In 2021, total external sales from continuing operations rose by 2.5 percent to 76.5 billion euros.
(Photo: dpa)
Cologne The travel and retail group Rewe is preparing for narrower margins as a result of rising raw material and logistics prices. “It is one of our main activities to do something about it,” said CEO Lionel Souque on Tuesday.
Rewe, with around 380,000 employees in 21 countries, is taking many countermeasures and is also saving on heating and lighting in the shops. But discussions with suppliers are also held closely. “We are in difficult negotiations with the industry,” says Souque. Simply passing on the costs doesn’t add up.
“It’s total nonsense to think that we can hand it all over to the last man. Who should pay for that?” It is therefore perfectly clear that Rewe will have a lower return this year. “There’s no need to complain, that’s the way it is. We earned enough last year.” In 2021, total external sales in the group from continuing operations rose by 2.5 percent to 76.5 billion euros. The operating result (EBITA) increased to 1.49 (previous year: 1.22) billion euros, the net profit to 756 (415) million.
Despite the war in Ukraine, Souque didn’t want to hear about supply bottlenecks. Using the example of sunflower oil, most of which has so far been supplied from Ukraine and Russia, he cited panic buying as the biggest problem. With normal shopping behavior, the shelves would not be empty.
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In other countries like France, Poland or Spain there is enough sunflower oil from other suppliers. “There will be no food problem in Germany,” emphasized Souque.
The manager said it was lucky that Rewe decided a few years ago to focus on business in the European Union. In 2020 Rewe sold the 32 stores in Ukraine and in 2021 the 161 stores in Moscow. “In retrospect, you have to say that those were damn good decisions, even with a bit of luck.” But it was clear that these are politically and economically difficult countries.
Tourism division is booming
The tourism division around the brands DER, Jahn Reisen and ITS will help the group with sales development. There has been a real booking boom since the beginning of the year, said board member Sören Hartmann.
It can be assumed that there will be kerosene surcharges. But people are so hungry when traveling that a surcharge of 50 euros should probably be accepted on a medium-haul route. “We believe that we can achieve over 80 percent of a normal summer,” says Hartmann.
More: Interview with the head of the bakery trade: How expensive will bread really be?