Mercator Medical: over PLN 200 million in profit in Q2 2020

The Krakow-based manufacturer of medical gloves and distributor of single-use medical materials, Mercator Medical, has presented the estimated results for the second quarter of 2020. They confirm continuation of the positive trends observed in the previous quarter. The company beat successive records – PLN 374 million in revenues, PLN 209 million in net profit, and PLN 233 million in EBITDA result.

Selected consolidated financial results:

*preliminary estimated results published in the current report no. 34/2020

The demand in the global market for single-use protective and medical gloves associated with the coronavirus pandemic is favourable to manufacturers and distributors of this product range. Already in the first quarter of this year, the Mercator Medical Group multiplied its profits. The published preliminary estimated results for the second quarter show an even greater positive change in the results.

Consolidated sales increased to nearly PLN 374 million (+174%), and in the period from April to June this year, the Mercator Medical Group’s estimated EBITDA result was PLN 233 million, which translated into

PLN 209 million in net profit.

These are record-breaking results for the Mercator Medical Group. For example, the net profit in the second quarter of the current year alone is 3.5 times higher than the total result at this level for the last 10 full financial years.

“We follow the market trends with success, and we are happy to see good times for the sector of manufacturers
and distributors of single-use gloves. As a result, in the second quarter we experienced increased market prices and margins not only in the distribution, but also in the production segment. At the same time, it was the first full quarter for the business in the new reality”, states Witold Kruszewski, Member of the Management Board – Financial Director at Mercator Medical S.A.

We are pleased with our excellent results, but at the same time they motivate us to continue our hard work”, he adds.

The final financial results along with the details will be included in the Mercator Medical Group’s interim report for the first half of the year to be published on 15 September this year.

As its financial results continue to increase, the position of Mercator Medical is consistently becoming stronger on the Warsaw Stock Exchange. After the session on 19 June, Mercator Medical’s shares advanced to the prestigious mWIG40 index. Moreover, in June, the Company once again became the leader of GIP60, comprising the 60 largest manufacturing public limited companies with a predominant share of Polish capital.

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Mercator Medical S.A. based in Krakow is a manufacturer and distributor of single-use medical, protective and household gloves, medical dressings as well as medical nonwoven products. On these markets it is one of the most important players in Poland and a significant entity on the international scene. The company’s history dates back to 1989.

Thanks to the construction of the second gloves factory in Thailand (the last production line commissioned in September 2018), the company’s production capacity increased by 150% – to over 3 billion gloves annually. With the distribution of gloves purchased from external suppliers, the Mercator Medical Group’s total sales potential can be estimated at over 7 billion gloves per year. The company conducts direct distribution in Poland, Russia, Romania, Czech Republic, Ukraine, Hungary and Slovakia, as well as in Germany and Italy. Mercator Medical operations have a global reach – local distributors sell its products in over 70 countries on five continents, including the American market, and the company focuses on the ongoing geographical expansion.

Since November 2013, Mercator Medical S.A. shares are listed on the regulated market at the Warsaw Stock Exchange. More information: www.mercatormedical.eu