The company reported excellent results for 2020. The entire unit profit may go to the share buyback program. The group is also considering developing a new business.
Mercator Medical is a manufacturer of gloves. The increase in demand for these products, caused by the pandemic, translated into a strong improvement in the results of the listed company. Its capitalization has also increased dramatically.
In 2020, the group’s revenues amounted to PLN 1.83 billion, EBITDA was PLN 1.07 billion, and the parent company’s net profit was PLN 930.2 million. For comparison: a year earlier, the group recorded PLN 539.7 million in revenues, PLN 24.6 million in EBITDA and PLN 2.3 million in net loss.
‘The company’s management board adopted a resolution recommending the general meeting to create a reserve capital in the amount corresponding to the total profit (standalone) for 2020. There are plans to buy back shares. According to the management board’s proposal, the acquired shares would then be redeemed through a reduction of the share capital. The Management Board recommends that the purchase price of the treasury shares should not be lower than PLN 400 and higher than PLN 770. At the end of the session on Wednesday, the Mercator share had to be paid PLN 391 after a 1.5% drop.
‘In 2021 and in the following years, we intend to transfer a large part of the profits to our shareholders,’ Wiesław Żyznowski, president and majority shareholder of Mercator.