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Retail

Mercator Group Posts Net Profit Of €1.6m In FY 2018

Slovenia’s Mercator Group has posted a net profit of €1.6 million in its financial year 2018, after reporting a loss of €184.4 million a year earlier.

Net sales revenue increased by 1.2% to €2.18 billion, with FMCG sales – Mercator's main activity – up by 3.2%, to €1.63 billion.

Normalised EBITDA for the financial year grew by 18.6% to €107.5 million.

Regional Performance

Of the group's total revenue, 56.1% was generated in Slovenia, 32.6% in Serbia, 5.4% in Montenegro, 4.9% in Bosnia-Herzegovina, and the remaining 1.0% in Croatia.

Last year, the retailer purchased €1.2 billion from local and regional suppliers, accounting for 70% of the entire procurement, significantly contributing to the development of the entire production and sales chain in the markets in which it is active.

Mercator Group lowered its financial debt by 24.2% last year to €785 million.

The ratio between net financial debt and normalised EBITDA reached 7.2, down by 24.2% compared to 2017.

Investments in fixed assets amounted to €29.9 million in 2018.

Mercator Group channeled 56.7% of its investments in Slovenia, and 43.3% in other markets.

Outlook

Mercator Group forecasts that 2019 will be marked by continued tough business conditions due to competition and higher energy, services and labour costs.

Another challenge will be activities related to the execution of the approved settlement of the Agrokor Group creditors.

Every week, around 5 million customers visit Mercator Group's 1,051 directly managed stores in the four markets in which it operates.

Most of its stores are in Slovenia (528), followed by Serbia (327), Montenegro (119) and Bosnia-Herzegovina (77).

On its home turf, Mercator Group is a leader with a 29% market share, ahead of Spar (23%), Hofer (13%), Tuš (11%) and Lidl (10%).

© 2019 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.

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