Mercator will collaborate with Agrokor on debt refinancing

Mercator’s Director Toni Balažič stated on Wednesday that the goal of his management is to ensure the long-term profitability of Mercator by the end of the year and to reach an agreement with banks on debt refinancing, in collaboration with the Agrokor group.

Speaking at a press conference where he presented Mercator’s business results for the first half of the year, Balažič said that Mercator’s profitability has begun to improve, and net debt has been reduced to 990 million euros.

Mercator’s sales revenue in the first half of this year decreased by 3.3 percent compared to the same period last year, but the net loss of 15.5 million euros was reduced by one-fifth compared to last year, and Mercator’s market share in Slovenia is no longer declining.

Mercator’s operating profit amounted to 11.3 million euros and was reduced due to a decline in sales revenue and margins despite business optimization, a smaller number of employees, and withdrawal from some markets, while above-average declines in sales revenue were recorded in the markets of Slovenia and Croatia.

Mercator’s operations have been affected by tightened macroeconomic conditions and a decline in purchasing power in the markets where it is strongly present.

Balažič also commented on the procedures related to Mercator’s cooperation with the Agrokor group, which signed a purchase agreement with the owners of 53 percent of Mercator’s shares in June. He stated that the due diligence procedures for Mercator have been completed, so now it remains to realize the provisions of the purchase agreement with Agrokor. A joint business plan could be drafted in September, after which discussions on joint debt refinancing would immediately begin, and an agreement with banks could be reached by the end of the year, Balažič assessed.

He emphasized that Mercator has reduced its net debt by 18 million euros by mid-year, now amounting to 990 million euros, which is the first time since 2009 that it is below one billion euros.