Ljubljana, 11 May (STA) - The group around Slovenia's largest retailer Mercator generated EUR 637.2m in revenues in the first quarter of 2010, a 3.2% growth year-on-year. The group posted EUR 6.65m in net profit, which is 3.1% more than in the same period last year, Mercator said in a press release on Tuesday.
The group generated 36% of the total revenues on foreign markets. The growth of revenues in the first quarter was influenced by the strategic tie-up with Croatian retailer Getro and investments in the retail network in 2009.
Operations were affected negatively by a drop in wholesale activities because of increasing risk of payment drefault, unfavourable trends in the sales of technical and textile goods and change in the exchange rate of the Serbian dinar.
The group generated in the first quarter EUR 51.9m in cash flow, which is 1.7% more than in the same period last year. This equals 25.6% of the planned annual cash flow for 2010, the company said.
In this period, the Mercator group invested EUR 32.8m in fixed assets. It acquired a total of 122,712 sq. metres of shopping area, most of which is related to the tie-up with Getro in February.
The deal with Getro gave Mercator long-term lease on 16 cash&carry-type stores, which enhanced its position as the second biggest retailer in Croatia.