The Royal Canadian Mint recently reported its financial results for the second quarter of 2017, which ended July 1.
According to the Mint’s report, profit before Face Value revaluation and income taxes for the 13 and 26 weeks ended July 1 increased to $9.6 million and $20.2 million, respectively, compared to $5.4 million and $18.9 million during the same periods in fiscal year 2016. The report attributes these increases to “strong demand for Canada 150 products and the resulting positive impact on the numismatic business in 2017.”
“The Mint is performing well across all its businesses. Through extensive circulation and collector coin programs, the celebration of Canada 150 continues to resonate with customers thanks to unique innovations such as the world’s first glow-in-the dark circulation coin and an enhanced marketing approach benefitting our Numismatics business,” said Sandra Hanington, Mint president and CEO. “As well, our Bullion and Foreign coin businesses continue to make a solid contribution to the Mint’s profitability.”
During the 13 and 26 weeks ended July 1, revenues for Canadian circulation increased by $0.3 million and $2.6 million, respectively, over the same periods in 2016 due to the return to profit amendment made to the Royal Canadian Mint Act, which received Royal Assent last December. The net supply for Canadian circulation coins was 1,757 million coins as of July 1 compared to 1,941 million as of July 2, 2016.
According to the reports, numismatics revenue increased 29 per cent to $45.3 million during the 13 weeks ended July 1 compared to the revised revenue of $35 million in the same period of 2016. It also reported an increase of 24 per cent to $92.2 million during the 26 weeks ended July 1 compared to revised revenue of $74.6 million in the same period of 2016.
“The increase in both periods is primarily due to the strong demand for Canada 150 products, as well as the 2017 Proudly Canadian glow in the dark silver coin and the gold and silver two-coin set celebrating the 30th anniversary of the Loonie,” reads the report, which adds sales of numismatics silver products increased 33 per cent in the 13 weeks ended July 1 “mainly due to the successful launch of new silver coins. The overall decrease in sales of gold products was primarily due to the change in product mix in 2017.”
To celebrate Canada’s 150th anniversary, the Mint developed an extensive program to be issued throughout this year.
“This includes investing in people, processes and systems and aligning product, promotion and sales channels with the Canada 150 theme,” reads the report. “This marketing strategy also involves integrating product, price, promotion and placement strategies while leveraging web, digital, social media and call centre resources. The Mint was particularly successful on sales through digital advertising based on newly improved targeting tools and approaches, where more than 70% of the My Canada, My Inspiration products were sold through social media advertisements.”
For more information, read the full report here.