Mercator profit nearly two thirds above the figure for last year's same period
Improved business performance
In the period 1–3, 2017, Mercator Group generated revenue of EUR 564.6 million, which is 6.7% less than in the same period of last year, and 0.7% less than in the same period of last year in comparable adjusted terms. The revenue between the two periods is not entirely comparable due to divestment of non-core operations of Modiana and Intersport in the second half of 2016.Revenue dropped especially in Slovenia and especially in the markets where Mercator only retained its real estate management operations after the divestment processes in 2016, i.e. in Bosnia and Herzegovina and in Croatia. Revenue increased in the market of Montenegro, by 7.5%. Mercator Group successfully ended the period 1–3, 2017, with a net profit of EUR 1.1 million, which is 64.1% more than in the same period of 2016.
Activities for earliest possible offsetting or netting of mutual claims and liabilities with Agrokor
In 2016, the companies Poslovni sistem Mercator, d.d., Mercator - H, d.o.o., and Mercator - BH, d.o.o., recognized impairments for receivables from the Agrokor Group companies that are not a part of the Mercator Group. At its session held on April 14, 2017, the Supervisory Board instructed the Management Board to immediately examine all possibilities of netting or offsetting as soon as possible all mutual receivables and liabilities between the Mercator Group companies and Agrokor Group companies that are not a part of the Mercator Group. Based on relevant agreements, the first settlements of mutual accounts receivable and payable have already been completed, and signals for the future are also positive in this respect.
Intensive updates of our stores continues
Mercator is looking to offer its customers modern shopping environment in the greatest possible number of locations. Therefore, it will continue to update and refurbish its retail network.In the first three months of the year, Mercator refurbished 22 stores, of which 8 were hypermarkets and 14 were markets. In addition, it acquired 6 new units by operating lease in all markets of its business combined. In the period 1–3, 2017, Mercator's greatest acquisition is the newly constructed Trade Centre Bled in Slovenia.
A range of activities to retain the market share
Mercator remains focused on its key activity, keeping the consumers at the very heart of its efforts. Mercator offers them well-priced high-quality products by renowned domestic and global brands, a broad selection of local produce as a part of the "We Love Local" offer, while additional benefits of the Pika card lead to an additional competitive edge. With its extended and enriched offer of fast-moving consumer goods, and new services, Mercator is certainly keeping the pace with the current global retail trends.
