Mercator Medical estimates results for Q1 2023

Like the entire disposable gloves industry, the Mercator Medical Group, a manufacturer of disposable gloves and distributor of single-use medical materials, was affected by the difficult market situation. This, in combination with a year-on-year drop of revenues, led to a decrease of estimated financial results.

Financial data:

*Preliminary estimated results published in the current report no. 15/2023

The Mercator Medical Group published preliminary estimated data for the period from January till March 2023. According to these data, the oversupply of disposable gloves on the market led to a decrease of consolidated revenues by 17% y/y and by almost 4% q/q (to 113m PLN). In the first quarter of 2023, the Mercator Group also recorded an estimated loss of over 34m PLN on the EBITDA level and an estimated net loss of over 22m PLN with positive results on these levels in the previous year and strongly negative values in the previous quarter, which were largely due to write-downs of non-cash production assets.

‘Because of what we have already indicated, that is, the lack of breakthrough on the global market of disposable glove manufacturers, our results were again well below our ambitions. We have noticed some favourable tendencies leading to the restoration of margins in the distribution segment, but it is still too early to speak of a significant qualitative change in the perception of the market situation,’ comments Monika Żyznowska, Vice-President of the Management Board of Mercator Medical S.A.

At the end of March 2023, the estimated net cash and other financial assets of the Mercator Medical Group totalled 403.8m PLN.

The final financial results of Q1 2023 will be published in the interim report for this period on 30^th May.

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Mercator Medical S.A., based in Kraków, is a manufacturer of disposable gloves and a distributor of single-use medical materials. 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.

The Mercator Medical Group has a production centre in Thailand and distributes, among others, products of external suppliers. It operates on an international scale, selling products through its own distribution companies and via external local distributors in a few dozen countries.

Since November 2013, Mercator Medical S.A. shares have been listed on the regulated market at the Warsaw Stock Exchange. In March 2021, they were included in the Polish main stock index WIG20; since March 2022, they have been present in the mWIG40 index. For more information, please contact: www.mercatormedical.eu