MERCOR AFTER Q3 2023/2024

STRONG REVENUE FIGURES AND YEAR-ON-YEAR INCREASE IN NET PROFIT

After the first nine months of FY 2023/2024 (1 April − 31 December 2023), the MERCOR Group, a leader of the European fire protection market, reported revenue of PLN 446.3m (down 4.9% year on year). EBIT for the period was PLN 48.1m and EBITDA reached PLN 62.4m. Net profit went up by as much as 24.9% year on year, to nearly PLN 46m. The Company’s net profit was boosted by an income tax refund of PLN 10.5m, including interest, which took place in the second quarter.

In the third quarter of FY 2023/2024 alone, the Group’s revenue amounted to PLN 145.4m (down 13.1%), and net profit was close to PLN 14m (up 2.7%).

“We are satisfied with our financial performance after the first nine months of the financial year 2023/2024. Importantly, we maintained high revenue. As a result of our efforts, our net profit in the third quarter went up by 2.8% year on year. Also the cumulative net profit after the first three quarters of the year was higher than in the same period last year. I should mention the non-recurring event from the second quarter when, as a result of concluded proceedings, we received a refund of income tax paid, along with accrued interest, which increased the Group’s net profit by approximately PLN 10.5m,” said Krzysztof Krempeć, President of the MERCOR S.A. Management Board.

After the first three quarters of FY 2023/2024, revenue generated by the Group on the domestic market accounted for 51.6% of total revenue, having reached almost PLN 230.2m. PLN 216.1m, or 48.4% of total revenue, was contributed by foreign markets.

“In the third quarter and after the first nine months of the financial year 2023/2024, we recorded slightly better sales in Poland than in foreign markets. At the same time, some of our markets recently reported significant sales increases. This is mainly the UK market, where after the first three quarters of the financial year we recorded a revenue growth of nearly 68%, as well as the Romanian market, where in the same period our revenue grew by more than 60%. We are steadfastly dedicated to our international expansion, prioritising the Group’s innovation and adopting a flexible, individualized approach to meet customer needs. One example of our innovation efforts is the development of mcr Tech Lab, a Group company that works on 4.0 industry solutions,” said Krzysztof Krempeć, President of the MERCOR S.A. Management Board.

Stable order levels

“The order pipeline within the Group is consistent with our expectations. We estimate that the value of orders we will secure in the first quarter of the calendar year 2024 will be lower year on year. This is due to a reduced number of buildings in the final stage of completion (which is the time when we proceed to work) due to delays caused by winter weather conditions (which made it impossible to work on roofs) and a very high base last year caused by several exceptional orders during that time. Based on plans and information from our partners, design and construction companies, a market revival can be expected in the second half of the year. This should result in a resurgence of higher order levels,” said Krzysztof Krempeć, President of the Mercor S.A. Management Board.

RESULTS OF THE MERCOR GROUP AFTER Q3 2023/2024:

* The net profit was affected by a tax refund of approximately PLN 10.5m, including interest, which took place in the second quarter of the financial year 2023/2024.