MERCOR POSTS SOLID REVENUE FOR Q1 2024/2025
MERCOR POSTS SOLID REVENUE FOR Q1 2024/2025 DESPITE TOUGHER MARKET CONDITIONS
The MERCOR Group, a leader in the European fire protection market, reported revenue of PLN 137.2 million for the first quarter of the 2024/2025 financial year from 1 April to 30 June 2024, marking a 9.8% drop year on year. Net profit for the quarter was PLN 6.5 million, with EBIT at PLN 10.3 million and EBITDA at PLN 15.2 million.
‘The first-quarter 2024/2025 results were impacted by lower order levels between December 2023 and March 2024, driven by more challenging market conditions, including a slowdown in new construction projects and delays in the disbursement of EU funds in the Polish market. Our strength lies in our product and geographic diversification, which has enabled us to pursue market opportunities despite these challenges, resulting in a higher share of export sales in our overall revenue. At the same time, we maintained a solid gross margin, which stood at 26.7% for the quarter, compared with 25.4% in the same period last year and 26.06% for the full year 2023/2024,’ noted Krzysztof Krempeć, President of the Management Board of MERCOR S.A.
In the first quarter of 2024/2025, the Group’s domestic market revenue accounted for 46.9% of total revenue, reaching PLN 64.4 million. Sales in foreign markets amounted to PLN 72.9 million, representing 53.1% of total revenue.
Solid order levels at the start of the financial year
‘In the first months of the current financial year, the value of orders we acquired returned to satisfactory levels. From April to July, we secured contracts totalling PLN 204.2 million, comparable to the PLN 202.8 million secured in the same period last year, despite a more challenging market environment than in 2023. While the market remains difficult, we are optimistic that new construction projects will be initiated in future periods, strengthening the market we operate in,’ added Krzysztof Krempeć.
RESULTS OF THE MERCOR GROUP FOR THE FIRST QUARTER OF THE 2024/2025 FINANCIAL YEAR:
|
PLN '000 |
Q1 2024/2025 |
Q1 2023/2024 |
Change |
|
|
Revenue |
137,230 |
152,206 |
-9.8% |
|
|
Foreign sales |
72,867 |
77,455 |
-5.9% |
|
|
Domestic sales |
64,363 |
74,751 |
-13.9% |
|
|
Gross profit |
36,642 |
38,682 |
-5.3% |
|
|
Gross profit margin (%) |
26.7% |
25.4% |
+1.3pp |
|
|
EBITDA |
15,233 |
20,489 |
-25.7% |
|
|
EBITDA margin |
11.1% |
13.5% |
-2.4pp |
|
|
EBIT |
10,397 |
15,523 |
-33.0% |
|
|
EBIT margin (%) |
7.6% |
10.2% |
-2.6pp |
|
|
Net profit |
6,548 |
12,649 |
-48.2% |
|
|
Net profit attributable to owners of the parent |
6,068 |
11,733 |
-48.3% |
|
|
Net profit margin (%) |
4.8% |
8.3% |
-3.5pp |