Rewe reports solid FY growth | Progresiv
The Rewe Group has reported a solid rise in full-year revenue, which it said was helped by both organic growth and by acquisitions. For 2017, revenue grew by 6.7% to 57.8 billion euros, with revenue in Germany up 7.1% and International revenue rising by 5.7%. The Rewe Combine saw its revenue increase by 8.3% to 49.4 billion euros, although this was up 4.4% on an organic basis. Adjusted EBITDA for the Combine grew by 7.2% to 1.64 billion euros. 
Domestic Full-Range Stores reported a 15.4% jump in revenue to 21.1 billion euros (+5.8% organic basis), helped by “further improved price positioning, the strengthening of regional and local products, convenience and organic products in the range as well as store brands.”
International Full-Range Stores saw revenue grow by 4.9% to 8.9 billion euros (+3.8% constant-currency basis), driven by growth in the CEE countries, where the Billa banner reported a 14.5% jump to 2.6 billion euros. The supermarkets in Austria also recorded a 1.9% rise, although results were partially pulled back by a 4.7% drop at the Bipa drugstore banner.
Discounter stores in Germany saw revenue rise by 2.5% to 7.4 billion euros, helped by the expansion of the Penny banner, while internationally, the chain saw revenue grow by 5.4% to 4.5 billion euros.
Finally, the specialist stores – toom Baumarkt DIY and B1 Discount Baumarkt – saw their revenue edge up 2% to 2.1 billion euros, as a 2.5% increase at toom was offset by a decline at B1.
Rewe said it plans to increase its investment to 2.4 billion euros in 2018, of which 1.5 billion euros will go towards its domestic operations. The group said the focus will be on “the expansion and modernisation of our sales networks, the acquisition of real estate, technology, logistics and training for our employees and management.” (www.kamcity.com)
