Germany's second-largest food retailer Rewe Group saw its earnings fall dramatically last year, according to results published by the retailer.
The group's profit before interest, taxes and amortisation for 2011 fell 8.8 per cent year on year to €592.5m, while its earnings before interest, tax and depreciation on assets and goodwill, including discontinued operations, came in at €1.2bn for 2011, compared with €1.3bn in 2010.
However, the Cologne-based retailer was keen to underline the notable increase in its overall group turnover for the year, which increased 3.3 per cent ot €48.4bn.
That rise was driven by 3.6 per cent annual growth in turnover at its foreign operations – including a sizeable network of stores in eastern Europe - to €13.5bn, while in Germany itself turnover rose 3.3 per cent to €48.4bn.
'The Rewe Group ended the 2011 financial year with record turnover,' commented Alain Caparros, the company's chief executive. 'Despite the persistent fierce competitive situation, our companies recorded excellent growth in retail trade and tourism.'
He added: 'The Rewe Group has the economic strength and profitability to cope with the challenges in the discount segment and, at the same time, to invest in the modernisation of other business units.'
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