The transformation of Monnaie de Paris is beginning to bear fruit.
The oldest institution in France, which manufactures the coins circulating in the country, became profitable again last year.
Thanks in particular to the success of its diversification, it generated a net profit of 4.5 million euros, after having suffered four years of losses (-24 million euros in total between 2017 and 2020).
And it achieved its best turnover since 2012 (146.2 million euros).
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In addition to the heavy losses, the institution in full modernization spent the latter for 25 million euros in provisions to finance the recovery of gold or silver coins returned by the French.
Weakened by structural changes linked to the reduction in the use of cash as a means of payment, replaced by contactless bank cards or smartphones, Monnaie de Paris was forced to thoroughly review its economic model.
In fact, government orders for parts have fallen by 50% in ten years.
The manufacture of euros for France now represents only 25% of its turnover.
If we add coins minted for export (to 40 foreign countries), this historical activity now accounts for less than 50% of its turnover.
The balance is now ensured by the production of thematic medals around personalities and collectible coins.
“We had to expand the customer base by changing themes and developing online sales,
” explains Marc Schwartz, CEO of Monnaie de Paris, whose mandate will expire on April 7.
Accentuate its diversification
In 2021, the coins minted on the occasion of the bicentenary of Napoleon's death as well as the collection on the theme of Harry Potter with coins engraved with the effigy of the hero and medals with that of his owl Hedwig, met with a great success.
The latter were also sold both in supermarkets and in toy stores.
To straighten its head, the Monnaie de Paris has also reduced its expenses, which has resulted in a 9% reduction in staff in three years (450 people).
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The establishment will accentuate its diversification.
“It is a necessity, because the use of cash as a means of payment will continue to decrease
, assures Marc Schwartz, stressing nevertheless that since the pandemic the demand for hard and stumbling euros to keep at home has increased by nearly 20 %.
“We are going to consolidate our development model in collectible coins and medals and we are going to diversify into business real estate,”
explains the manager.
“A capital endowment of up to 20 million euros”
Thanks to a law passed in February, the Monnaie de Paris will be able to build several buildings for multiple uses (offices, logistics, etc.) on land adjoining the Pessac factory in Gironde, where coins are produced.
"To help us finance the project, the State is committed to increasing our equity with a capital allocation of up to 20 million euros,"
explains Marc Schwarz.
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In the meantime, the establishment could suffer this year from the rise in the price of raw materials, driven by the war in Ukraine.
Unless it takes advantage of the safe haven status of its coins: since the outbreak of hostilities, sales of gold collector coins have increased by 10%.
