Positive revenue growth, results remain high –REWE Group successfully defies subdued consumer sentiment and poor economic forecast in the 2024 financial year

Cologne. The REWE Group, one of Europe’s largest trade and tourism groups, can look back on a successful 2024 financial year despite persistently volatile geopolitical and economic conditions. Total external revenue rose by +4.6% to €96 billion, while EBITA remained high at €2 billion. Net income for the year rose from €736.2 million to €1 billion, mainly due to a one-off effect.

 Strengthening business locations in Germany and Europe: The REWE Group is investing €16 billion in the future of purchasing up to 2028. There is a targeted focus on digitalisation, locations and infrastructure. The company hired 46,000 new employees in Germany in 2024, including 5,000 trainees. In 2024, REWE alone attracted 7 million more customers per month than in 2023.  

The REWE Group is investing €16 billion up to 2028. In all REWE Group stores, the focus of investment is on driving digitalisation, expanding and modernising stores and infrastructure (IT/logistics) as well as owner-occupied real estate properties. While other sectors of the economy are cutting back on investments or even closing sites, we are strengthening Germany and Europe as business locations with investments that are themselves very high for the industry. We promote national value creation and remain a strong, reliable economic engine even in difficult times, said REWE Group CEO Lionel Souque, highlighting the positive effects of the investment plan. In addition, the REWE Group created secure jobs with future prospects, especially in regions where other industries have already quit; In Germany alone, we hired 46,000 new employees in 2024 and are offering secure apprenticeships to a total of 10,600 trainees.

Resilient positioning in economically challenging times

Our broad, resilient positioning as an international group of companies with retail, travel and tourism, and convenience is a key factor for our long-term success – especially in economically challenging times, such as those we experienced in 2024. All our business segments made their contribution to revenue and results. As a company, we are in a consistently healthy position, said REWE Group CFO Telerik Schischmanow, expressing his satisfaction with business growth in 2024.

The operating result (EBITA) was €2 billion in 2024 (+8.9% up on 2023), remaining high. Consolidated net profit rose from €736.2 million to €1 billion – the magnitude of which is due mainly to the one-off effect of a tax refund and lower write-downs on investments in associates and joint ventures. Sustainable growth and long-term competitiveness are embedded in our DNA as a cooperative. Keeping these targets in our sights, we continued our investment offensive in 2024 with one of the highest investment volumes in European retail. As a Group, we are well positioned and very solidly financed for our investments and further growth, added Schischmanow on annual profit, equity (+10.2% to around €11 billion/2023: €10 billion) and net debt (2024: €17.1 billion). To a large extent, this also includes future rent payments, which are considered debts in balance sheet terms, not to be equated with the financial liabilities without leasing (2024: €3.8 billion).

The 2024 financial year was anything but a foregone conclusion in view of the uncertain overall situation across the EU, subdued consumer sentiment and the trend towards negative economic development. It is therefore not a given that we are able to say that 2024 was a good year for us, emphasised Lionel Souque, CEO of the REWE Group. This success is due to commitment of all our colleagues, because all business segments have contributed to this positive growth. After a wild few years, inflation has lost momentum, but the effects of economic uncertainty and high price sensitivity among consumers are still being felt in all markets the REWE Group operates in.

Offers, entry-level products and private labels continued to be on consumers’ shopping lists. In Germany, for example, private labels recorded a higher revenue increase of +7.5% (REWE) and +3.0% (PENNY) than the brand segment. Meanwhile, the demand for organic products, plant-based foods and local products also increased. Customers are aware of price sensitivity as well as the desire for more sustainable products; a trend that REWE and PENNY anticipated with targeted product range expansions.

Tangible added value impresses new and existing customers

In addition to the ongoing enhancement of product ranges and an improved shopping experience, REWE and PENNY will increasingly focus on personalised and digital solutions in 2024 to offer their customers tangible added value. One example is the REWE app, the REWE store in your handbag or trouser pocket, which offers a comprehensive range of services. With this focus, we gained more new customers in 2024 and impressed them with our offers and services. REWE alone attracted 7 million more customers per month than in 2023,” Souque explained. The digital reward schemes introduced by REWE and PENNY at the end of 2024 exceeded all expectations in the first few weeks alone.

Individualisation, combined with unique customer proximity and orientation, remains the recipe for success of the now 1,573 independent REWE retailers, who achieved a revenue increase of +7.0% to €19.0 billion in 2024. Year on year, our merchants make an essential contribution to our success. That is why we further strengthened and expanded our retailer model once again in 2024,” said the REWE Group CEO.

Travel and Tourism showing record growth

The DERTOUR Group recorded a very strong year. With an increase of +21.7%, invoiced revenue rose to €8.7 billion; testimony to the Europeans’ unbridled desire to travel in the past financial year. DERTOUR Group tour operator brands managed to equal the number of guests before Covid, and in Eastern Europe numbers were even higher. “There are two clear trends here – people are deliberately taking a break from everyday life in view of the almost daily bad news, while the increasing focus on experiences instead of material goods is driving consumers’ desire to travel. We are addressing this with the right offers and the right teams, resulting in above-average performance for the DERTOUR Group,” said Lionel Souque, commenting on this strong growth.