REGION: Mercator reports FY 2014 sales down 4.1% | Progresiv
Mercator Group has reported sales of 2.65 billion euros in 2014, a 4.1% decrease y-o-y (year-over-year). The decline is attributable to financial restructuring and change in ownership structure:
Closing down underperforming units, decrease in retail area, and transfer of retail units in Bosnia and Herzegovina and Croatia to Konzum, as part of the integration process with Agrokor in September 2014.
The group reported a 44.5 million euros loss. The impairment of lands in Slovenia, Serbia, and Bosnia and Herzegovina contributed to the financial loss.
In Slovenia, revenue dropped by 2.7%, totaling 1.520 billion euros. In Serbia sales increased 10% to reach 621 million euros and in Montenegro sales increased 3.8%, amounting 109 million euros. In Bosnia and Herzegovina revenue has dropped by 18.9% amounting 154 million euros and in Croatia revenue dropped by 26.8% reaching 250 million euros.
In 2014, Mercator Group retail operations generated 84.3 % of the Group's revenue and the remaining 15.7 % was generated from wholesale activities. For the period ended 31 December 2014, the retailer invested 85.7 million euros in divestments and investments related to retail network.
In Serbia, Mercator allocated 58 million euros to the acquisition of 202 stores and wholesale units from Agrokor’s subsidiary Idea. Investment into property, plant and equipment amounted to 27.7 million euros, 6% less year-over-year (y-o-y). In Slovenia, the retailer invested 19.9% of capital expenditures and 80.1% in the rest of markets. At 31 December 2014, Mercator operated a total of 1,548 stores. (www.kantarretailiq.com)