Mercator Group posts net profit of 1.6 million euros in FY 2018 | Progresiv
Slovenia’s Mercator Group has posted a net profit of 1.6 million euros in its financial year 2018, after reporting a loss of 184.4 million euros a year earlier. 
Net sales revenue increased by 1.2% to 2.18 billion euros, with FMCG sales – Mercator's main activity – up by 3.2%, to 1.63 billion euros.
Normalised EBITDA for the financial year grew by 18.6% to 107.5 million euros.
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 euros 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 euros.
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 euros in 2018.
Mercator Group channeled 56.7% of its investments in Slovenia, and 43.3% in other markets.
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%). (www.esmmagazine.com)
