Finland: S Group and Kesko H1 results

Date : 16 July 2018

Finland-based S Group said net sales in H1 2018 rose 2.7% to €5.61 bn. The cooperative said that the pace of sales growth had been driven by its supermarkets and traffic and food shop divisions. S Group said its ecommerce channel had grown sales strongly

S Group gaining market share

As part of the results announcement S Group said it had enjoyed growth ahead of the wider grocery market. Grocery sales rose 5.8% to €3.56 bn, with S Group’s chief executive, Taavi Heikkilä, saying: “Our total sales continued to grow steadily during the first part of the year. Our performance benefited from the warm weather of early summer, which has driven footfall amongst our shoppers.”.

Good growth across grocery-focused channels

By channel, S Group said supermarkets had seen sales rise 3.7% to €3.958 bn (with the figure including its stores in Estonia and Russia), while its service station stores and fuel sales had increased by 3.8% to €821.9m.

Although it did not break out a specific revenue figure for the channel, the cooperative said sales through its ecommerce store had grown by 30% year-on-year. Discussing the channel’s growth, Heikkilä said “The ease of buying food through e-commerce is appealing to our customers more and more.

Kesko H1: +1.1% to €2.6 bn

Elsewhere, competitor Kesko has also released its first half results, reporting that grocery sales excluding VAT increased by 1.1% to €2.6bn, with like-for-like performance increasing by 4.8%. Performance was partly driven by inflation, with the latest CPI data showing an increase of 1.2% in Finland in June, up from 1.0% in May.

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