The Slovenia-based regional retail chain Mercator posted a €1.6 billion sales revenue in 2017, or 2.5 percent up from the year before, which is the company's first revenue increase since 2011.

However, due to the revalorisation of its real estate properties, it ended 2017 with a €184 million loss, the company, which is majority-owned by the indebted Croatian food group Agrokor, said on Thursday.

In its 2017 business results report, Mercator said that the value of its properties was re-evaluated in line with international auditing standards.

“However, the value of real estate owned by Mercator is still more than €4 billion. The re-evaluation was done by an external consultancy, and its findings were audited by two international institutions,” Mercator said.

On the other hand, business results of the Mercator Group improved significantly in 2017 compared to the year before, with its core business – retail sales – posting a €1.6 billion revenue, which would have resulted in a €6 million profit if re-evaluation of properties was excluded.

Last year, Mercator had a €90.6 million normalised EBIDTA earnings, some €28 million or 45 percent up from 2016.

“Mercator plans to continue with focusing on its core business, and successfully implement its new business strategy, which includes cost optimisation and further growth, debt reduction, offer differentiation, and the strengthening of long-term cooperation with suppliers in developing a new concept for the company,” Mercator said in a statement published on the Ljubljana stock exchange website.

Mercator is Slovenia’s largest retail chain which employs 10,000 people and operates stores in Croatia, Bosnia and Herzegovina and other countries in the region. In 2014 the majority stake in the company was acquired by Croatian food and retail group Agrokor, which also owns Croatia’s largest retail chain Konzum.

Follow N1 via mobile apps for Android | iPhone/iPad | Windows| and social media on Twitter | Facebook.