Business year 2009: REWE Group boosts turnover to nearly 51 billion euros

Cologne, 08.06.10

Strengthened competitive position generated by organic growth and acquisitions

• Turnover level of 50 billion euros surpassed for the first time
• Total external turnover in Germany rises by 3.4 per cent to 34.9 billion euros
• Turnover outside Germany increases by 1.1 per cent to 16 billion euros
• Turnover of independent retailers in Germany rises by 3.8 per cent to more than 8.4 billion euros
• Company workforce expands by 2.1 per cent to 326,000
• More than 7,800 new employees added in Germany alone
• REWE’s core group companies grow by 5.7 per cent to 37.7 billion euros
• REWE and toom consumer markets raise turnover by 5.9 per cent to 13.6 billion euros
• PENNY in Germany generates a turnover increase of 9.7 per cent to approx. 7 billion euros
• Performance of specialist stores (ProMarkt, toom BauMarkt, B1) climbs by 2 per cent to 2.4 billion euros
• Revenue of Travel and Tourism Division by 3.1 per cent to 2.8 billion euros
Despite a challenging economic climate, the REWE Group boosted total external turnover by 2.7 per cent in 2009 to reach a record level of 50.9 billion euros.

Growth was dynamic in the highly competitive German market, where the Group increased total external turnover by 3.4 per cent to 34.9 billion euros. Even though Eastern European economies were hit particularly hard by the economic crisis, the REWE Group boosted its total external turnover outside Germany by 1.1 per cent to 16 billion euros.

The REWE Group emerged in a strengthened position from the difficult year of 2009 for retailers. Our bold decisions and far-sighted acquisitions are paying off. The company produced positive results in every relevant key performance indicator,” Alain Caparros, CEO of the REWE Group, said at the company’s annual financial press conference held in Cologne today.

The number of stores supplied in Europe climbed by 731 (5 per cent) to a European total of 15,445. In Germany, the sales network was expanded by 5.7 per cent to 10,893 stores. The number of stores outside Germany rose by 4,552 (3.2 per cent).

The independent retailers of the co-operative REWE Group generated an increase in turnover of 5.4 per cent to 8.8 billion euros in Germany and Austria. On the German market, independent REWE retailers performed well, producing a 3.8 per cent increase in turnover to 8.4 billion euros.

Last year, the REWE Group employed a total of 326,000 people across Europe, 2.1 per cent more than the previous year. In Germany, the workforce increased by 3.7 per cent, or 7,800 people, to 219,000. A total of 107,000 employees works for the REWE Group outside Germany. As a result, the trade and tourism group remains one of Europe’s leading employers. Promotion of young people also plays a major role at the REWE Group. Last year, the REWE Group’s companies and sales lines provided training to 7,300 young people in Germany, about 500 more than the previous year.

In 2009, REWE’s core group companies – excluding at-equity entities and independent retailers – generated a 5.7 per cent increase in turnover to 37.7 billion euros. EBITA climbed to 819 million euros, a rise of 4.7 per cent. As a result of the transfer of B2B activities to the joint venture transGourmet and of the increased investment in the modernisation of the sales network, cash flow decreased by 26.1 per cent to 978 million euros.

“The past few months have demonstrated that the strategy of conservative financing was the correct one. The group has the financial freedom it needs and is well-equipped to face the future as a result,” said Norbert Fiebig, the Group’s CFO and head of the Travel and Tourism Division.

The 3.2 billion euros invested during 2008 was primarily used for the successful acquisitions of Plus (Czech Republic), extra and ADEG stores (Austria). This was the main reason that investments for 2009 fell by 44.2 per cent to 1.8 billion euros.

“Discount” Division
The 3,588 PENNY stores in Germany, Austria, Hungary, Italy, the Czech Republic, Romania and Bulgaria boosted their turnover by 8.1 per cent to 10.3 billion euros. PENNY performed even stronger in Germany. Its 2,385 stores produced a 9.7 per cent increase in turnover to about 7 billion euros. This growth was fuelled by new products, concepts, advertising, expansion and employees. Another highlight of the year was the November 2009 launch of business in Bulgaria with a new 28,000 square-metre central warehouse and 26 stores. Bulgaria is PENNY’s sixth international market and represents a successful continuation of PENNY’s international expansion.

“Full-Range National” Division
Food trading in Germany fell by 1.8 per cent in nominal terms during 2009. As a result of this decrease, the performance of the “Full-Range National” Division (REWE, toom) is that much more pleasing. With a 5.9 per cent increase in turnover to 13.6 billion euros, it was once again the strongest Division in the REWE Group in 2009. The number of the Group’s own stores rose organically to 1,804 locations (+1.1 per cent).

“Full-Range International” Division
The activities of the REWE Group in Austria, Italy, Croatia, the Czech Republic, Slovakia, Russia, Romania, Ukraine and Bulgaria are pooled in REWE International AG. The 2,451 stores (+0.3 per cent) generated turnover of 8.9 billion euros, an increase of 4.2 per cent. In 2009, the 1,117 stores (+0.5 per cent) of BILLA and MERKUR in Austria boosted turnover by 4.4 per cent to 4.4 billion euros. With an increase of 5.9 per cent, the 568 BIPA stores in Austria (+2.0 per cent) generated turnover of 576 million euros. In Bulgaria, Slovakia and the Czech Republic, the REWE Group remains the leader in the supermarket segment.

“Specialist Store” Division
The 392 specialist stores (+ 2.3 per cent) of the REWE Group (toom Baumarkt, B1-Baumarkt, Klee and ProMarkt) boosted turnover in 2009 by 2 per cent to 2.4 billion euros. At toom, favourable weather, the strengthening of the toom brand and major investments in the store network resulted in a 1.9 per cent rise in turnover to 1.8 billion euros. Adjusted for sales space, the increase totaled 2.6 per cent.

ProMarkt, with its 69 stores across Germany (+11), increased turnover by 2.4 per cent to more than 550 million euros in 2009. Two trend-setting developments during the past year were the acquisition of ProMarkt Handels GmbH in Berlin and the online electronics specialist site “myby”.

“B2B” Division
transGourmet Holding S.E., the joint venture set up in 2009 by the partners Coop, Switzerland, and the REWE Group, generated turnover of 5.8 billion euros. Compared with 2008 (6.2 billion euros), this represents a drop of 6.2 per cent. The decrease was primarily caused by developments in Eastern Europe and negative currency effects. transGourmet Holding S.E. remains the No. 2 in cash & carry and delivery wholesale in Europe.

“Travel and Tourism” Division
Despite the general economic crisis, the Travel and Tourism Division of the REWE Group was able to boost revenue by 3.1 per cent to 2.8 billion euros and expand its market leadership in the German and Austria tour-operator market in 2009. While the tour operators increased their revenue by 4 per cent, travel sales were hit particularly hard by the economic situation, resulting in a 10.3 per cent drop in turnover. As a result, their performance mirrored the market’s. Invoiced turnover of the entire Travel and Tourism Division at the REWE Group, a key factor for market comparisons, totalled 4.2 billion euros.

Outlook 2010
The REWE Group has begun the year of 2010 successfully. Turnover of the REWE Group totalled 8.9 billion euros in the first quarter of 2010, a 3.4 per cent increase over the same period last year.

“Despite the uncertainties, the REWE Group is cautiously optimistic about the second half of the year. I believe that we will also be successful in 2010 thanks to our clear customer focus and the high-performance concepts of our supermarkets and discounters,” Caparros said. 

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REWE GROUP-Corporate Communications
Tel.: 0221 - 149-1050
E-Mail: presse(at)rewe-group.com

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