Germany's REWE Group has posted 20.4% year-on-year growth in adjusted turnover to €75.3 billion in its full financial year 2020, driven by the successful integration of the Lekkerland Group.
Excluding independent retailers and at-equity companies, the company's adjusted turnover grew by 23.9% to €68.2 billion, from €55.3 billion in 2019.
The company's turnover in Germany rose by 24.4% to €46.6 billion, while it registered 22.7% growth to €21.6 billion in overseas markets.
EBITDA increased to €4.4 billion in 2020, from €4.1 billion in the previous financial year.
Lionel Souque, CEO of REWE Group, said, "The year 2020 was of course overshadowed by the consequences of the Corona pandemic for us at REWE Group as well.
"We were ultimately able to achieve the economic goals we had set ourselves because the positive development in our trading business offset the heavy burdens in our travel and tourism division."
Divisional Performance
In Germany, the retail turnover of the group rose by 12.3% to €26.5 billion from €23.6 billion.
Its international division saw turnover growth of 2.4% to €10.4 billion, from €10.1 billion in 2019.
In 2020, REWE Group divested its stores in Ukraine and is now present with supermarket and drugstore chains in Austria, the Czech Republic, Slovakia, Russia, Bulgaria, Croatia and Lithuania.
In Austria, the company generated a turnover of €6.8 billion, up 4.3% year-on-year through its Billa, Bipa, Merkur and Adeg banners.
Discount chain Penny achieved 5.4% growth in turnover in Germany, to €8 billion.
Its international arm, operating in Italy, Austria, Hungary, Romania and Czechia, generated a turnover of €5.5 billion, up 8.3 % year-on-year.
The retailer's new convenience business segment, including Lekkerland Group's operations in Germany, the Netherlands, Belgium and Spain, generated sales worth €13.1 billion.
Souque added that the successful integration of Lekkerland had added a "new and very promising business" area to the REWE Group. With the Lekkerland Group, we have excellent prospects in the growing convenience business in Germany and Europe."
Other Businesses
The company's DIY segment, which also includes toom Baumarkt, saw turnover increase by 19.9% to €2.7 billion, from €2.2 billion in 2019.
The company's travel and tourism business division saw a 73.9% decline in consolidated turnover to €1.3 billion from €5 billion in the previous financial year.
Investment Plans
REWE Group added that it plans to increase its investments towards store modernisation, expanding logistics infrastructure and digitalisation.
"After around €1.9 billion in 2020, we will increase our investments to €2.3 billion in the current business year. We also plan to invest this amount in the subsequent years 2022 and 2023," Souque explained.
© 2021 European Supermarket Magazine. Article by Dayeeta Das. For more Retail news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.
