Net profit was 89.9% of the planned figure for the entire year.
“In the first nine months of 2008, Mercator Group generated nearly 2.0 billion euro of net revenues from sales, which is 13% more than in the same period last year and 75.3% of total planned revenues for the year 2008,” Mercator said in a filing to the Ljubljana Stock Exchange (LJSE).
However, the nine-month net profit of Mercator’s Slovenian unit fell 2.5% despite a 5.4% increase in its net revenues.
Operations in Slovenia were negatively affected by inflation and the global financial crisis, the statement said.
Mercator shares were traded 1.76% down at 193.33 euro at 1020 GMT on Wednesday, according to LJSE data.
The company said operations abroad saw high revenue growth and improvement of business performance. Net revenues from sales abroad reached 667 million euro through September, amounting to a third of total group revenues.
Mercator cited as negatively influencing its operations the changes in the scope and composition of consumption as a consequence of higher product prices, the inflationary pressures on operating costs and the higher financing costs resulting from the global financial crisis.
On the other hand, the opening of new retail units and the revamp of existing ones, intensive marketing activities, cost rationalisation, productivity improvement activities and optimisation of logistics operations had positive effects.
Mercator said the implementation of its 2008 investments was consistent with its plan and financial operations remained unhindered.
"In the first nine months of 2008, the Group invested a total of 190 million euro; at the annual level, over 260 million euro of investment is planned according to the business plan. In 2008, Mercator Group will execute the investment plan in its entirety,” the company said.
Mercator group employed 21,318 at the end of September, 61.3% of whom were based in Slovenia.
($ = 0.7847 euro)