DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5

Mercator Revenue and Profit Drops In 9M

By Branislav Pekic
Share this article
Mercator Revenue and Profit Drops In 9M

Slovenian retailer Mercator has reported a drop in both revenue and net profit for the first nine months of 2016, compared to the same period in 2015.

Revenues amounted to €1.89 billion (-3.3%), while net profit was €8.2 million, down by around three-quarters on the same period last year.

Impacting the negative result were the closure of some stores for renovation this year, resulting in lower revenues in both Slovenia (-3%) and Serbia (-5%). Also, Mercator sold non-core assets in Slovenia, such as the coffee production department Santana, the Grosulje bakery and the M Holidays travel agency.

The revenue decline was the highest in Croatia (-8.3%), due to the closure of the entire market program in June 2015 as a result of market consolidation within the Agrokor Group, while revenues in Montenegro increased by 9.8%.

On the plus side, Mercator’s market share has been steadily increasing since April this year.

ADVERTISEMENT

During the period January-September 2016, Mercator earmarked €53.2 million for investments (+12.2%), mainly on the reconstruction and furnishing of stores in Slovenia and Serbia, on which it spent 58% of the cash.

The retailer should start construction of its new €100 million logistics and distribution centre in the second half of 2017, expecting work to be completed by the end of 2018.

Mercator is owned by Croatian food-to-retail consortium Agrokor.

© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. To subscribe to ESM: The European Supermarket Magazine, click here.

Get the week's top grocery retail news

The most important stories from European grocery retail direct to your inbox every Thursday

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our terms & conditions and privacy policy. You can unsubscribe at any time.