Germany's REWE Group has posted a 3.7% increase in revenue in full-year 2019, in what chief executive Lionel Souque said was a "good year" for the business.
Revenue at REWE Group from continuing operations stood at €55.4 billion for the year, while total external sales, including those by independent traders, brought this total up to €62.7 billion.
REWE said that revenue grew by 2.3% in Germany and by 6.8% abroad (+6.9% if adjusted for currency effects).
EBITDA rose to €4.1 billion, from €1.8 billion the previous year, which includes a significant positive effect from the adoption of the new IFRS 16 accounting standards.
Investments in property, facilities, equipment and intangible assets was €1.8 billion last year, in line with the previous year. This did not include the purchase price for the Lekkerland business last year, the retailer said.
REWE's domestic store network saw sales rise 3.2% to €24.5 billion in the period, while its supermarket and drugstore activities in Austria, the Czech Republic, Slovakia, Russia, Bulgaria, Croatia, Lithuania and Ukraine were up 8.2% to €10.2 billion.
In Austria alone, sales were up 2.3% to €6.5 billion, while in Central and Eastern Europe, sales grew by 20.4% to €3.7 billion.
Its domestic discount brand, Penny, posted sales of €7.6 billion for the year, in line with the previous year (+0.1%), while Penny International achieved an increase in sales of 6% in the countries in which it operates.
“2019 was a good year for our company," commented Lionel Souque, REWE Group chief executive.
"We had a strong development in both sales and earnings. Today we can clearly see how important this positive economic development was last year, because it helps the REWE Group to successfully master the challenges of 2020."
Souque addd that the group is planning to invest €2 billion in its operations this year, on the "further development of our business models and the modernisation and expansion of our markets in Germany and abroad."
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.