Mercator Medical estimates PLN 391 million in EBITDA in Q3 2020

The Mercator Medical Group, a manufacturer of medical gloves and a distributor of single-use medical materials based in Krakow, has presented preliminary estimated results for Q3 2020. They confirm the continuation of the positive trends already observed in Q1. The company beat successive records – according to the estimates, it exceeded PLN 608 million in revenues, generating nearly PLN 391 million in EBITDA result and PLN 356 million in net profit.

Selected consolidated financial results:

* preliminary, estimated results published in the current report No. 48/2020
** cash less debt

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 half of the year, the Mercator Medical Group multiplied its profits. The published preliminary estimated results for Q3 indicate further strongly positive dynamics of results. Consolidated sales increased to over PLN 608 million, which means that it was more than four times higher compared to the last year. At the same time, in the period of July-September 2020, the Mercator Medical Group earned an estimated EBITDA result of PLN 391 million, which yielded a net profit of over PLN 356 million. Although these are absolutely record-breaking results, the company still sees room for dynamic growth.

“In Q3, we continued to take advantage of favourable market trends. We anticipated a slowed increase in the price of gloves in the global market and, indeed, we experienced it for part of Q3. However, further development of the pandemic situation caused continued price increases, which we welcome and which allows us to be optimistic about the dynamics of the results in subsequent periods” says Witold Kruszewski, Member of the Management Board for Finance at Mercator Medical S.A.

“We also owe our excellent results to the effectiveness of the international team at the Mercator Medical Group and to our unique selling points on the market. At the same time, successive records motivate us to continue our hard work”, he adds.

“It should be stressed that in addition to maximising results for the Mercator Medical Group, the generated cash is important. According to preliminary estimates, at the end of September the Group had over PLN 381 million net cash (cash on accounts less financial debt). At the same time, it is worth pointing out that at the end of Q3 all investment loans (over PLN 75.5 million, current report no. 44/2020) were repaid.

The final financial results along with the details will be included in the Mercator Medical Group’s interim report for Q3 to be published on 16 November.

It is worth noting that following the growing interest of investors in the Mercator Medical Group, which is reflected in the company's capitalisation and liquidity of its shares, after the session on 19 June 2020, securities of Mercator Medical advanced to the mWIG40 index, and since 5 October, the Warsaw Stock Exchange introduced the company’s securities futures to trading. At the same time, since the beginning of the pandemic, this Krakow-based company has been actively involved in the fight against COVID-19 by donating personal protective equipment from its own portfolio to numerous medical and care facilities. To date, Mercator Medical has already donated 1.6 million examination gloves and 50,000 face masks to 55 different institutions, mainly hospitals, nursing homes, hospices and foundations – including the Foundation for the Development of Nursing (Fundacja Rozwoju Pielęgniarstwa), the Saint Dominic Nuns Foundation (Fundacja Sióstr św. Dominika) – as well as to the Police Headquarters, the Material Reserves Agency and the Ministry of Health.