Mercator Group is planning a 3.3-percent revenue growth despite the expectations of notably aggravated economic conditions.
After a strenuous third quarter of 2011, the fourth quarter saw business conditions become even more hostile. According to current forecasts, such economic circumstances will persist presumably for the entire 2012. This inevitably affects the business performance and calls for appropriate measures to counter the crisis, therefor Mercator has already devised a set of counter-crisis measures that are targeted at alleviating the burden of the harsh environment.
In 2012 Mercator Group is planning total revenue of more than EUR 3 billion, which is 3.3-percent more than estimated for 2011. Responding to the expectations of harsh conditions in 2012, the Group additionally trimmed down its investment plans. Hence, total investment is planned at no more than EUR 88.5 million, with planned divestment of non-core assets in the amount of EUR 10.1 million. The activities of real property monetization will continue. They include plans to sell a part of the real estate portfolio worth EUR 250 million. All proceeds from real estate monetization shall be used to reduce the outstanding debt which is planned to decrease notably relative to the end of 2011. Due to the expected considerably aggravated economic circumstances and the resulting drop in revenue growth, lower investment, price investments required to provide competitive prices for the consumers and increased operational risk, the performance planned for operations in 2012 falls short of the estimated results for 2011. Hence, Mercator Group planned net income for 2012 is 34.0-percent lower than 2011 estimate.