For release 31 March 2016 after 10am CEST
Mint of Finland, one of the world’s leading coin exporters, has published online its annual report and financial statements for 2015.
The revenue of the parent company Mint of Finland Ltd almost doubled to €49.0m (2014: €23.6). The company reported an operating profit of €0.1m, which equates to 0.3% of revenue (2014: -€2.7m, 11.3% of revenue). The parent company’s result for the financial period was -€0.6m (2014: -€0.4m). During the financial period, the company withdrew from its holding in the Norwegian joint venture. This resulted in non-recurring expenses totalling €0.7m, which have been recognised under extraordinary items.
Consolidated revenue was up 15.8% year on year. Higher revenue was mainly attributable to growth in the circulation coin business. Revenue was €88.2m (2014: €76.2m). The Group posted a loss of €2.2m, which equates to -2.5% of revenue (2014: -€2.6m, -3.4% of revenue). The Group’s result for the financial period was -€4.2m, which equates to -4.8% of revenue (2014: -€3.6m, -4.7% of revenue). The Group’s result includes extraordinary expenses of €1.6m arising from Group restructuring.
Demand for metal coins as a means of cash payment continued at a satisfactory level despite the development of new means of payment. Even though consumer surveys indicate a decline in cash payment, this has not, to date, been reflected either in the amounts of metal coins made or in the demand for them in Mint of Finland’s core market areas.
Prices of nickel, copper and steel – the main raw materials of metal coins – fell sharply during 2015. This significantly affects revenue and profitability in the sector, as well as the market price for metal coinage.
Especially in the circulation coin business, the prevailing overcapacity continued unchanged.
Weak consumer demand in Finland means low, uncertain demand for collector’s items.
Performance of the circulation and collector coins businesses
Demand in the circulation coin business picked up compared to 2014 and Mint of Finland successfully won new customers in Latin America and Africa. The projects secured will mean work for the company’s circulation coin production for a longer period. In addition, the company managed to further strengthen customer relations through the quality of its products and operations. The blank business failed to fully achieve the volume pursued, but the operating result was clearly positive.
In the collector coin business, long-term work with customer relations and developing the business was rewarded with positive earnings. There was an increase in exports of Finnish collector coin products, which now account for almost 50% of sales.
Despite positive progress, the Group still failed to achieve positive earnings. This was mainly due to tough competition on prices and to oversupply. The company’s strategic measures with regard to profitability, responsibility and customer satisfaction are aimed at further improving our competitiveness in a tough operating environment.
Outlook for 2016
The outlook for 2016 is split. At the start of the year, it seems order books for circulation coins are relatively good, whereas demand for blanks is challenging. Concerning collector’s products, demand is reflected by weak consumer demand in Finland.
For more information, please contact
+358 50 575 9197
Vice President, Communications
Mint of Finland
Mint of Finland Group designs, markets and manufactures coins, blanks and collector coins. Mint of Finland Group is the strongest mint in the euro zone and one of the largest global exporters of coins. The company is owned by the Republic of Finland. You can see how coins are produced at the About a Coin exhibition at the Heureka Science Centre. For more information about the 2016 events, please visit www.mint.fi
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