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Categories: Corporate Results

Slovene Retailer Mercator Cuts 2009 Forecasts

Source: Reuters
26/08/2009

Ljubljana, Aug 25 - Slovenia's largest food retailer Mercator lowered its 2009 profit and sales forecast on Tuesday as difficult economic conditions continue to weighed on shopping habits in its Balkan markets.

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"Because of the economic situation in all the markets and current business expectations, we have had to revise the 2009 forecast," Mercator said in a statement.

Mercator, which has been aggressively expanding in the Balkans, said it expected net profit this year to fall by 50 percent to 20.5 million euros ($29.3 million) on flat sales of 2.7 billion.

In December, the company forecast its bottom line at 30 million euros on 2.8 billion in sales.

Also on Tuesday, Mercator reported consolidated first half net rofit of 11.3 million euros, half the figure from the year-ago period, on flat sales of 1.3 billion.

Mercator said in July it would open its first stores in Albania and Bulgaria this year, adding to its presence in Slovenia, Croatia, Serbia, Bosnia and Montenegro. It plans further expansion in the region despite recent woes.

Mercator shares closed nearly flat at 160.9 euros on Tuesday ahead of the announcement. Ljubjana's SBI index <.SBI> lost 0.9 percent.



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