Mercator Medical S.A. increases revenues in 1H 2014

The company increased its revenues by 8% YOY to the level of PLN 76 million, whereas its net profit was PLN 3.8 million. EBITDA reached PLN 7.2 million and increased by PLN 0.1 million (2%) YOY, and in Q2 2014 compared to Q1 the increase was PLN 0.9 million (29%).

In 1H 2014, the Mercator Medical Group increased sales revenue by more than 8%.

To a large extent, the increase is attributable to increased revenues on the sales of goods by 14%. Increased sales of goods was achieved in all assortment segments (especially gloves). The company saw the highest increase in sales in Russia, Saudi Arabia, Ukraine and Romania.

Despite increased production capacity at Mercator Medical (Thailand) Ltd, revenues on the sales of products decreased by nearly 8%. This is mainly due to the continuing fall in the prices of natural latex.

In Q2 2014, EBITDA improved significantly. After Q1 2014, EBITDA was lower by PLN 0.4 million compared to the same period in the previous year, whereas at the end of the first half of the year it reached PLN 7.2 million and increased by PLN 0.1 million (2%) YOY.

In the reporting period, the company earned a net profit of more than PLN 3.8 million, which is comparable to the net profit obtained in the first half of the previous year.

“Given the falling prices of natural latex – the main raw material for our production – and the significant devaluation of the hryvnia, I can say that we are pleased with the results we reached in the first half of the year. We achieved higher EBITDA than in the previous year, in much more difficult market conditions, incurring higher operating and investment costs”, said Wiesław Żyznowski, President of the Management Board, Mercator Medical S.A.

In January 2014, a new production line at a factory owned by Mercator Medical (Thailand) Ltd. was launched. This increased the company’s production capacity from 40 to 56 million latex gloves per month. At the same time, the company is renovating other production lines so that the factory will eventually be able to manufacture 100 million gloves per month.

The distribution network is also growing. In March 2014, the Group launched its own distribution
in the Baltic countries and set up a commercial presence in the USA.

“We are increasing the production capacity at our factory in Thailand, and we are developing a sales network in other countries. Our objectives for the coming years are: to reinforce our 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”, added Wiesław Żyznowski.