Ljubljana - Mercator, the leading grocery group in Slovenia, generated EUR 2.2 billion in sales revenue in 2021, up 1.6% over 2020, while its net loss decreased from almost EUR 157,000 to EUR 2,150, shows its annual report released on Monday.

However, excluding losses from revaluation of investment properties, the group posted a net profit of EUR 3.9 million in 2021, the Ljubljana-based company said.

The Croatian-owned group recorded growth in all segments last year, with the most significant growth being that in its core retail business, CEO Tomislav Čizmić says in the annual report.

In Slovenia, where the group generates almost 60% of all sales, revenue rose by 1%, in Serbia growth reached 1.8%, in Montenegro 11.3%, and in Bosnia 1.1%.

Normalised EBITDA grew by 7.9% to EUR 174.2 million, with Čizmić saying that "through a range of activities and focus on one of our most important strategic goals, Mercator also further reduced its indebtedness".

The group recorded the most robust growth in its non-core business - Mercator Emba, a producer of cocoa instant products, saw its revenue rise by 10.9% and M Tehnika, a hardware retailer, by 6.9%.

The most negative impact on sales in Slovenia came from coronavirus restrictions, as customers had to meet the convalescent-vaccinated-tested rule to enter shops, especially in the last quarter of the year, which almost half of the population did not meet, Mercator notes.

In April last year, Mercator refinanced part of its debt and became part of Croatian group Fortenova following lengthy ownership consolidation after its original Croatian owner, now bankrupt Agrokor, bought the Slovenian company in 2016.