GERMANY: Tengelmann Reports Muted FY Growth

The Tengelmann group has reported understated sales growth figures for its last fiscal year, which it partly attributed to the ongoing sales of its Kaiser’s supermarket banner.

For the year, sales were up 4.5% to €8.24bn on a constant-currency basis.  Sales at its OBI division grew by 2.7% constant-currency to €5.57bn (-0.7% reported), the Netto Marken-Discount banner reported an increase of 2.8% to €12.3bn, the KiK chain saw its sales grow by 8.2% to €1.82bn, the TEDi non-food supply unit saw its revenue increase by 7% on a like-for-like basis, while the and Zalando online units also reported strong growth.

Tengelmann said it is optimistic the Kaiser’s sale will be completed soon, noting that “a basic understanding has been established” in the negotiations to meet the conditions related to the deal. Managing Director Karl-Erivan Haub noted: “After a number of painful decisions in the past, the Tengelmann Group sees itself as being best equipped for the anniversary year of 2017”.