Mercator improves business performance again in the first nine months of the year
In the first nine months of 2021, Mercator Group reached all of its key business goals and improved its business performance in comparison to the same period of the preceding year. Operating profit amounted to EUR 57.6 million, net profit for the period was EUR 12.6 million, while normalized EBITDA increased by 10.8% relative to the equivalent period of the year before, to reach EUR 139.3 million. In the period at hand, Mercator Group also further decreased its net financial debt.
"After many years, Mercator succeeded in bringing its net financial debt to normalized EBITDA ratio to below five, which indicates that the strategic decisions have yielded the right results. A financially solid Mercator with sound business success is not only in the best interest of the company, employees, and shareholders, but also in the best interest of the entire chain from producers to the food industry in Slovenia and in the region. Mercator shall continue its digital transformation of operations and insist on providing modern personalized service and offer for the customers. Since Mercator Group is a part of the Fortenova Grupa, we can continue our strategic investments, especially the investment into the new logistics and distribution centre in Ljubljana and the update of the sales network," underscored the president of Mercator's Management Board Tomislav Čizmić.
Sales revenue was up by nearly one percent in the period at hand, and reached EUR 1.6 billion, and the Group's revenue in retail, its core activity, grew at a similar rate. Comparisons to the year 2019 (the period before the coronavirus pandemic) also attest to Mercator Group's successful performance, as sales revenue in the period 1–9, 2021, increased by 2.9% relative to the equivalent period before the COVID-19 epidemic (i.e., period 1–9, 2019). The highest growth of sales revenue was recorded in retail. In Slovenia, it increased by 4.8% relative to the equivalent period before the declaration of the COVID-19 epidemic (period 1–9, 2019). Business performance of the company Poslovni sistem Mercator d.d. was also successful in the period 1–9, 2021, as its operating profit (EBIT) reached EUR 34.4 million, which is an increase of EUR 4.2 million over the last year's comparable period.
In the first nine months of this year, Mercator Group's CAPEX amounted to EUR 20.9 million, the largest part of which was invested into update of its sales network.
Operations in the period 1–9, 2021, were affected by the COVID-19 epidemic that meant adoption of extra measures, and continuous adaptation to the actual circumstances and the effects of particular measures put into place by the government and other relevant authorities. Successful business performance depended especially on rapid adaptation of business operations, and efforts by employees in the Mercator Group.
This announcement will be published on the company’s website at www.mercatorgroup.si as of November 25, 2021, and will remain published for a period of at least five years.
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