April 14 - According to preliminary information, the Kesko Group's operating profit excluding non-recurring items from continuing operations for the first quarter of 2008 is Euro 37 million ( Euro 58 million). The operating profit excluding non-recurring items for January-June 2008 is expected to remain at a lower level compared with the corresponding period of the previous year.
In its financial statements release published on 5 February 2008, Kesko expected the operating profit excluding non-recurring items for January-June 2008 to remain at a level slightly lower than in the corresponding period of the previous year. The first half-year operating profit excluding non-recurring items failing to meet the guidance is due to the gross profit remaining smaller than expected. In addition to the smaller gross margin, this is also attributable to changes in sales structure.
The fact that the January-March 2008 operating profit excluding non-recurring items remained smaller than in the previous year is due to the profit developments of Kesko Food, Rautakesko and Indoor Group. In addition to the gross profit development, this was affected by the expansion and refurbishment of the store site network.
The first quarter has the least significance with respect to its contribution to the Group’s net sales and profit. In 2007, the first quarter operating profit excluding non-recurring items was significantly bigger than in the previous years.