Current Situation of Rewe Shareholders
The Rewe shareholders are currently receiving very little profit shares from the group. According to reports, the interest expense exceeded the net profit of the shareholders by 0.1 million euros.
Debt Spiral of Rewe Group
Germany's largest retailer, the Cologne-based Rewe group, continues to spiral into debt. The Handelsblatt reports, citing the new 2023 annual report, that the balance sheet liabilities amount to more than 16 billion euros even after deducting liquid assets.
Impact on Shareholder Profit
The associated interest demands are significantly reducing the profit share of the shareholders - mostly independent Rewe supermarket operators. They are left with only 0.8 cents per euro of sales.
Financial Challenges
According to the income statement, the interest expense exceeded the net profit of the shareholders by 0.1 million euros. This includes payments to banks and bondholders, as well as imputed interest for rental and leasing agreements, which are also to be considered in the financial result according to the international accounting standard IFRS. They represent about three-quarters of Rewe's net debt.
Reasons for Debt Increase
"The net debt amounted to 16,116.7 million euros and exceeded the planned values," said CEO Lionel Souque in the annual report. According to the report, there were two main reasons for this besides "unplanned acquisitions": a full inventory of unsold goods and high receivables. Both items turned out to be higher than expected.
Business Activities of the Group
The group's business activities are divided into six so-called business fields, further subdivided into divisions. The group is active in the business fields described below with the brands mentioned above.
Financial Report 2023
To the 2023 financial report
