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Mercator Group Reports Revenue Of €2.17bn In FY 2020

By Branislav Pekic
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Mercator Group Reports Revenue Of €2.17bn In FY 2020

Slovenian retailer Mercator Group has reported overall revenue growth of 1.6%, to €2.17 billion, in its 2020 financial year, while retail revenue rose by 3.7% to €1.75 billion.

In Slovenia, which accounted for 58.5% of the total turnover, the annual retail revenue growth was even higher, at 5.1%.

Revenues increased by 4.2% in Serbia, the group's second-biggest market, accounting for around 31.2% of total sales, and in Bosnia and Herzegovina by 3.1%. 

However, sales were down in Montenegro by 10.5%, due to a significantly lower tourist season.

The company's normalised EBITDA amounted to €162.8 million, while the net financial debt to normalised EBITDA ratio was 5.2.

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Despite the COVID-19 pandemic, capex increased 39.9% year-on-year to €41.8 million, of which €25.4 million was invested in Slovenia.

Operational Highlights

Mercator Group continued developing and updating its network and key projects, including the construction of a new logistics and distribution centre in Ljubljana.

During the year, the company opened 26 new retail units – five in Slovenia, 13 in Serbia, six in Montenegro, and two in Bosnia and Herzegovina.

The retailer renovated and refurbished 172 outlets, including 70 in Slovenia.

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Mercator Group ended 2020 with 1,005 retail outlets, 19 wholesale (cash-and-carry) units, and 169 franchise stores.

Market Share

Mercator emerged as the leader in Slovenia with a 31.4% market share, up 0.4% year-on-year, followed by Serbia at 12% (+1%), Bosnia and Herzegovina at 4.5% (+1.5%) and Montenegro at 20%.

On average, Mercator's online store saw sales double at the peak of the pandemic, with growth of up to tenfold for a while.

Other notable events in the 2020 fiscal year included preparations for the merger with Fortenova Group, completed on 23 April 2021, and the refinancing of Mercator Group's debts.

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For 2021, Mercator Group is targeting revenue of €2.2 billion and normalised EBITDA of €101.1 million (excluding the effect of the IFRS 16 Leases). 

Capex should reach €39.8 million, of which 65.8% will be invested in Slovenia.

The retailer plans to open 16 new stores and renovate 29 stores across all markets.

© 2021 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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