The Mint of Poland reported results for the first three quarters of 2023

31 october 2023

The financial stability and business diversification potential of the Mint of Poland are confirmed by its financial results for the first three quarters of this year. The Group achieved higher profits both at the level of profit on sales and at other levels of the income statement, despite the strong base of the previous year. Significant increases were recorded in Real Estate Development and Electronic Payments. Liquidity remained at a very good level during the period.

In the Mint of Poland Group's overall results for the first nine months of this year, revenues from sales amounted to PLN 819.6 million. The largest year-on-year increase in revenue (+126%) and profit (from PLN -16 million to PLN 5.6 million) was recorded in the Development segment. This was due, among other things, to the fact that the final notarial deeds for the Bulwary Praskie project were signed in September.  At the end of the period, 18 apartments had been handed over.

The Group's profit on sales amounted to PLN 42.2 million (PLN 41 million in Q1-3 2008) and the financial result was PLN 53.9 million (PLN 20.1 million in Q1-3 2008). EBITDA amounted to PLN 60.5 million (PLN 54.9 million in Q1-Q3 2022 r.). The Group increased all profitability ratios in comparison with the first three quarters of the previous year, which was the result of an improvement in the profitability of the in the Electronic Payments segment, the recognition of revenues from the sale of apartments in the Bulwary Praskie project and a decrease in the share of revenues from the sale of investment products, which are characterised by lower margins.


Mint Products

Mint segment revenues totalled PLN 629.3 million (vs. PLN 842.4 million in Q1-Q3 2002).The segment result was PLN 33.6 million in the reporting period (vs. PLN 48.7 million in in Q1-Q3 last year). EBITDA amounted to PLN 38.5 million (PLN 53 million in Q1-Q3 2022).

Due to the unusually high base in the same period last year, related to the above-average sales of investment gold as a result of the outbreak of war in Ukraine, the current period has seen lower results and revenues in the Minting segment compared to the same period last year.

 Since the beginning of the year, almost 1.3 tonnes of yellow bullion have been delivered to the Mint of Poland's customers, mainly in the form of investment products. Gold bars of 0.25 and 0.5 grams were added to the product range. The issue of gold ducats and silver thalers bearing the image of General Kazimierz Pułaski was met with a great deal of interest.

In the area of coins, the Mint of Poland recorded higher sales and results than in the previous year. In the third quarter of this year, the Mint continued its stable cooperation with the National Bank of Poland and was active on foreign markets, submitting 15 tenders. 8 procedures were won - the Mint of Poland will supply its products to Colombia, Georgia, Uruguay, Argentina, Armenia, Turkmenistan and Albania.


Electronic Payments

Revenues in the Electronic Payments segment increased by more than PLN 16 million in the reporting period (from PLN 153.4 million after Q3 2022 to PLN 169.5 million in the same period in 2023). The segment result was PLN 4.3 million higher than a year earlier (PLN 6.6 million in Q1-Q3 2023 vs. PLN 2.3 million in Q1-Q3 2022). EBITDA amounted to PLN 14.6 million (PLN 10.1 million in Q1-Q3 2022).

The gross nominal turnover in the electronic payments segment increased by almost PLN 60 million compared to the previous year. An important event within the segment was the announcement by the Public Transport Authority of Warsaw, after the end of the reporting period, of a procedure in which the Mint of Poland is interested. The project involves the design, implementation, introduction, and subsequent maintenance of a new ticketing system in the capital.


Działalność deweloperska

In the first three quarters of this year, the segment's revenues amounted to PLN 20.8 million, an increase of PLN 11.6 million compared to the same period last year. The segment result was PLN 5.6 million (PLN -16 million in Q1-3 2002). The EBITDA result was PLN 7.7 million (PLN -14 million after nine months).

In the Bulwary Praskie project, the Mint of Poland transferred ownership of 18 units in buildings S2, S3, R2 and R3 during the reporting period. The construction of the R1 building is in its final stage (142 residential units and about 405 m2 of commercial space), and the construction of the N, O, P quarters (747 residential units and about 1.3 thousand m2 of commercial space) is continuing. Sales of apartments (in terms of signed development agreements or preliminary sales agreements) in buildings R2-R3, S2-S3 and R1 at the end of September 2023 amounted to 320 signed development agreements, representing more than 98 per cent of all apartments in these buildings. The sale of apartments in quarters O and P has started.

In the Mennica Legacy Tower project, during the reporting period the Mint of Poland received the last of the required declarations of acceptance for its offer to purchase half of the shares in the office building, made on 11 July. This allowed the due diligence process to commence. The value of the offer is €135 million for 50% of the shares and the assumption of more than €110 million of debt. The price for the shares, the price for the shares and the amount of repayment of the bonds issued by Golub GetHouse will be confirmed in the final offer of Mint of Poland.