Kesko Corporation's Annual General Meeting on 4 April 2011: President and CEO Matti Halmesmäki announces Kesko's plan for major expansion of operations in Russia
KESKO CORPORATION STOCK EXCHANGE RELEASE 04.04.2011 AT 13.00 1(2)
Kesko Corporation's Annual General Meeting is taking place today, Monday 4 April 2011, in Helsinki. In his review, President and CEO Matti Halmesmäki announces that Kesko Food will open four large-scale grocery stores in Russia in 2012-2013, two of which in the St. Petersburg area and two in the Moscow area.
"In line with Kesko's strategy, Kesko and the K-Group want to maintain their position as the largest trading group in Finland, and to grow faster than the market in all divisions. Kesko will expand the operations of its selected divisions in the Nordic and Baltic countries, and especially in the large and fast growing Russian market," says Kesko's President and CEO Matti Halmesmäki in his presentation at the General Meeting.
Kesko Food's objective is to achieve €500 million in net sales and a positive operating result in Russia by 2015. The capital expenditure is estimated at €300 million in 2011-2015. At the same time with new construction, Kesko Food will continue to explore business acquisition opportunities in both St. Petersburg and Moscow.
Rautakesko operates 12 K-rauta stores in Russia, nine of which are located in St. Petersburg and three in the nearby areas of Moscow. In 2010, net sales from Russia were €204 million, showing a 20.5% increase on the previous year. At the end of the year, the personnel numbered 1,661.
Three K-rauta stores are being built, one of which will open in St. Petersburg in April and two in Moscow in late 2011. In addition, ten new K-rauta stores are planned to be opened in 2012-2015. Rautakesko's objective is to achieve €800 million in net sales by the end of 2015. The capital expenditure is estimated at some €300 million.
Kesko Food's and Rautakesko's store site cooperation generates synergy benefits.
In the sports trade, expansion into the Baltic and Russian markets is explored in cooperation with the international Intersport chain.
President and CEO Matti Halmesmäki, Kesko Corporation, tel. +358 1053 22201
President Terho Kalliokoski, Kesko Food Ltd, tel. +358 1053 22204
President Jari Lind, Rautakesko Ltd, tel. +358 1053 20200
Senior Vice President, Corporate Communications and Responsibility
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