REWE Group Sustainability Report 2018

Economic Performance

The long-term business success of REWE Group is based on a cooperative structure that is shaped by such values as solidarity, unity and sustainability. The cooperative philosophy, the management culture that has arisen from it and the related long-term, cross-generational direction of the company create security and stability for all stakeholders, extending from members and employees to customers, suppliers and the entire socio-economic environment. For this reason, the Supervisory Board, shareholders, retailers and the Management Board of REWE Group consider the long-range cooperative structure to be a guarantee of independence and self-determination.

GRI 201: Economic performance

Management approach

REWE Group is determined to generate long-term business success and to conduct its business activities in an environmentally and socially conscious manner. This commitment is spelled out in the Guidelines for Sustainable Business Practices that apply to all employees and contract partners of REWE Group. In the Guidelines, the company expresses its determination to reduce greenhouse gas emissions generated by business processes, use renewable energy sources and conserve natural resources, among other actions. By developing socially and environmentally acceptable products and services as well as expanding its more sustainable product range, the company is also helping to minimise the negative impacts created by its business operations.

GRI 201-1:

Direct economic value generated and distributed

In 2018, total external revenue of REWE Group increased by 4.7 per cent to 61.2 billion euros. Total revenue of REWE Combine was 53.4 billion euros in 2018 (previous year: 49.4 billion euros) (for more information, see also the Combined Management Report for the 2018 Business Year, pages 12 and 14).

Revenue development
in million € 2018 2017 Change in absolute figures Change in %
Retail Germany 31,443.7 28,621.1 2,822.6 9.9
Retail International 14,242.7 13,353.5 889.2 6.7
Travel and Tourism 4,880.0 4,649.6 230.4 5.0
DIY Stores 2,151.1 2,130.8 20.3 1.0
Other 660.3 669.3 -9.0 -1.3
Total 53,377.8 49,424.3 3,953.5 8.0

Result, key figures
in million € 2018 2017 Change in absolute figures Change in %
Revenue 53,377.8 49,424.3 3,953.5 8.0
Cost of materials, incl. changes in inventories -40,378.2 -36,948.6 -3,429.6 -9.3
Gross profit 12,999.6 12,475.7 523.9 4.2
Gross profit ratio 24.4% 25.2 %
EBITDA 1,843.1 1,594.9 248.2 15.6
Depreciation, amortisation and impairments/reversals of impairment losses and impairment losses (excl. goodwill) -1,234.6 -1,103.5 -131.1 -11.9
EBITA 608.5 491.4 117.1 23.8
Goodwill impairments -10.4 0.0 -10.4 0.0
EBIT 598.1 491.4 106.7 21.7
Financial result -14.6 -16.6 2.0 12.0
EBT 583.5 474.8 108.7 22.9
Taxes on income -153.7 -133.0 -20.7 -15.6
Results from continuing operations 429.8 341.8 88.0 25.7
Results from discontinued operations 0.0 -4.0 4.0 100.0
EAT/net income for the year 429.8 337.8 92.0 27.2

GRI 201-3:

Defined benefit plan obligations and other retirement plans

REWE Group pension fund
As a result of demographic change, supplemental retirement planning is becoming increasingly important. REWE Group understands this need. Through its REWE Group pension fund, it provides employees with a company pension scheme that is designed especially with the needs of retail employees in mind.

In addition to providing pension payments, the REWE Group pension fund provides benefits covering invalidity and death. It can be continued after changing employers. In addition, REWE Group assumes liability for the funds paid into the system and supports employees with an employer-financed payment of up to 300 euros each year. The company provides a supplement of up to 15 per cent to employees’ own contributions to the pre-tax deferred compensation scheme. REWE International AG offers a similar programme in Austria.

REWE Group voluntary pension benefits
The benefits of the German government’s basic pension scheme are limited to the so-called pension contribution assessment ceiling. The need to have a supplementary retirement plan is particularly high for employees with incomes that exceed this ceiling because the difference between their final salary and the highest basic pension entitlement of the government scheme can be very high. To address the needs of this target group, REWE Group offers its own retirement scheme model called REWE Group Voluntary Pension Benefits. The benefit of this model is its tax-free contributions, which can include large amounts of employee-financed contributions, through the pre-tax deferred compensation scheme. Outside Germany, special retirement schemes are offered because national social security and tax laws set the conditions for company pension plans.

Historic pension models
In addition to the active pension models described above, both defined-contribution and defined-benefit plans of employees who worked at companies that were acquired in the past are continued. They are also listed among pension provisions in the Annual Report if necessary.

In 2018, the fair value of the defined-benefit obligation (DBO) for the entire REWE Group was 1,003.4 million euros (in addition to 238.8 million euros of pension-like obligations; 2017: 998.1 million euros and 243.5 million euros, respectively). More information can be found in the Combined Management Report for the 2018 Business Year, from page 120.

Other benefits:
Other employee benefits, as described below, include voluntary add-ons and voluntary social benefits like survivor benefits and retirement allowances, the volume of which is listed as a component of “pension-like obligations”.

Voluntary add-ons by sales line, in euros
Sales line Year Euro
Retail Germany 2016 51,345,413
2017 57,558,722
2018 56,942,695
Retail International (Austria) 2016 -
2017 -
2018 -
Travel and Tourism 2016 234,000
2017 242,000
2018 245,000
DIY Stores 2016 2,700,049
2017 2,757,977
2018 2,699,678
Other 2016 8,518,443
2017 8,973,589
2018 9,600,905
Total (scope of application of the sustainability report) 2016 62,797,904
2017 69,532,287
2018 69,488,278

The 13th and 14th monthly salary payments (holiday pay and Christmas bonus) are covered by collective bargaining agreements in Austria and, as a result, do not constitute add-ons.

Pension scheme by sales line, in euros
Share of participants in the company pension scheme (of all eligible employees) in % Contributions to the company pension scheme (employee + employer) in euros
Sales line Year
Retail Germany 2016 24.6 27,411,364
2017 23.5 30,373,824
2018 22.4 31,800,602
Retail International (Austria) 2016 5.2 595,200.0
2017 5.1 598,200.0
2018 5.2 620,400.0
Travel and Tourism 2016 63.3 5,487,000
2017 64.1 5,606,000
2018 63.3 5,629,000
DIY Stores 2016 34.1 3,843,507
2017 33.6 4,160,498
2018 32.5 4,076,178
Other 2016 37.4 12,933,275
2017 36.8 14,899,269
2018 37.0 11,674,634
Total (scope of application of the sustainability report) 2016 22.3 50,270,345
2017 21.7 55,637,792
2018 20.9 53,800,814

Austria has had a company pension scheme for employees since September 2010. The company pension for managers in Austria is not included in the table.

More topics:

REWE Group Portrait

GRI 102-1 – 102-7, 102-10

Employee Structure

GRI 102-8, 102-41

Supply Chain

GRI 102-9

Risk Management

GRI 102-11

Industry Initiatives and Memberships

GRI 102-12, 102-13

Principles and Guidelines

GRI 102-16, 102-17

Sustainability Strategy

GRI 102-18 – 102-21

Stakeholder Dialogue

GRI 102-40, 102-42 – 102-44

Materiality Analysis

GRI 102-45 – 102-47, 102-49

Report Profile

GRI 102-48, 102-50 – 102-56

Compliance

GRI 205, 206, 307, 419

Public Policy

GRI 415

Data protection

GRI 418