EUROPE: Select Retailer Q1 Results (Dixy, Kesko)

The Dixy and Kesko groups have separately announced their results for their fiscal first quarters.

In Finland, Kesko saw its sales surge up 29% to €2.6bn, although they were up a more modest 2.4% on an organic basis.  Underlying operating profit was down 11.4% to €28.7m, while underlying pre-tax profit was down 2.6% to €33.6m.

The group’s Grocery operations saw sales grow by 13.6% (+0.1% organic), helped by the ongoing store revamps.  Meanwhile, the DIY business reported a 59.9% surge in sales (+5.9% organic), boosted by the integration of banners and the expansion of its online offer.

Click here for detailed results

In Russia, the Dixy Group saw its revenue drop by 6% to 70bn roubles, while like-for-like sales were down 9.8% on the back of weaker store traffic and average ticket spend. It was hurt by a 8.2% drop in revenue at its DIXY division, which offset a 0.7% increase at Victoria stores, and a 8% increase at the Megamart banner.

The country’s fifth-largest grocer opened 16 new outlets but also shut down 89 non-performing stores, as part of its strategy of “bringing more efficiency in operations”.

Click here for detailed results