The sales potential of the mint increases to 10 tons of gold per year; company wants to develop sales network – possible purchases (interview)

The Polish mint is increasing its gold production capacity, potentially increasing its sales from 3 tons to 10 tons per year. The company’s president, Grzegorz Zambrzycki, told PAP Business that the company wants to develop its sales network and is looking for acquisitions in Poland and abroad. He added that the coin currently offers the opportunity to purchase products for currency and currency exchange, and plans to launch an online exchange office.

“We are constantly analyzing opportunities for business development in new areas. In the coinage segment, more than a year ago we decided to focus not only on the sale of finished products, but also on gold processing. Up to 100 g., And casting – from 100 g. Up to 1 kg. We also have gold investment coins. We rely on both our own products and the products of well-known foreign issuers. The value of all sales of investment gold in the Polish Mint. This is reflected in our results, because the margin on their products is higher. – said the President.

“Currently, the new casting and rolling line is being put into operation. We have also purchased a furnace for melting raw materials and forming a strip – the first stage of the technological process. About 2 million euros. potentially higher sales, which can reach up to 10 tons per year. We will also be able to enter the semi-finished (B2B) market. This is our strong competitive advantage. We have already made them on our own production discs, ”he added.

In 2021, the Polish Mint sold more than 3 tons of gold.

Zambrzycki has announced an increase in Mint’s sales network, which could take the form of a acquisition.

“An element of strengthening our market advantage based on our technological capabilities is the dynamic development of the sales network. This year alone, we have launched three new sales offices and one retail store. Opening our own outlets requires work. 4-5 months. Talking in 2-3 months. “An alternative option for the development of the sales network is inorganic growth. We are looking very closely at the Polish market. We are also looking for opportunities to buy in European markets,” he said.

He added that in addition to investment gold, the mint also sells collection products. The latter are characterized by a double-digit margin when there is no driving force for revenue in the coin segment.

The Polish Mint currently sells gold in shops and stationary outlets, sales offices, online stores and all PKO BP partner outlets.

The mint has received the consent of the National Bank of Poland for currency exchange operations.

“Two years ago, at the beginning of the pandemic, we could see an increase in interest in converting deposits into foreign currency, as well as investing in gold. The war in Ukraine showed a serious interest in buying gold in foreign currency. “Currently, our branches are equipped with the necessary systems for this activity and the staff has been trained at the required level,” he said.

“Online currency exchange does not require large capital, so this is the option we are considering,” he added.

According to the CEO, the first quarter of 2022 will be successful for the gold trading market.

“Of course, it is no secret that gold sales in February and March remained very satisfactory. The whole market felt and confirmed it. I am far from speculation and fortune-telling, but the second quarter may not be the same as before. in which case the results should be satisfactory.

Zambrzycki said that in the segment of coin circulation, the coin is experiencing a great revival by issuers. Currently, after less activity created by locks, there are many tenders in which the company is actively involved and many have won.

Revenues in the impact segment increased from 630.8 million PLN in 2020 to 977.7 million PLN in 2021, of which about 750 million PLN in 2021 came from sales of investment products. The result of the segment increased from 47.1 million PLN to 56.2 million PLN in the previous year.

The group is growing in the electronic payments segment.

“After two years of defense, as I announced earlier this year, we see the prospect of net profit in the City Card segment. The first quarter looks good. Sales in Poznan and Wroclaw exceed 90 percent, while in Warsaw it has always been the worst in the statistics. “Almost 70 percent of the turnover,” he said.

Revenues in the electronic payments segment increased from 170 million PLN a year ago to about 178 million PLN in 2021. The result of the segment was -11.3 million PLN compared to -14.6 million PLN a year ago.

Zambrzycki reiterated previous statements that it would be difficult for the group to replicate last year’s financial results this year.

“This year we will not show significant revenues from the sale of apartments due to the construction period. Therefore, in 2022 it will be difficult for us to repeat last year’s financial results. I would not like to predict, but it is necessary to remember a certain dependence: the income of the developer is relatively low and the margin is very high. Gold is the opposite, “he said.

Mennica Polska is implementing two development projects: Mennica Residence and Bulwary Praskie. The group also owns half of the Mennica Legacy Tower office building.

Revenues in the development segment increased last year from 142.4 million PLN in 2020 to 153.6 million PLN. The result of the segment was 45.3 million PLN in 2021, compared to 45.1 million PLN in 2020.

In 2021, the net income from the sale of the Mint will increase from 943 million PLN in 2020 to more than 1.3 billion PLN. Last year’s net profit increased to 89.4 million PLN and 55.5 million PLN, while EBITDA increased from 98.9 million PLN in 2020 to 113.3 million PLN.

Ewa Pogodzińska (PAP Business)

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Source:PAP Business

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