Results in H1 2023 confirm strong position of the Mint of Poland
Mint of Poland Group has summed up its performance for the first two quarters of this year. The reported results, after considering the high comparative base for the previous year, confirm the strong position and financial stability of the Group. Sales revenues reached PLN 570.4 million, net profit stood at PLN 36.4 million and EBITDA, including investments valued using the equity method, of PLN 48.4 million.
The high base for 2022 was related to record sales of gold following the outbreak of war in Ukraine. Preliminary sales of apartments in the "Bulwary Praskie" project, completed to date, were also not recognized in the H1 2023 financial statement.
In the reporting period, the revenues in the Mint’s core business segment reached PLN 453.6 million (vs. PLN 654.5 million in H1 2022). Segment posted a result of PLN 21.7 million and an EBITDA of PLN 24.9 million (vs. PLN 47.6 million in H1 2022).
In the first quarter of this year, the Group opened three new sales offices: in Gorzów Wielkopolski, Toruń and Łódź. The Mint also launched Europe's most modern online mint sales platform, where it is possible to purchase collectors', gift and investment products.
– In the reporting period, we shipped 3.8 tones of bullion to our customers in the form of bars and coins, of which nearly 1 tone of gold. We also secured several significant orders in foreign trade, including from Dubai and Qatar, where we will deliver the silver bars of our production – says Katarzyna Budnicka, CEO and President of the Management Board, Mennica Polska S.A.
Furthermore, the Mint of Poland continued its ongoing cooperation with the National Bank of Poland. In the analyzed period more than 511 million circulation coins with a total value of PLN 75 million and more than 64.000 collector coins with a total value of PLN 5.6 million were delivered.
In foreign trade, in the first six months of this year, the Mint of Poland delivered coins to central banks mainly from South America and Asia, such as the Bank of Colombia, the Central Bank of the Dominican Republic, the Bank of Guatemala and the Treasury of Thailand. The Mint of Poland won two important tenders for circulation coins from the Central Bank of the Dominican Republic and the National Bank of Georgia.
In the group of collector coins, a significant highlight was the fulfillment of an order for silver and gold coins for the National Bank of Georgia and winning tenders from the Central Bank of Armenia to produce 4.500 gold and silver collector coins as well as tenders to produce coins and collector products for banks in Turkmenistan and Uruguay.
In H1 2023, the sales revenues in the Electronic Payments segment reached PLN 113.5 million (vs. PLN 97.4 million in H1 2022). Segment posted a result of PLN 4.1 million (vs. PLN 0.4 million in H1 2023). EBITDA reached PLN9.4 million (vs. PLN 5.5 million inH1 2022).
– In the reporting period, the Electronic Payments segment was up in revenue nearly 17 per cent on the same period a year earlier. This is, among other things, the result of a steadily increasing number of public transport passengers. Higher segment results by PLN 3.7 million are also accounted for by cost optimization measures – reports Katarzyna Budnicka.
The Mint of Poland has finalized the implementation of the Open Payment System in Poznań and surrounding municipalities. As a result of cooperation between the city authorities and the Mint of Poland, with significant technological support from Mastercard and Fiserv Polska S.A., mobile validators appeared in approximately 740 public transport vehicles. The Mint of Poland, for the next consecutive year, was granted the PCI DSS (PCI Data Security Standard) certificate.
Real Estate Development
The Real Estate Development segment’s H1 2023 revenue amounted to PLN 3.2 million (vs. 5.8 million in H1 2022). Segment posted a result of PLN 10.7 million (vs. PLN -14.3 million in H1 2022). EBITDA, including investments valued using the equity method, reached to PLN 12 million (vs. PLN -13 million in H1 2022).
Sales of apartments in the “Bulwary Praskie” project, in terms of signed development agreements or preliminary sales agreements, in buildings R2-R3, S2-S3 and R1 closed at the end of June 2023 with 297 signed development agreements, representing more than 91 per cent of all apartments in buildings under construction. In the following quarters (N, O, P), for which sales are yet to be launched, 747 apartments will be built.
Concerning “Mennica Legacy Tower” project, after the balance sheet date, the Mint of Poland made an offer to purchase shares in this investment with a total value of EUR 135 million for a 50 per cent stake in the MLT project together with the acquisition of the project company's obligations. On 27 July this year the Mint received the last of the required statements of acceptance of the offer by the sellers, allowing it to proceed with due diligence and negotiation of the transaction documents. The price for the shares and other equity as well as the bond repayment amount will be confirmed in the final offer once the due diligence has been completed.