Balkans retailer Mercator has forecast it will move back into profit in 2014 despite lower sales.
Slovenia-based Mercator, which is lined up to be taken over by Croatian rival Agrokor, has estimated it will post a net profit of EUR339,000 (US$446,000) next year. The result would be a “considerable improvement” over the expected figure for 2013, Mercator said.
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In the first nine months of this year, Mercator ran up a EUR17.6m loss. Revenue was down 3.6% at EUR2.06bn as Mercator quit Albania and Bulgaria, plus closed stores in other markets.
Mercator, runs a variety for store formats across five regional markets, forecast sales of EUR2.67bn in 2014, 3.5% lower than the result it expects this year. It said closing unprofitable stores, exiting “non-strategic markets” and “persistently harsh economic conditions”.
The retailer said it expects to spend EUR58.9m in 2014 on refurbishing stores and acquiring new space.
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Last month, Slovenia’s competition watchdog gave the green light to Agrokor’s plan to buy 51% of Mercator. Croatia’s anti-trust authorities are still scrutinising the deal.
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