Mercor Group's Revenue and Operating Cost Breakdown: A Closer Look
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Revenue
About half of revenue is generated domestically. The largest export markets are Russia, Spain, Hungary, the Czech Republic and Slovakia. These foreign markets together account for over 30% of Mercor's total revenues. The Company also marks its presence on more distant markets, including Asia, Africa, and South America.
Operating costs
In the structure of Mercor's operating costs, the cost of materials and energy consumption is definitely dominant, which accounts for about half of the costs by type. External services account for about one-fifth of operating costs, and salaries for about 15%. The cost structure in the period from 2019/20 to 2022/23 did not change significantly.
The main component of material consumption costs are industrial metals such as steel and aluminum. The Company manufactures its products on its own, raw materials come to the company in sheets. Volumes and prices are usually set quarterly in advance. Of the main cost components, Mercor buys actuator for opening the flaps, but does not rule out starting their own production in the future. In the past financial year, the Company used approx. tonnes of steel, 700 tonnes of polycarbonate, 700 tonnes of aluminum profiles and over 500 tonnes of aluminum sheet.
