PLN 84.1 million in consolidated net profit for the Mint of Poland Group after Q1-Q3 2021
The Mint of Poland Group has summed up its performance in the first three quarters of the year. Year-on-year, the consolidated sales revenue was up by nearly PLN 330 million, while the consolidated net profit grew by over PLN 74.4 million and the consolidated EBITDA – by nearly PLN 50 million.
Significant growth in all profit categories
For the first nine months of 2021, the Mint of Poland Group reported a rise in consolidated sales revenue of more than 50 percent on the same period a year earlier (PLN 941.7 million in Q1-Q3 2021 vs. PLN 611.9 million in Q1-Q3 2020). In the reported period, the consolidated net result on sales more than doubled from PLN 32.1 million a year before to PLN 74.3 million in Q1-Q3 2021 while the consolidated net profit increased by over PLN 74 million from PLN 9.7 million to PLN 84.1 million. After the first three quarters of this year, the consolidated EBITDA reached PLN 92.3 million (vs. PLN 45.5 million in Q1-Q3 2020).
– Our robust performance in the last quarter is mainly attributable to our engagement in very profitable real estate development projects. In the reported period, we booked revenues from the final sale of 121 apartments in the “Mennica Residence” project and 98 apartments in the “Bulwary Praskie” project – says Grzegorz Zambrzycki, President of the Management Board and Managing Director, Mennica Polska S.A. – Another growth factor were continued strong sales of gold investment products due to persistent high demand for gold, but also of our ability to meet that demand by ensuring a steady supply in challenging market conditions.
In Q1-Q3 2021, all profitability ratios generated by the Group grew on the same period of the previous year.
– The dynamics of financial indicators recorded in the reported period are the direct effect of our diversification-based business development strategy – says Artur Jastrząb, Member of the Management Board and CFO, Mennica Polska S.A. – Even cleared of extraordinary or non-recurring items, the results generated by the Group in the first nine months of this year were significantly higher in all profit categories compared to the same period a year earlier.
In the reported period, the revenues in the core business segment were higher by nearly PLN 222 million, up by nearly 50% y/y (PLN 686.7 million in Q1-Q3 2021 vs. PLN 464.9 million in Q1-Q3 2020). The segment’s result grew by PLN 3.5 million (PLN 43 million in Q1-Q3 2021 vs. PLN 39.5 million in Q1-Q3 2020) while EBITDA went up to PLN 47.2 million (vs. PLN 43 million in Q1-Q3 2020).
– The revenues generated in the Mint Products segment were driven by persistently high interest in gold investment products. In the first half of this year, the sales of gold bullion bars and coins offered by the Mint of Poland were record-breaking, reaching nearly a total volume of 1.5 tons. After the third quarter, the total sales volume has already exceeded 2 tons – CEO Grzegorz Zambrzycki commented – Crucial in terms of our position on the gold investment market is also the continuous availability of gold bullion bars and coins we guarantee to our customers. Apart from a wide range of our own high-quality gold bars and coins, we also offer a large selection of products from leading foreign manufacturers. Noteworthily, it is our products that enjoy greatest popularity. However, regardless of our vested interest in it, I strongly believe that gold is – and always will be – a good idea for investment portfolio diversification.
In the area of international trade, in the first three quarters of the year the Mint of Poland continued to develop its successful cooperation with central banks from countries such as Costa Rica, Paraguay, Dominican Republic, Republic of Colombia, Oman, Nicaragua and Bangladesh.
In Q1-Q3 2021, the revenues in the Electronic Payments segment inched down by PLN 5 million y/y to PLN 127.5 million from PLN 132.5 million in Q1-Q3 2020. The segment’s result was slightly lower than a year earlier (PLN -9.4 million in Q1-Q3 2021 vs. PLN -8.9 million in Q1-Q3 2020). In the reported period, the segment generated EBIDTA of PLN 1.5 million.
– When interpreting the segment’s results, one needs to bear in mind that in the first two and half months of the last year our results were not yet affected by the COVID-19 pandemic. Presently, the sales of public transport tickets, although gradually recovering, are still far from the pre-first-lockdown levels. At the same time, our cost-optimization measures undertaken a year ago allowed us to largely offset the negative impact of the pandemic in the reported period – says Katarzyna Budnicka, Member of the Management Board responsible for Electronic Payments, Mennica Polska S.A.
Despite unfavourable market conditions, the Mint of Poland consistently develops new projects based on its extensive know-how. This July, the company won a tender for the lease and comprehensive maintenance of 553 mobile cashless ticket vending machines in Łódź.
– In the case of this project, the remuneration received by the Mint of Poland for the performance of the contract is determined on a flat fee basis, regardless of the sales volumes – Katarzyna Budnicka informs.
The contract encompasses the delivery, installation and start-up of the machines and maintenance of the system, including the machines and the central ticket sale system, in good working order for the subsequent 48 months.
Real Estate Development
In the first three quarters of this year, the segment’s revenues jumped by PLN 113 million (from PLN 14.5 million in Q1-Q3 2020 to PLN 127.5 million in the same period of 2021). A huge revenue growth and massive year-to-year improvement of the segment’s result (from PLN -2.1 million to PLN 42.6 million) were mainly the effect of the final sale (transfer of ownership title) of 121 apartments in Stage I and Stage II of the “Mennica Residence” project and 98 apartments in Stage I of the “Bulwary Praskie” project (Building S1). The segment’s EBIDTA amounted to PLN 44.7 million (vs. PLN -0.8 million in the first three quarters of 2020).
In the first quarter of 2021, the Mint of Poland signed an agreement with the general contractor FB Antczak to construct another four apartment buildings (S2, S3, R2, R3) in the “Bulwary Praskie” project. After the balance sheet date, a building permit for yet another building (R1), currently yet to become final, was obtained. This stage will comprise a total of 142 apartments and 7 commercial premises.
In the meantime, the offer submitted by the Management Board of Mennica Polska S.A. to purchase the remaining 50% of shares in the share capital of the SPV which is the direct owner of its “Mennica Legacy Tower” project expired this August. Currently, no negotiations with the other shareholder are being held.