German Retail Chain REWE Group (owner of Discount Retail Chain Penny) achieved total external sales of 75.3 billion euros (US$90Bn) for the first time in the 2020 financial year, thanks to the successful integration of the Lekkerland Group. Compared to the previous year (62.7 billion euros), this is an exchange rate-adjusted increase of 20.4 percent. The turnover of the REWE Group excluding independent franchise retailers and at-equity companies grew by 23.9% adjusted for exchange rate effects from 55.3 billion to 68.2 billion euros.
“The year 2020 was of course also overshadowed for us in the REWE Group by the consequences of the corona pandemic. We were ultimately able to achieve our self-imposed economic goals because the positive development in our retail business has offset the heavy burdens on our tourism division,” explained Lionel Souque, CEO of the Cologne-based retail and tourism company, on the occasion of the publication of the business figures that have not yet been audited. “I would particularly like to thank the more than 380,000 employees of our company at home and abroad as well as our businesspeople for their excellent performance and their great commitment under the difficult conditions of the Corona crisis. The cohesion in our cooperative has grown further. I'm particularly proud of that. ”The successful integration of the Lekkerland Group has added a new and very promising business area to the REWE Group. "With the Lekkerland Group, we have excellent future prospects in the growing convenience business in Germany and Europe." Souque also stated that the REWE Group is planning to increase its investments again in order to modernize its stores, expand the logistics infrastructure and continuously develop digitization. “After around 1.9 billion euros in 2020, we will increase our investments to 2.3 billion euros in the current financial year. We are planning to invest this amount in the following years 2022 and 2023."
Under the umbrella of the cooperative group, the independent grocery trade again developed very strongly. The REWE merchants in Germany achieved an increase in sales of 20.5% compared to the previous year.
The number of employees in Germany and other European countries rose by around 22,000 to around 384,000, 282,000 in Germany and 102,000 internationally. This corresponds to an increase of 6 percent. The number of trainees at REWE Group in Germany (as of September 30, 2020) increased by 388 (+4.1 percent) to 9,762, of which 4,409 trainees started their training in 2020.
REWE Group: sales growth and decline in consolidated earnings
The turnover of the REWE Group from continuing operations increased by 23.9% adjusted for exchange rate effects from 55.3 billion to 68.2 billion euros. Sales in Germany rose by 24.4 percent to 46.6 billion euros; abroad adjusted for exchange rate effects by 22.7% to 21.6 billion euros.
The operating result EBITA rose from 910 million euros in 2019 to 1.22 billion euros.
EAT consolidated earnings fell from EUR 507 million to EUR 415 million. This decline is due to a significantly higher tax burden, which is due, among other things, to the DER Touristik Group losses that cannot be offset.
The REWE Group's EBITDA rose from EUR 4.1 billion in the previous year to EUR 4.4 billion.
Investments in property, plant and equipment and intangible assets totaled 1.9 billion euros, around 140 million euros above the investments made in 2019.
Equity rose from 7.3 billion to 7.6 billion euros. The net financial debt without finance leasing was 1.7 billion euros as of December 31, 2020.
Sales development in the business fields and divisions of the REWE Group
In the national full range with retail sales in REWE branches and wholesale sales by merchants and other partners, sales rose by 12.3 percent from 23.6 billion euros to 26.5 billion euros.
In the international full range, REWE Group sold its stores in Ukraine in the 2020 financial year and is now present with supermarket and drugstore activities in Austria, the Czech Republic, Slovakia, Russia, Bulgaria, Croatia and Lithuania. Sales rose by 2.4 percent from 10.1 billion euros (currency-adjusted 3.6 percent) to 10.4 billion euros.
The full range of Austria with BILLA, BIPA, MERKUR and ADEG generated sales growth of 4.3% to 6.8 billion euros.
In the Discount Nation, PENNY Germany achieved a sales increase of 5.4% and thus for the first time 8 billion euros in external sales.
PENNY achieved even more dynamic growth in Discount International. In Italy, Austria, Hungary, Romania and the Czech Republic, PENNY increased sales by 8.3% from 5.1 billion euros (currency-adjusted by 11%) to 5.5 billion euros.
In the new Convenience business area with the national and international activities of the Lekkerland Group in Germany, the Netherlands, Belgium and Spain, total external sales of 13.1 billion euros were achieved. This figure also includes the REWE To Go segment for the first time.
In the DIY store segment, including toom DIY store, sales rose by 19.9% from 2.2 billion euros to 2.7 billion euros.
The decline in consolidated sales in the Tourism division was serious. There was a decrease of 5 billion euros by 73.9 percent to 1.3 billion euros.
See here for more: https://www.rewe-group.com/en/press-and-media/newsroom/press-releases/rewe-group-turnover-tops-75-billion-euros-for-the-first-time/?mkt_tok=ODk3LU1CQy0yMDcAAAF8jgZf0DR8cr6Bs2xX3AojdHGYq7SuExCYKsDLL3wC89_q1K9kw4DTFekH05KUYVgcZYPqLQmncHjhZCcIg0pjmcdTYQ_LpFbgTrLWmHTc