WE ARE
successful & transparent

Report by the
Management Board

The REWE Group successfully concluded the 2021 business year with a strong revenue increase of around 2 billion euros, again delivering evidence of its performance strength in the challenging environment caused by the coronavirus pandemic. Total external revenue from continuing operations rose by 2.5 per cent from 74.6 billion euros to 76.5 billion euros.
Group photo of REWE Group’s Management Board with Sören Hartmann, Jan Kunath, Lionel Souque (CEO) and Dr Christian Mielsch (from left)
Sören Hartmann, Jan Kunath, Lionel Souque (CEO) and Dr Christian Mielsch (from left to right)
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REWE GROUP

Strong economic development in Germany and abroad

We are very satisfied with the strong economic development of our retail and tourism company in Germany and abroad. Unfortunately, the past year was also impacted by the many problems caused by the coronavirus pandemic. Our Travel and Tourism division again suffered, and the lockdown at the start of 2021 was also not without negative effects on the revenue of our DIY Stores division. It is therefore all the more gratifying that we have not only sustained, but in some cases also improved on the extremely strong revenues recorded by food retail in Germany and our European markets in 2020. This was not a foregone conclusion when planning for the 2021 business year. We can therefore be all the more pleased that we have exceeded our planned budget. We are and remain on a dynamic course of profitable growth. We would like to very sincerely thank our 380,000 employees in Germany and abroad who are the key to our group’s success and have once more delivered an outstanding performance.

The business of REWE independent merchants in Germany again showed above-average positive development, posting a revenue increase of 4.8 per cent in the past business year following growth of 20.5 per cent in 2020.

In the second year of the coronavirus pandemic, we have again proved that our business model in Germany and abroad is very robust and that we are continuing to grow organically despite the many challenges. Among other things, the very positive performance of the Lekkerland convenience business was impressive. This performance was especially remarkable in light of the limitations on mobility imposed by the coronavirus pandemic. At the same time, we are working nationally and internationally on the continuous modernisation of our business, new business models and the extensive digitalisation of our company. Examples last year include the switch of MERKUR to BILLA PLUS, the roll-out of the PENNY market hall concept, the many tests of innovations such as the first REWE Pick & Go market and the new generation of Green Building markets, the strategic investment in flink and the investments by our DER Touristik Group in Aldiana and DSR Hotels.

REWE Combine

Growth in sales and earnings

The revenue of the REWE Group – not including independent retail and at-equity entities – from continuing operations rose by 2.5 per cent (2.4 per cent after exchange rate adjustment) from 67.7 billion euros to 69.4 billion euros. The REWE Group in Germany grew by 1.2 per cent to 47.2 billion euros and internationally by 5.5 per cent (5.2 per cent after exchange rate adjustment) to 22.2 billion euros.

Operating EBITA grew from 1.22 billion euros in 2020 to 1.49 billion euros.

Consolidated EAT climbed from 415 million euros to 756 million euros.

EBITDA of the REWE Group amounted to 4.4 billion euros after 4.3 billion euros in 2020.

Investment in tangible and intangible assets was 2.3 billion euros, around 400 million euros more than in the previous business year. The REWE Group is planning investments of 2.3 billion euros in the current year.

Sales performance in business segments

In the Retail Germany business segment, which includes the divisions of REWE, PENNY Germany and Retail Germany Central Businesses, revenue totalled 35.0 billion euros. Beside the domestic real estate businesses, the production and sales of baked goods under the Glocken Bäckerei brand and the production of meat and sausage products under the Wilhelm Brandenburg brand are also part of Retail Germany.

The Supermarket business segment in Germany achieved a revenue increase of 0.9 per cent to 26.7 billion euros. This included the retail sales of the REWE branches and wholesale revenue with merchants and other partners.

In Discount National, PENNY in Germany achieved revenues of 8 billion euros in 2021, on a par with the previous year.

The Retail International business segment comprises the business segments International Full-Range Stores and International Discount Stores. The Retail International business segment achieved revenue  of 15.7 billion euros. This corresponds to a revenue increase of 2.3 per cent (2 per cent after exchange rate adjustment).

In the International Supermarket business segment, BILLA in Russia was divested in the past business year. The supermarket and drug store activities in Austria, the Czech Republic, Slovakia, Bulgaria, Croatia and Lithuania were retained. Revenue increased by a total of 2.6 per cent (2.2 per cent after exchange rate adjustment) from 9.8 billion euros to 10.1 billion euros. In the supermarket store sector in Austria with BILLA, BIPA and ADEG, revenue rose by 2.3 per cent to 7.0 billion euros. In the CEE supermarket store sector, revenue grew by 3.2 per cent (2 per cent after exchange rate adjustment) to 3.1 billion euros.

In Discount International, PENNY achieved an overall revenue increase of 1.8 per cent (1.6 per cent after exchange rate adjustment) to 5.6 billion euros in Italy, Austria, Hungary, Romania and the Czech Republic.

The revenue in the Convenience business segment with the national and international business of the Lekkerland Group grew by 4.4 per cent from 13.1 billion euros to 13.7 billion euros.

Compared with the very strong previous year, revenue in the DIY Store business segment including toom Baumarkt DIY stores decreased by 11.5 per cent from 2.7 billion euros to 2.4 billion euros. Nonetheless, revenue was still 6.9 per cent higher than the level generated in the pre-crisis year of 2019.

By contrast, following the drop in 2020, revenue in the Travel and Tourism business segment increased by 57.5 per cent in the past fiscal year from 1.3 billion euros to 2 billion euros. It thus achieved 41 per cent of the revenue in the 2019 business year prior to the coronavirus pandemic.