Slovenian food retailer Mercator revealed yesterday (13 November) that it generated a loss in the first nine months of the year despite flat sales.
Mercator booked a loss of EUR22m (US$27.96m) in the first nine months, down from a net profit of EUR27m in the comparable period of last year.
The company blamed the loss on the economic slowdown that has hit its domestic market. "Economic slowdown in the region, persisting debt crisis, drop in Slovenian import and export, and negative changes in exchange rates in Serbia had a strong negative impact on Mercator Group performance," the company said in a statement.
Net sales rose by 0.7% to EUR2.1bn, driven by a 4.4% increase in international sales which offset a 2% decline in Slovenia.
MERCATOR, d.d., Ljubljana
Mercator Group revenue in the first three quarters of 2012 remains approximately the same as in the corresponding period last year, revenue growth in international operations at 4.4%
Pursuant to the Rules and Regulations of the Ljubljana Stock Exchange, d.d, and the relevant legislation, the company Poslovni sistem Mercator, d.d., hereby informs the shareholders and the public of the following:
Mercator Group exceeded EUR 2.1 billion of revenue in the period 1-9 2012, which is approximately the same as in the corresponding period last year. Revenue in Slovenia dropped by 2% while in international markets, it rose by 4.4%.
Economic slowdown in the region, persisting debt crisis, drop in Slovenian import and export, and negative changes in exchange rates in Serbia had a strong negative impact on Mercator Group performance. As a result, Mercator Group saw a loss of EUR 22 million in the period 1-9 2012.
Mercator Group invested EUR 55,976 thousand in the development of retail network in the period 1-9 2012, gaining over 43 thousand square meters of new gross area, mostly by operating lease, but in compliance with the new strategy, investment policy is much more conservative.
Changes in our target markets also require some changes in the operation of the entire Mercator Group. To this end, the Management Board of Mercator, d.d., formed a new vision and mission of the Group, and specified the principles of corporate activities.
