The Mercator Medical S.A. Group is growing strongly

In 2013, consolidated net revenues from the sales of products, goods and materials of the Mercator Medical S.A. Group amounted to over PLN 147 million compared to PLN 132 million in 2012. This means an increase of nearly 12%. The operating result also improved significantly (by 35%), reaching the level of PLN 11.6 million. This was due to both an increase in revenues and an improvement in the margin on sales of goods, which amounted to 25%.

The financial results in 2013 were affected by the implementation of the plan of expansion on foreign markets, including the Russian market, a reduction in raw material prices (natural latex) and a decrease in debt. EBITDA in 2013 was over PLN 14 million (increase of 28%) and reached 9.5% of sales revenues. This is the effect of an improvement in the operating result. In 2013, the net profit amounted to PLN 6.9 million, and its decrease compared to the previous year results from the one-off factor consisting in the recognition of a deferred tax asset in the previous year. Without taking this event into account, the Group’s consolidated net profit would be higher by approx. 30%. The Mercator Medical Group is at the stage of intensive growth. In the reporting period, the main direction of investment was to expand the single-use latex gloves factory in Thailand.

“2013 was a breakthrough year for us. In November, shares of Mercator Medical S.A. made a debut on the Warsaw Stock Exchange. We are glad that the capital market has accepted our business strategy with confidence”, says Wiesław Żyznowski, President of the Management Board, Mercator Medical S.A. The acquired funds collected in the amount of PLN 28 million will be used to finance extension of the factory in Thailand and to provide working capital. In January this year we launched the first of four new double production lines. This increased the factory’s production capacity from 40 to 56 million gloves per month. By the end of 2014, the remaining lines will be launched to manufacture up to 100 million gloves.

The strategic objectives of the Mercator Medical Group for 2014 and subsequent years also include: 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 countries.

“We evaluate our development prospects very positively, mainly due to the discrepancy between spending on health in developing countries, which are the main sales markets, compared to developed countries, such as the USA and Western European countries”, explains Żyznowski. “Along with the increase of those expenditures and better awareness of hygiene principles, utilisation of single-use medical gloves which are the core of our Group’s offer, will grow”.

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The Mercator Medical Group is a leader in Poland and one of the key players in Central and Eastern Europe on the market of single-use medical gloves. Mercator Medical has a production plant for medical gloves in Thailand. It operates globally in over 40 countries, offering approx. 120 own products. The dominant range are single-use gloves, which generate nearly 93% of revenues. The assortment offered by Mercator Medical is complemented by medical dressings and nonwoven protective products, such a single-use medical clothing and surgical drape sheets. Mercator Medical’s customers are healthcare units, industrial plants, retail chains and pharmaceutical wholesalers.