Slovenian retailer Mercator has posted a 1% increase in net profit for the first nine months of the year, which rose to EUR36.4m (US$46.36m).

Profits were boosted by a jump in net sales, which increased 13% to EUR2bn. Sales in Slovenia were up 5% while overseas sales increased 34%, the company revealed yesterday (11 November).

"Despite a serious worsening of the conditions in the banking sector due to the global financial crisis, the financial operations of Mercator are undisturbed," the company said in a statement.

However, Mercator indicated that margins remain an ongoing issue, especially as the credit crisis negatively impacts consumption.

The company said it would look to cut costs during the fourth quarter in a bid to improve profit margins.