Slovenian retailer Mercator Group is forecasting revenue growth in its 2021 financial year, as well as a normalisation of its EBITDA.
Group revenue for 2021 is budgeted at €2.21 billion, which is 2.4% more than its 2020 estimate, while its Slovenian unit Poslovni sistem Mercator d.d. should see 2.1% revenue growth.
Next year, Mercator Group will continue construction work on its new logistics and distribution centre in Ljubljana. Capex will total €39.8 million, of which 65.8% will be allocated to investments in Slovenia.
It anticipates its net financial debt to EBITDA ratio (including IFRS 16) will be at 4.9.
One notable development in the year 2021 will likely be an in increase of labour and other costs, so Mercator Group has already planned a number of cost control measures.
Mercator Group also said that it plans to boost its activities in the retail and wholesale markets, retain its role of a technological innovator, and continue to invest in the processes of understanding the desires and needs of its customers, based on the largest customer loyalty system in Slovenia and the region.
The retailer will also remain focused on the development of local and regional private label brands.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine