- Tengelmann presents annual report 2018
- Consolidated net revenue increases to 7.8 billion euros
- Business units reinforce their respective market positions
- Guarded expectations for financial year 2019
With consolidated net revenue of 7.8 billion euros (2017: 7.5 billion euros) the Tengelmann Group reported an increase of 4.7 percent (2017: 3.8 percent) in its annual report for 2018 which it released today. All business units contributed to this positive result and reinforced their leading market share positions in their respective segments. “I am altogether satisfied with the positive development of our company overall and the contributions of our business units to this success”, said Christian Haub, the sole managing partner of the group.
Do-it-yourself – OBI
OBI again strengthened its position as the market leader of the do-it-yourself sector in central Europe. This is underlined by a 5.5 % increase in revenue to 6.4 billion euros. OBI is using its strong position to increasingly position itself as the “go-to-solution-provider” along the entire value chain and thus differentiate itself from the competition.
Clothing – KiK
KiK passed the sales mark of two billion euros for the second year in a row in 2018. The company ranked fifth among German clothing retailers, and retained its top position as market leader in discount textiles. In the past financial year KiK operated 3,696 stores, of which 2,607 were in Germany.
General merchandise – TEDi
TEDi currently operates 2,120 stores, of which 1,647 are in Germany, making the company one of the leading non-food retailers in its domestic market. In addition to Germany, the company has operations in seven other European countries. TEDi continued to expand its European presence with new market entries in Italy and Poland.
E-Commerce – babymarkt.de
In 2018, babymarkt.de was able to increase sales by 7.5 percent to just under 150 million euros. The biggest revenue driver was the German online business, followed by positive developments in France and Switzerland.
At Tengelmann Ventures the primary focus in 2018 was on developing the existing portfolio. Of the existing holdings, especially Masterplan (e-learning), agrilution (vertical farming) and Blickfeld (LIDAR sensors) experienced positive developments. In order to be closer to the companies and their founders, TEV opened a new office in Berlin in May 2018. The portfolio companies of Emil Capital Partners in the USA were once again able to substantially increase their cumulative sales performance. The main contributors to this success were Cheribundi and Zeel, as well as the fashion companies American Giant and Amour Vert. Emil Capital also achieved three successful exit transactions in 2018.
Property – Trei Real Estate
Trei Real Estate concluded transactions with a value of about 160 million euros in 2018. The company, which celebrated its ten-year anniversary in 2018, pursues a two-pronged strategy that focuses on residential housing developments, as well as the successful Vendo Park retail shopping center concepts.
Tengelmann is guarded with respect to the prospects for 2019, in view of the more difficult economic environment. “We are observing this development closely and expect that the dynamic consumer behaviour displayed in recent years will diminish”, cautions Haub. At the beginning of 2020, the newly formed holding organisation, Tengelmann Twenty-One, will be launched with a new emphasis focused on strategic business development and a more international orientation.
About the Tengelmann Group
The Tengelmann Group is one of the most significant commercial companies in the world. In addition to its strategic business units, more than 80 start-ups comprise the Tengelmann portfolio. In the year 2018 more than 90,000 employees generated consolidated net revenue of 7.8 billion euros. The group includes such companies as the textile discounter KiK, OBI DIY stores, and babymarkt.de. Also part of the group are the real estate company Trei Real Estate as well as the holding companies Emil Capital Partners in the USA and Tengelmann Ventures in Germany, which have been investing in start-ups for several years.