around every part of the store in a wheelchair? How does a visually impaired person handle payment at the checkout? Do security guards follow members of the Romany community who shop in stores? These were some of the issues discussed by the consumer panels organised as part of Kesko’s human rights assessment.

Kesko’s own lab monitors the quality of Pirkka and K-Menu products

Kesko’s product research laboratory monitors the quality of groceries sold by K-food stores. High-level research ensures food safety.

K-maatalous Experimental Farm promotes domestic food production

The K-maatalous Experimental Farm plays a significant role in the development of the Finnish food chain. Many new plants have found their way to our agricultural production and dinner tables thanks to the development and research carried out by the experimental farm.

K-rauta Rus supports children’s homes in Russia

K-rauta Russia participates in responsibility work by supporting children’s homes and correctional boarding schools in Russia. During workshops in autumn 2015, employees of K-rauta Russia and children made birdhouses and jewellery boxes together.

K-trainee programme – a view to international trade

”A couple of years ago I couldn’t have imagined that I would be actively participating in developing Kesko’s international business in St. Petersburg,” says K-trainee Leena Fedotov.

Both/and is about more than just the price

Food is not only about price. It is also about quality and experiences. K-retailer entrepreneurship provides strength to local communities and also gives a lot to K-food store customers.

Knowledge of the origins of product ingredients is important

Which part of the world does the product come from? While the question is simple, the answer may be far from that. There are over 2,500 Pirkka products, which contain thousands of ingredients.

Ecotruck enhances efficiency

In early 2015 Keslog, which is responsible for Kesko’s grocery trade transportation, introduced a new Ecotruck, which carries twice as much cargo as an ordinary truck. Everything went according to plan during its first year in operation.

K-rauta Express brings building and home improvement store services close to customer flows

The K-rauta Express concept is based on changes in customer behaviour as a result of urbanisation and smaller family sizes, the growth in online sales, the ageing of the population and the decrease of private motoring in certain customer groups.

Dekostudio displays products to interior decoration and furnishing professionals

Dekostudio is a new meeting place for interior decoration and furnishing professionals.

VV-Auto is an ambitious and innovative brand house

VV-Auto has 1.1 million customer relationships in Finland. Cooperation with one of the world’s largest car groups ensures varied, global opportunities for development. The brands we represent include Audi, SEAT, Volkswagen, Volkswagen commercial vehicles and MAN. Top brands need top professionals.

K-Myllypuro – a completely new kind of store

A completely new kind of K-food store was opened in Myllypuro, Helsinki in the autumn of 2015. K-Myllypuro does not belong to any of the current K-food store chains ─ instead, it is the K-Group’s test store.

Itäkeskus is built together

A social media mayor, a harvest party and an art wall painted by the young are some of the new ways of including local inhabitants in the construction of the new centre in eastern Helsinki.