“Supervisory Board of Mercator has accepted business plan which predicts increase in revenues and profits in the coming years, “ announced the Slovenian retail chain owned by Agrokor.
“For 2018, sales revenue of 2.4 billion euros is planned, with gradual growth in the following years, and revenue in 2021 would amount to 2.5 billion, “ said Mercator in a media statement on Wednesday.
Earnings before taxes, depreciation and amortization (EBITDA) in the next year should amount to 97 million euros, and Mercator’s revenue for the following years should be increased by three percent per year, according to the accepted business plan.
Mercator’s revenue in 2016 amounted to 2.37 billion euros, and in the first nine months of this year, 1.730 billion. According to the plan for the next year, Mercator would have to make 56.2 percent of its revenue in Slovenia, 32.3 percent in Serbia, 5.5 percent in Montenegro, and 5.1 percent in Bosnia and Herzegovina (BiH). The lowest revenue next year will be realized in Croatia, because the retail network is transferred to Konzum, after merging with Agrokor, so now Mercator in Croatia only gets revenues from its property.
Mercator plans to invest 37.7 million euros for the next year, of which almost half is for the strengthening of retail capacities.
In the next year, the company will use several steps to continue to sell its business space, monetizing, and will largely aim to reduce its financial liabilities to banks.
“In this way, new Mercator investments, primarily in the new logistics-distribution center in Ljubljana will be enabled, “ Mercator said.