September 25, 2024 11:21 GMT
Kesko (KESBV; unrated) Guidance
CONSUMER STAPLES
exp. €300m Green 5.3Y Guidance MS+135-40 vs. FV +122
- Books ~€500m are VERY weak, pricing is not bad though (-20 in from IPT) - it's giving the normal single line grocer discount. Margins are not horrible (particularly for grocery standalone), governance on BS looks fine, business is a bit bloated (you may see it as diversified but the trade and auto divisions are margin dilutive to core and don't seem to overlap much in the operating banner/branding).
- FY guidance is for EBIT to be down -9% and would mark the 2nd year in a row of falling profits.
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