MERCOR CLOSES FINANCIAL YEAR 2022/23

DOUBLE-DIGIT REVENUE AND EARNINGS GROWTH

The MERCOR Group, a manufacturer of advanced technology solutions and a leader of the European market for passive fire protection systems, recorded a strong increase in key performance figures for the financial year 2022/23 (April 1st 2022 – March 31st 2023). The Group’s revenue rose by 26.7% year on year, to PLN 628.4 million. The Group also improved its operating performance. Net profit amounted to PLN 47.2 million (+45.4% y/y), EBIT reached PLN 68.8 million (+56.1% y/y), and EBITDA came in at PLN 87.6 million (+50.1% y/y).

For Q4 of FY 2022/23 alone, the Mercor Group booked a 16.2% year-on-year increase in revenue, to more than PLN 159 million. Net profit for the period was close to PLN 10.4 million, compared with PLN 7.4 million a year earlier, an increase of as much as 40.8% year on year, EBIT amounted to PLN 13.8 million (+27.9% y/y), and EBITDA came in at over PLN 19 million (+32.9 y/y).

“We have closed out a successful financial year (2022/2023), when – besides strong revenue growth – we saw an improvement in profit margins across key areas of our business. The past financial year witnessed growing demand for our services driven by increasing technical sophistication of building structures and industrial facilities. Industrial technologies require more and more innovative protections characterised by a high degree of complexity, and we provide exactly such solutions to our partners,” said Krzysztof Krempeć, CEO of MERCOR S.A.

In FY 2022/23, revenue generated by the Group on the domestic market accounted for 50.2% of total revenue, having reached PLN 315.5 million. 49.8% of total revenue was derived from foreign markets.

“In our industry, it is crucial to diversify the business and derive revenue from sales on multiple markets. If only for this reason, a potential economic slowdown in any single country or region has a lesser impact on Mercor, and sometimes it can even be a source of market opportunities, favouring suppliers ready to sell at more competitive prices. A noteworthy development we posted for the full year was a marked increase in foreign sales, of nearly 26%. Sales growth on the Polish market during the period was also in double digits, exceeding 27%. We are particularly pleased with the vigorous growth of DFM Doors, one of the youngest Group companies, active in the fire separation segment, which delivered the second best revenue for the period,” noted Krzysztof Krempeć, CEO of MERCOR S.A.

MERCOR GROUP’S FINANCIAL HIGHLIGHTS FOR FY 2022/23:

The Mercor Group is also developing new business areas, namely that of energy storage systems, the segment managed within the Group by Elmech-ASE, and smart fire protection solutions (Fire Safety 4.0), implemented by the recently established MCR Tech Lab.

“Over the past year, we had plenty of good news from MCR Tech Lab, with a growing number of new project wins, involving innovative, customised solutions tailored to individual needs. We expect the share of new companies in the Group’s revenue to increase going forward,” said Krzysztof Krempeć, CEO of MERCOR S.A.

 Recorded revenue growth

“It is worth noting that the Group’s current situation is satisfying. The value of new orders received by the Group in May 2023 was about PLN 53 million, compared with PLN 47.3 million in the same period last year, an increase of 12%. In the period from December 2022 to May 2023, the Group secured new orders worth about PLN 302.2 million, compared with PLN 275.6 million in the same period a year earlier, an increase of 10%,” commented Krzysztof Krempeć, CEO of MERCOR S.A.