Mercator consistently pursues the its strategic objectives

The Krakow-based manufacturer of medical gloves shows very good results, which are the result of a consistently implemented development strategy. The semi-annual report published on 31 August 2015 confirms the previously visible positive dynamics of results of the Group. The company’s revenues reached PLN 100 million, compared to PLN 76 million in 1H 2014. EBITDA was PLN 10.5 million, which means an increase of 47% YOY, while the net result in a comparable period was PLN 5.7 million (PLN 3.9 million in a comparable period of the previous year).

The investment to extend the gloves factory in Thailand which was completed in March contributed to the doubling of revenues on the sales of products. This investment increased the production capacity of the factory from 40 million to over 100 million medical gloves per month. The launch of all production lines brought the improvement of production margins, which increased by 1.6 percentage points YOY. The completed project allows to compete more efficiently on global markets, including the US market.

“We give you a report that we are proud of. Another six months of hard work has passed for us, which reinforced our position on the market. We have been working to reach new customers and expand our collaboration with existing customers. The effects are positive, as demonstrated by the presented sales figures exceeding expectations. Our successes would not be possible without the persistent, long-standing, consistent efforts to build trust in Mercator Medical among our customers and to build a competitive advantage on the market”, says Wiesław Żyznowski, President of the Management Board, Mercator Medical S.A.

As regards the sales of goods, i.e. single-use medical gloves, dressings and nonwovens purchased from external suppliers, the Group also significantly increased its sales - by as much as 14%. Here, however, the margins decreased.

One of the completed objectives for 2015 in distribution was the launch of direct sales in Russia and increasing its dynamics in the Czech Republic and Slovakia. Export sales increased to the USA, to former USSR countries other than Russia, as well as to the Balkans. We also saw an increase in the market share in Hungary and Romania, and the Group also managed well on the currently difficult Ukrainian market.

“In 2015, we extended the Group’s composition by adding an American subsidiary Mercator Medical LLC based in the USA. This was a very good business decision which extended the sales area for the increased production volumes of medical gloves in Thailand. The company exports increasing quantities of the factory’s products to the American market”, says Wiesław Żyznowski, PhD, President of the Management Board, Mercator Medical S.A.

The main strategic objectives of the Issuer’s Capital Group for the remaining quarters of 2015 are to reinforce its position as a leader on the domestic market, to become a leading distributor in Central and Eastern European countries, and to expand on the global market, particularly in North American markets.

The company assesses its development prospects very positively, mainly due to discrepancies between health expenditures in developing countries – which are the main sales markets – compared to developed markets such as the United States or Europe. Along with the increase of those expenditures and better awareness of how to combat hospital infections, utilisation of single-use medical gloves which are the core of the Group’s offer, will grow. For similar reasons, the sale of dressings and nonwovens will also increase.

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Mercator Medical S.A. is one of the key players in Central and Eastern Europe on the market of single-use medical gloves. The assortment is complemented by nonwoven protective products such a single-use medical clothing and surgical drape sheets. In response to customer needs, dynamically developing in the medical dressings segment.
Products offered by Mercator Medical S.A. are available in more than 50 countries on 5 continents. The portfolio includes more than 120 products. Mercator Medical’s customers are healthcare units, industrial plants, retail chains and pharmaceutical wholesalers. Mercator Medical has its own manufacturing facility in Thailand, a branch in Hungary and subsidiaries in Romania, Ukraine, the USA and Russia, among others.