Gross profit margin rose to 69.2% of turnover, while at the same period of time during the previous year it was 57.0%
Mermeren figures are moving onwards and upwards, justifying the stock rise during the last months. Mermeren further increased its profit margins, boosted turnover, increased its net profits and all this without borrowing and with high performance in operational cash flow that has boosted cash.
More specifically, turnover in the first half stood at 19.1 million euros against 12.3 million at the same period of 2017, achieving an increase of 55.2%. Meanwhile, gross profit margin rose to 69.2% of turnover, against 57.0% in 2017.
As a result, the company’s gross profit stood at 13.2 million euros versus 7.0 million in the corresponding period of 2017. The company achieved EBIT of 12.1 million euros compared to 5.5 million in the corresponding period of 2017.
EBITDA amounted to 13.3 million euros compared to 6.6 million during the same period of 2017 and earnings after tax were 10.8 million versus 4.7 million euros.
In June 30, 2018, bank borrowing amounted to only 1.3 million euros while net borrowing was negative by 14.2 million euros due to exceptional cash flows.
Total liabilities amounted to 4.4 million euros, while cash amounted to 15.5 million, with operating cash flows rising to 10.5 million from 6.4 million. Equity amounted to 29.2 million euros.
For the second half of the year, the company’s management estimates a similar course to that of the first semester. If growth rates remain the same, net profits could exceed 20 million euros and even reach 25 million. In this case, the stock will trade at a margin of less than 10, as the valuation is 196 million euros.
It is noted that Stoneworks, which recently bought the listed company, holds 89.14% of the share capital following the public offer last March.
Mermeren’s results show the industry’s great potential, reflecting the strong demand from China, Arab Emirates and others and give an insight into the profits of other listed companies such as Iktinos Hellas.
Mermeren had 11.1 million euros sales to China from 3.3 million in the same period last year.