Slovenian retailer Mercator Group has more than doubled its operating profit in the first half of 2018, with profit reaching €16.9 million.
Retail revenues increased by 6.6%, compared to the same period last year, while EBITDA amounted to €48.1 million, which is 14.6% more than that accrued in the same period in the previous year.
Net profit reached €1.5 million, compared to a loss of €4.6 million in the same period last year.
The parent company of the group, Poslovni Sistem Mercator, closed the half-year with a net profit of €9.3 million.
New Strategy
A new 'action plan', which included the renovation of shops and improved competitiveness of services, yielded positive results in Mercator's core retail business.
Slovenia, where the group recorded a 0.8% growth in revenues, and Serbia, where retail sales revenue grew by 1.1% year on year, remain the most important markets for the operations of Mercator Group.
According to Tomislav Čizmić, president of the managing board of the Mercator Group, efficiencies will be further improved by reducing the level of debt and implementing strategic development projects.
This includes a new logistics and distribution centre in the Slovenian capital, Ljubljana.
The net financial debt of Mercator Group as at 30 June 2018 was €771.1 million, which is €80.8 million less than the previous year.
In 2018, Mercator also settled its liabilities to financial and business partners in accordance with the terms and conditions agreed.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: European Supermarket Magazine.
