According to previously presented estimates, Mercator Medical Group closed the first quarter with sales revenues of PLN 147.7 million compared to PLN 130.9 million a year earlier. EBITDA surged to PLN 5.4 million from a loss of PLN 4.2 million in Q1 2024. Net profit increased to PLN 30.6 million from PLN 10.8 million in the previous year. The Management Board of Mercator Medical will recommend to the General Meeting of Shareholders to allocate part of the 2024 profit, amounting to PLN 15 million, either for dividend payment or for implementing a share buyback program aimed at cancellation, subject to the shareholders’ approval.
“The first quarter of 2025 was a period marked by clear uncertainty in the market environment, caused by the U.S. administration’s decision to change customs policies on imports from Asia. Disruptions to established distribution channels and sudden volume shifts required rapid decisions and great flexibility in our operational and commercial activities. In production, we recorded higher selling prices to the U.S. following the relocation of orders from China to Thailand. Meanwhile, in distribution, we faced strong price pressure and volatility in orders due to speculative activities among wholesale clients. We maintained operational stability and effectively achieved our set targets, as confirmed by both revenue growth and a marked improvement in EBITDA,” commented Monika Żyznowska, CEO of Mercator Medical S.A.
The introduction of increased U.S. tariffs on disposable gloves imported from China in Q1 2025 led to a significant global redistribution of orders towards manufacturers in Thailand, Malaysia, and Vietnam. At the same time, the oversupply of gloves from China was redirected to other markets, causing strong price pressure, notably in Europe, which affected the distribution channel.
Mercator Group responded flexibly to market changes, resulting in a 13% increase in sales revenue in Q1 2025 compared to the same period in 2024. Year-on-year sales growth was particularly strong in the U.S. market, with continued improvement in Western Europe. Mercator Medical simultaneously achieved significantly higher sales margins on products and goods. Notably, the Group recorded a sharp increase in EBITDA to PLN 5.4 million compared to a PLN 4.2 million loss in Q1 last year. Net profit also improved significantly to PLN 30.6 million, influenced partly by a change in deferred tax calculation following an individual tax interpretation concerning foreign exchange differences on loan repayments and currency conversions.
The improvement in financial metrics prompted Mercator Medical’s Management Board to recommend allocating part of the 2024 profit to a dividend payout of PLN 1.61 per share, totaling PLN 15 million, or to a share buyback program under terms identical to the previous one. The remaining profit will be transferred to the reserve capital.
“Ongoing market uncertainty encourages us to manage capital efficiently. Considering the interests of the company and its shareholders, we recommend distributing part of the 2024 profit either as dividends or a dividend share buyback. The final decision on the form of profit distribution will be made by shareholders at the General Meeting. Both options have their advantages and provide value growth for investors,” emphasized Mariusz Popek, Member of the Management Board of Mercator Medical S.A.
