July 16, 2013 – Mint of Finland Group had a challenging year which was influenced by the weak global market and overcapacity in the coin industry, as well as the slowdown in euro change over decision making. In addition, the company’s result was burdened by the significant non-recurring losses of the Argentina project. The Group’s turnover and operating profit both decreased, 119 Me (137 Me) and -5.4 Me (2.6 Me), respectively.
The market, as well as domestic and export markets is extremely challenging. The financial crisis and market share growth of other means of payment have reduced product demand for coins in advanced economies and intensified the competition in emerging markets. Prices and demand continued to fall. In addition, excess capacity, particularly in Europe, has tightened the price criteria in public procurement tenders where Mint of Finland Group as a market-based player is competing with government agencies that are not non-market-based actors.
Precious metal prices continue to be at a high level and have clearly influenced on the decline in demand for commemorative coins, and on the continuous rise of the unit prices of the products as well as on the increased demand for precious metal investment products. Only the calming down of the investment market and the fall in precious metal prices can recreate demand for original collector coins.
Instability and challenges with overcapacity have slowed down the integration of the company’s German subsidiary into the Group. The biggest synergy benefit in increased sales capacity has been achieved only partially.
The company’s restructuring in the circulation coins and blanks business will continue throughout the year and is not expected to be completed in blanks until 2014. The collector coins business has been cut in 2013, and the focus will primarily be on domestic collector coins and on improving the efficiency of distribution. In the summer of 2013 the company will move to new premises. These measures will have a significant impact on the company’s competitiveness.
According the current estimate, the market situation for circulation coins will not be relieved in 2013 due to over-capacity and weak demand, although there are also positive signs from the market. Copper and nickel prices are expected to rise only after industrial production begins to accelerate after the recession. An increase in nickel and copper prices has typically added demand for coins when customers are substituting the raw materials of their coins for cheaper alternatives.
There will be a combined annual report and corporate responsibility report for 2013. You can read the 2012 publication here.
For more information on the Mint of Finland, please visit its website.