Over PLN 1 billion in consolidated revenues generated by the Mint of Poland Group cumulatively in Q1-Q3 2022

28 october 2022

The Mint of Poland Group has reported its performance after the first three quarters of this year. In this period, the Group recorded a year-on-year rise of PLN 63 million in consolidated revenues, the biggest contributor to which was traditionally the Mint Products segment. Also, a significant improvement in financial results was observed in the Electronic Payments segment.

In the Mint of Poland’s financial statements for the first three quarters of 2022, the consolidated sales revenues were in excess of PLN 1 billion, up by PLN 63.4 million year-on-year. In this period, the consolidated net profit reached PLN 41 million (vs. PLN 74.3 million in Q1-Q3 2021) while the EBITDA – including the share of earnings or losses from equity method investments – stood at PLN 50.9 million (vs. PLN 92.3 million in Q1-Q3 2021). The adjusted net profit was PLN 31.7 million (vs. PLN 66.4 million in Q1-Q3 2021). In the meantime, the Company’s financial liquidity has remained stable.

– During the reported period, we improved our earnings in two out of three segments – the Mint Products and the Electronic Payments. The performance of the Real Estate Development was lower compared to the year before mainly due to high base effects, as the final sales of apartments in the “Mennica Residence I” and “Mennica Residence II” projects as well as in the “Bulwary Praskie” project were closed in the first three quarters of the previous year. In the current year, the segment’s projects were on the construction and preliminary sale stages – explained Katarzyna Budnicka, CEO and President of the Management Board, Mennica Polska S.A.

Mint Products

In the reported period, the revenue in the core business segment was more than PLN 155 million higher (PLN 842.4 million in Q1-Q3 2022 vs. PLN 686.7 million a year earlier). The segment’s result grew from PLN 43 million in Q1-Q3 2021 to PLN 48.7 million in Q1-Q3 2022. Also, the segment’s EBITDA went up, reaching PLN 53 million (vs. PLN 47.2 million in Q1-Q3 2021).

The performance of the Mint Products segment is primarily a reflection of the continued high interest in gold investment products. The ability to provide ongoing access to gold and the regular expansion of distribution channels allow the Mint of Poland to further strengthen its competitive advantages.

In the area of circulation coins, the most important achievements in the last nine months are three tender awards to the Mint of Poland announced by the central banks of Guatemala, the Dominica Republic and Colombia. The performance of the contracts is underway and the orders will be finalised in the second half of 2023. During the third quarter of this year, the Mint also won a tender for the production of 50-satang coins for the Treasury Department in Thailand. In the area of collector coins, several larger orders were acquired, including for the production of 1,000 gold bars for the Bank of Estonia.

Electronic Payments

In Q1-Q3 2022, the revenue in the Electronic Payments segment grew by nearly PLN 26 million year-on-year, from PLN 127.5 million in Q1-Q3 2021 to PLN 153.4 million in Q1-Q3 2022. The segment’s result was higher by PLN 11.7 million than a year earlier (PLN 2.3 million in Q1-Q3 2022 vs. -9.4 million Q1-Q3 2021). In the reported period, the segment generated an EBIDTA of PLN 10.1 million, almost seven times higher than in the same period a year earlier (PLN 1.5 million in Q1-Q3 2021).

The significant increase in the segment’s revenue and results was driven by higher passenger traffic and internal cost optimisation measures implemented by the Company. Also, several service contracts in the largest cities were renewed for another 2-3 years.

In the first three months of the year, the Mint of Poland developed and launched new facilities for public transport users. In Wroclaw, Bydgoszcz, Gdansk and Lodz, passengers can now pay their fare with ‘contactless BLIK’. This innovative form of payment is available in mobile validators operated under the Mint of Poland’s Open Payment System and in traditional ticket vending machines (TVMs). In Warsaw, BLIK payments are accepted in both stationary TVMs and in mobile ones installed on buses and trams.

Real Estate Development

In the first three quarters of this year, the segment’s revenue reached PLN 9.2 million (vs. PLN 127.5 million in Q1-Q3 2021). In this period, the segment generated a result of PLN -16 million (vs. PLN 42.6 million in Q1-Q3 2021) while its EBIDTA, including the share of earnings or losses from equity method investments, was PLN -14 million against PLN 44.7 million after the first nine months of 2021.

– In the “Bulwary Praskie” project, 73 per cent of apartments in the buildings which are currently under construction have been pre-sold. In the first three quarters of 2022, despite rising interest rates and deteriorating market conditions, pre-sale agreements were signed for a total of 152 apartments. This represents almost 50 per cent of the total number of apartments in Buildings S2-S3, R1, and R2-R3. The construction of the buildings is proceeding according to the schedule. By the end of this year, we are planning to hand over 183 apartmentsKatarzyna Budnicka comments.

The final sale of apartments pre-sold in the first three quarters of this year will be recognised in the revenues of future periods.