Growth at every level of the income statement - The Mint of Poland Group reported results for 2023

22 march 2024

The Mint of Poland Group summarized 2023 with revenues from sales exceeding PLN 1.2 billion. Operating profit was more than doubled year-on-year and amounted to PLN 110.6 million. The EBITDA result amounted to PLN 130.6 million (PLN 60 million more than a year earlier).

The results generated in 2023 confirm the company's strong position and financial stability. Apart from the sale of investment gold, which is highly dependent on the geopolitical situation, the Mint of Poland reported increases in the remaining areas of monetary activity, as well as in the Electronic Payments and Real Estate Development segments. The increase in the Group's cash flow, was related, in addition to generating solid EBITDA levels, also to optimization in working capital management.

Mint products

The revenues in Mint's core business segment amounted to PLN 858.7 million in 2023 (PLN 1,060.2 million in 2022). The segment result amounted to PLN 43 million (PLN 57 million in 2022) and EBITDA to PLN 49.7 million (PLN 62.7 million a year earlier).

During the reporting period, the Mint of Poland continued its stable cooperation with the National Bank of Poland, which resulted in a collective order for the production and delivery of circulation coins for the year 2024 with a total value of over PLN 131 million. The company also rapidly developed its operations in foreign markets (winning tenders in Uruguay, the Dominican Republic, Argentina, Guatemala, Armenia, Colombia, Albania, Nicaragua, Turkmenistan, Georgia and Costa Rica). In 2023, the Mint won 11 tenders for the production and supply of circulation coins, collector coins and investment products. Some of these were completed last year, while others will be implemented or continued this year.

In 2023, the Mint of Poland was very active in developing its investment product distribution network - it opened five sales offices for gold, as well as Europe's most modern mint online shop for investment, collectable and gift products. Confidence in the brand was reflected in sales results - for another consecutive year, private label investment products accounted for more than 60 per cent of the value of all gold sales. Nearly 1.8 tons of gold went to the customers of the Mint of Poland in 2023, mainly in the form of bars and bullion coins. Proprietary gold ducats and silver thalers with the image of Kazimierz Pułaski proved to be a bestseller.

Electronic payments

In the analyzed period, revenues of the Electronic Payments segment increased by more than PLN 17 million compared to those reported a year earlier (PLN 229.6 million in 2023 vs. PLN 212.1 million in 2022). The segment result increased by PLN 4 million (PLN 4.1 million in 2022). The segment's EBITDA result amounted to PLN 18.7 million (PLN 14.3 million in 2022).  The nominal gross value of turnover realized by Mint systems increased year-on-year by almost PLN 60 million.

During the reporting period, the Mint of Poland completed the implementation of its proprietary Open Payment System in Poznan and the surrounding municipalities. Mobile ticket validators were installed in 740 public transport vehicles.

Currently, the Mint of Poland is in the process of technical and operational dialogue related to the prospect of implementing a modern ticketing system in Warsaw.

Realizing the idea of the smart city, the Mint of Poland takes special care of the security of transactions, as confirmed by the successful passing of the PCI Data Security Standard certification audit once again.

Real Estate Development

During the reporting period, the segment's revenue was higher year-on-year by nearly PLN 135 million (PLN 10.2 million in 2022). The segment result was higher by nearly PLN 77 million (PLN -15 million in 2022). EBITDA result was PLN 64.5 million (PLN -12.2 million in 2022).

The increase in revenues in the real estate development business, compared to the previous year, was mainly due to the completion of the final sale of 160 flats within the 'Bulwary Praskie' project with a total usable area of almost 11,000 m². So far, buildings S1, S2-S3, R2, R3 and building R1 have been completed as part of the 'Bulwary Praskie' project. Currently, construction of 10 buildings within the "Bulwary Praskie" development is underway in the NOP quarters with a total of 747 flats. In September 2023, sales of units in quarters O and P began. By the end of December, 123 development agreements and 17 reservation agreements had been signed. The NOP quarters are scheduled to be completed in the second quarter of 2025. At the same time, in December 2023, an application was submitted to renew the proceedings to obtain a building permit decision for quarters IJKL.

An important event in the real estate development business was the bid to purchase 50 per cent of the shares in the "Mennica Legacy Tower" project during the reporting period.  The transaction did not take place although the Office of Competition and Consumer Protection consented to the concentration. In fact, by the date of expiry of the offer, Mennica Polska had not received information on the distribution of funds from the transaction between the sellers, taking into account the repayment of Golub GetHouse bondholders. This was a key condition for the completion of the transaction.