Income Statement Disclosures
Revenue increased year-on-year by a total of 8.3 per cent.
|in million €||2017||2016|
|Travel and Tourism||4,649.6||4,576.4|
|National Specialist Stores||2,130.8||2,088.5|
Virtually all business segments recorded increases in revenue.
Retail Germany recorded an 11.9 per cent increase in revenue. The positive revenue trend was supported by the development of REWE's own stores and the Penny stores, as well as by wholesale activities. In addition, the stores of the Supermärkte Nord companies acquired in the previous year and REWE Dortmund SE & Co. KG, Dortmund, which was fully consolidated for the first time as at 1 September 2017, also made a material contribution to the revenue trend, as well as reclassifications from the Other business segment, to a smaller extent (see corresponding section of this report).
Adjusted for currency effects, the Retail International business segment posted revenue growth in all countries, which amounted to 4.1 per cent overall (5.1 per cent including currency translation effects). The increase in revenue was due primarily to the Full-Range stores segment in Central and Eastern Europe. Particularly high revenue increases were generated in the Czech Republic, Russia and Slovakia, which were due mainly to the positive performance of the existing stores and to expansion activities. The Austrian Full-Range Stores segment reported a continued positive revenue trend, which was attributable mainly to food retail. Penny International's revenue also made a contribution to this positive development: this was caused by the revenue trend in the Czech Republic and Hungary in particular.
The Travel and Tourism business segment closed the year with a revenue increase of 1.6 per cent. The increases in revenue in Northern and Eastern Europe and the target destination agencies were offset by declining revenue in Central Europe. Overall, the recovery by the destinations Egypt and Tunisia and the high demand for travel to Greece had a positive effect on the revenue trend.
In the National Specialist Stores business segment, revenue increased by 2.0 per cent. The increase in revenue at DIY stores was attributable mainly to the positive performance by the retail stores. Expansion activities as well as existing stores contributed to this growth.
The reported decline in the Other business segment amounting to 0.4 per cent was due to a consolidation effect: prior to the inclusion of REWE Dortmund SE & Co. KG on 1 September 2017, revenue from the food wholesale business of REWE DORTMUND Großhandel eG, Dortmund, was considered external revenue. Once the company was consolidated, the revenue was classified as internal revenue generated in the Retail Germany business segment to which REWE Dortmund SE & Co. KG is allocated. This revenue is netted in the course of consolidation. However, the actual increase in revenue amounts to 5.2 per cent. Positive revenue development was generated above all by the Eurogroup companies, which were fully consolidated for the first time in the previous year, and REWE's digital business.