Ideally positioned for 150th financial yearPrint

Tengelmann Group reports very positive results

Mülheim an der Ruhr, 13 July 2017 – At today's press conference on the Group's financial statements, Karl-Erivan W. Haub, Managing Director and personally liable partner of the Tengelmann Group, looks back on a very successful financial year on the occasion of the group’s anniversary. “With consolidated net revenue of 9.0 billion euros, we again substantially exceeded the profit for the previous year by 8.9 percent! If we disregard the economic burdens caused by the sale of Kaiser’s Tengelmann, 2016 was one of our most successful years ever!” This result was achieved in large part by the retail business units OBI, KiK, TEDi and babymarkt.de, which were able to continue developing their leading position in the respective market segments. The real estate developer Trei Real Estate and the two venture capital companies Tengelmann Ventures and Emil Capital Partners also contributed to this success. “In the year of our 150th anniversary, I am especially pleased with our financial report,” says Karl-Erivan W. Haub. “It shows that we are on the right course and that we are ideally positioned for the future!”

The annual report submitted today bears the title of the anniversary year motto: “150 years of Tengelmann. Continued action.” Karl-Erivan W. Haub: “In 1867 our great-great-grandfather Wilhelm Schmitz-Scholl and his wife Louise laid the foundation stone for our present-day family business. The local Mülheim grocery business of former times has become a major enterprise with operations in 20 countries and more than 70 holdings on every continent of the world. When we celebrate our 150th anniversary in September, we will stop for a moment and look back at the past. Then we will continue on with zest to the next anniversary: the 175th. Because the future has to be redesigned every day anew!”

Do-it-yourself – OBI

In 2016, OBI further intensified its expansion: Among the 33 stores that opened in 2016, seven were in Germany; another 20 were acquired by OBI from the former competitor bauMax in Slovakia, the Czech Republic, Slovenia and Austria. “With the completion of this acquisition process, OBI has once again expanded its market leadership in central Europe, earning net revenue of 6.07 billion euros in the last financial year, which is an impressive increase of 9 percent compared to the previous year (adjusted for currency exchange effects: 10.4 percent),” says Haub. At the end of the year, the leading DIY home and garden company operated 651 stores in eleven countries with 45,637 employees; 350 of those locations are in Germany.

Clothing – KiK

For KiK, the last financial year was likewise once again very successful – despite the continued growing competition and low spring sales due to the prevailing weather conditions. In Germany and the other eight European countries where the family discounter is represented, the company earned revenue of 1.95 billion euros with 25,322 employees in 3,439 stores. This corresponds to an increase of 7 percent and means that KiK is once again a top performer in the otherwise stagnating textile sector. “We will continue to grow with KiK – within the next five years the company plans to increase the number of stores from 3,400 to 5,000. Plans for the current year include entry to the Italian market; and before the end of the decade, we will open the first stores in the USA,” Haub adds.

Local supplier – TEDi
The local non-food supplier TEDi was likewise able to further develop its market position in the last financial year. This was achieved primarily by the conversion to the new “TEDi+” store concept and continued expansion in the five European foreign markets. Spain is especially at the focus of activities in this respect; long-term plans call for operation of 800 stores on the Iberian Peninsula. With 11,480 employees in 1,538 stores the company achieved an increase in revenue of 13.5 percent as of the end of the financial year on 30 April 2016.

E-Commerce – babymarkt.de
“With an online selection of more than 100,000 products from brand-name manufacturers, babymarkt.de is one of the leading distributors of products for babies and infants in Germany,” Haub explains. In addition to twelve online shops, the company meanwhile also has five walk-in stores in Essen, Münster, Dortmund and Duisburg. 2016 was the most successful year in the history of babymarkt.de: Both the German and the international online platforms concluded the financial year with record figures, having achieved revenue of 121.7 million euros, which corresponds to growth of 63.2 percent.

Venture Capital – Tengelmann Ventures (TEV)

Through Tengelmann Ventures GmbH (TEV), the Tengelmann Group has, since 2009, been investing in start-ups in the areas of consumer internet, marketplaces and technology. It supports its portfolio companies with financing expertise and management know-how as well as with infrastructure services. In the last financial year the enterprise strengthened its focus on companies that are working on new fintech and farmtech solutions. "With around 40 holdings, TEV is now one of Germany’s most important venture capital investors,” explains Karl-Erivan W. Haub.

Venture Capital – Emil Capital Partners (ECP)
The US venture capital business of the Tengelmann Group is linked with the subsidiary Emil Capital Partners (ECP). Karl-Erivan W. Haub: “This investment strategy is oriented toward enterprises in the segments of Food and Beverages, Digital Media, Internet Services or Fashion & Beauty that cater primarily to North American markets.” The portfolio currently comprises 27 investments in the USA, Canada and Israel. The portfolio primarily includes start-ups with products or services that have the potential to generate long-term growth and profitability.

Property – Trei Real Estate
“Our real estate subsidiary continued to push the strategic realignment started in 2015: away from management of retail real estate toward a value-creating enterprise that develops its portfolio for its own assets,” says Karl-Erivan W. Haub. To achieve this, the development pipeline was increased from 300 to 350 million euros in the last financial year. In Berlin, Trei Real Estate is planning and implementing the construction of two new buildings with a total of 426 residential units. Another project implemented independently – the student apartment complex in Cologne with the name “Quartillion” – was completed in March of this year. The development of Vendo Park specialist retail centres is also making progress. In Poland alone, five additional Vendo Parks will soon be ready for leasing; altogether, 25 Polish Vendo Parks are planned.