Mercator Medical Group estimates Q1 2021 results

The Mercator Medical Group, a manufacturer of disposable gloves and a distributor of single-use medical materials based…

The Mercator Medical Group, a manufacturer of disposable gloves and a distributor of single-use medical materials based in Krakow, has published preliminary estimated results for the first quarter of 2021. Over 300 million PLN of EBITDA and almost 290 million PLN of net profit means the best Q1 result in history.

Financial data:


Q1 2020

Q1 2021*



PLN million

PLN million













EBITDA margin



+37.4 pp


Net profit/loss





Net cash






*as per data in the Current Report no. 21/2021

In Q1 2021, the Mercator Medical Group earned around 287.4 million PLN of net profit (+1,293% y/y) with 552.1 million PLN of sales revenues (+172% y/y), also significantly increasing the result and margin on the EBITDA level – respectively by 758% to 302.8 million PLN and by 37.4 pps to almost 55%. This means that the last quarter’s estimated results are many times higher than the annual results for the years preceding 2020. At the same time, they are lower than in the record-breaking fourth quarter of last year, when the Mercator Medical Group generated almost 350 million PLN of net profit and over 405 million PLN of EBITDA.

Since last autumn, we announced that the increase of supply expected in the coming months and the expected stabilisation of the pandemic situation may be followed by market decreases of glove prices, potentially from Q2 2021. The first signs of this trend occurred earlier, in March, on the vinyl and natural latex gloves market. We expect further price pressure during the current quarter. However, the results of the first quarter were certainly more dependent on the capriciousness of the market; glove buyers made purchasing decisions more cautiously, expecting a price decrease. Therefore, sales volumes fell short of our expectations and ambitions, affecting the values of estimated results,” says Witold Kruszewski, Member of the Management Board for Finance in the Mercator Medical Group.

The final financial results along with detailed data will be included in the Mercator Medical Group’s interim report for Q1 2021, the publication of which is scheduled for 17th May this year.

It is also worth noting that on Tuesday, 20th April 2021, the General Meeting was held, during which shareholders of Mercator Medical adopted a resolution whereby the entire individual net result for the year 2020 (312 million PLN), accounting for one third of the consolidated result, was appropriated for the purchase of own shares in the price range of 500–770 PLN per share. As a consequence of this decision, shareholders will be officially invited to sell shares – the price, schedule and detailed solutions will be presented upon conclusion of an agreement with the brokerage house that will handle the ‘dividend’ purchase of own shares. The remaining part of consolidated profit (two thirds) will be allocated for the implementation of developmental investments – i.e. the expansion of the scale of distribution activities in Europe and on selected non-European markets, the increase of production capacity (the first production lines in the third glove factory under construction should be launched at the end of this year), the introduction of new assortments, market segments and sales methods, along with the development of new business in synergy with existing operations that may open new opportunities for the Mercator Medical Group, particularly in terms of innovation and scalability.

It is worth mentioning that as a consequence of the growing interest in the Mercator Medical Group among investors, which manifests itself in the capitalisation of the company and the liquidity of its shares, the company has been included in the MSCI Small Caps index since December 2020, and Mercator Medical’s shares advanced to the main prestigious WIG20 index on the occasion of the annual index revision in March this year. The company and its managers are also recognised and appreciated in many competitions and contests, where dynamic business growth, geographical expansion and a strong increase of capitalisation on the WSE are emphasised. The company was announced the winner of the ‘Stock Exchange Company of the Year’ (Giełdowa Spółka Roku) survey of capital market participants organised by Puls Biznesu in the ‘Success 2020’ (Sukces 2020) category, and it was also awarded the title of Champion of the WSE (Mistrz GWE). Mercator Medical and Wiesław Żyznowski, PhD, founder and president of the company, received the title of the ‘Family Ambassador of the Year’ (Rodzinny Ambasador Roku) from Forbes magazine. Mercator Medical was awarded a distinction in the Foreign Investment Pioneer (Pionier Inwestycji Zagranicznych) category of the competition ‘Polish Company – International Champion’ (Polska Firma – Międzynarodowy Czempion) organised by PwC Polska and Puls Biznesu. The company debuted in the 22nd edition of the ‘Lista 500’ ranking compiled by Rzeczpospolita and received the Eagle of the Republic award (Orzeł Rzeczpospolitej) in the Debut category; in addition, it was awarded the Investor Without Borders title (Inwestor bez granic) granted annually as part of the European Economic Congress in Katowice to the most effective Polish investors expanding internationally.

At the same time, since the beginning of the pandemic, the Mercator Medical Group 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 over 1.8 million examination gloves, 50,000 face masks and 3,000 non-woven products to almost 70 different institutions, mainly hospitals, nursing homes, hospices and foundations, as well as to the Police Headquarters, the Material Reserves Agency and the Ministry of Health. At present, the company is carrying out the #TogetherAgainstTheVirus (#WspólniePrzeciwWirusowi) campaign to support medical and care facilities by donating personal protective equipment from its own portfolio. A similar initiative is being pursued by the Group’s production company Mercator Medical (Thailand) Ltd., which donated latex gloves to some Thai hospitals and points of local administration as part of anti-SARS-CoV-2 measures. For more information on the Group's non-financial activities, see the summary non-financial report for the year 2020.

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