A year of changes at Mint of Finland
Mint of Finland, one of the world’s leading coin exporters, has published online its annual report and financial statements for 2016.
Consolidated revenue was €66.6m (2015: €88.2m), down 24.6% year on year. The result was a loss of €1.6m, which equates to -2.5% of revenue (2015: -€3.7m or -4.2% or revenue). The Group’s result for the financial period was -€2.2m, which equates to -3.3% of revenue (2015: -€4.2m or -4.8% of revenue).
Mint of Finland Group’s business development continued to be challenging. Cash flow was €3.6m positive (2015: €2.0m), but the operating result was negative. To improve earnings performance, in 2016 Mint of Finland initiated a change programme, with activities allocated to strategic focus areas utilising and developing the company’s values and strengths. Mint of Finland is wholly owned by the Finnish state and operates on a commercial basis.
The circulation coin business reported a 46% increase in revenue, which was in line with expecta-tions. New customers were secured from Central America and the Middle East. The order book also improved towards the end of the year. Even though there was certainly a marked improvement compared to the previous year, profitability was unsatisfactory. The blank business saw a relative improvement in profitability and demand picked up during the second half of the year. In the commemorative coin business, the year was in line with expectations. Sales of the €2 commemorative coins struck in tribute to Eino Leino and Georg Henrik von Wright sold well in 2016.
Outlook for 2017
Notwithstanding also positive development seen in the market, competition remains fierce and the margins are very low. The appearance of new actors, for example from China, on the international market, especially in the coin blank business, will further increase competition.
At year-end 2016. Mint of Finland Group’s order books were €47.3m. In addition, in December, we received notification that we had won an invitation to tender worth €15.6m. Orders in respect of this were added to the order books in January 2017. Spring 2017 will be very busy in the circulation coin business and the blank business also has a reasonably healthy order book.
To date, cash has held its position well, especially in small transactions, which continue to account for a significant share of transactions worldwide. Customers appreciate delivery reliability and moderate prices, which are reflected in strict bid terms and conditions and increasingly fiercer competition on prices.
For more information, please contact:
+358 50 575 9197
Vice President, Communications
Mint of Finland
Mint of Finland Group designs, markets and manufactures metal coins, blanks, collector coins, special coins and coinag-es. Mint of Finland Group is the strongest mint in the euro zone and one of the largest global exporters of metal coins. The company is owned by the Republic of Finland. By decision of the Ministry of Finance, Mint of Finland has exclusive rights to mint collector coins in Finland. The collector coins and special coins released in 2017 are part of the Finland 100 programme coordinated by the Prime Minister’s Office. For more information on events in 2017, please visit www.mint.fi