Mercator posts H1 loss of EUR 16.5 million

Mercator, Slovenia's largest food retailer, said on Thursday it planned changes to avert a repeat of a mid-year net loss of 16.5 million euros ($20.57 million) hurt by currency losses.

Management has drafted three sets of measures to limit risks caused by Europe's economic crisis and to rationalize the business, it said in a statement published on the Ljubljana Stock Exchange.

- We cannot ignore this. It is our task to turn the business around and put the company in good shape. We have to start already this year and maximize the value for shareholders - new chief executive Toni Balazic was quoted as saying by STA news agency following Thursday's results.

The net loss compares to a profit of 18.5 million euros in the same period last year, before the small euro zone member nation sank back into recession.

Sales revenues rose 1.1 percent to 1.4 billion euros.

Along with the weakening of the Serbian dinar, it blamed the loss on dwindling demand, a growing credit crunch at home and rising energy prices.

Mercator operates stores in Slovenia, Croatia, Bosnia, Montenegro, Serbia, Bulgaria and Albania.

Mercator shares were down 1.74 percent to 113 euros by 0855 GMT on the Ljubljana bourse.