Slovenian retailer Mercator saw its profits fall in 2008 despite a rise in sales.
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The company posted net profit of EUR40.7m (US$51.6m) compared to EUR43.8m in 2007. revenue reached EUR2.71bn, against EUR2.45bn a year earlier.
Net profit was impacted by higher finance costs, as operating profit rose from EUR91.3m in 2007 to EUR100.3m.
In 2008, Mercator saw its operations outside Slovenia grow to account for 34.2% from 29.9% in 2007. During the year, the retailer expanded its businesses in Bulgaria, Croatia and Bosnia and Herzegovina, as well upping its stake in a venture in Serbia.
By the end of 2009, Mercator plans to open its first hypermarket in Bulgaria, the comp0any said.
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By GlobalDataThe group is planning to invest some EUR83m expanding its business in south-east Europe next year and has also earmarked EUR72m of investment in Slovenia.
Mercator said it would also spend EUR8m on price cuts in its domestic market.
“In our view, the key macroeconomic risk in 2009 is the possibility of further economic slowdown, i.e. falling growth rate, resulting from the negative developments in the global financial markets,” Mercator said.
“Lower economic growth and lower inflation rate are expected in all markets of Mercator Group’s operations, resulting from the economic developments in the global markets.”
