Mercator has reported that the global economic crisis took its toll on the company during the first-half of 2009, with year-on-year revenue growth slowing to just 0.9 per cent at actual exchange rates (3.4 per cent at constant exchange rates) to €1.3bn.
Net profit through the period fell considerably, down 49.6 per cent to €11.3m, with adjusted profit before tax down 30.2 per cent to €14.1m – a result that the group described as 'good' considering the economic downturn.
As a result, the Slovenian retailer has revised downwards its net profit forecast for the full year of 2009 to €20.5m, a drop of 50 per cent compared with 2008.
'In light of the unplanned and unforeseen changes in the volume and composition of demand, and negative effects of the currency translation differences in markets outside Slovenia, and considering the current expectations with regard to the development of business environment in the second half of the year, the Management Board at the half of the year 2009 estimated that the planned business goals for 2009 will not be fully accomplished since the effects of cost rationalization will not be sufficient to fully compensate for the negative effects of slower revenue growth,' the group said in a statement.
