Bangkok--14 May--Minor International
Minor International (MINT) reported another record-high quarterly net profit of Baht 1.4 billion in 1Q13, an increase of 13% from Baht 1.2 billion in the same period last year. Excluding insurance claim received in 1Q12, net profit increased more significantly by 19% in 1Q13. The increase in net profit was attributable to improvement in the performance of hospitality, restaurant and retail trading businesses. The solid foundation built over the years and the management’s proactive efforts to reap the benefits of the positive and changing environment resulted in growth for all of MINT’s three business units.
In 1Q13, owned hotels, which accounted for 48% of hospitality revenues, saw revenue per available room (RevPar) increase by 23% on an organic basis, without the effect of the exchange rate. Systemwide, including new hotels and Baht appreciation, RevPar increased by 19%, which was the primary reason for the increase in net profit of MINT’s hospitality business of 9% y-y. During 1Q13, MINT acquired two hotels in Hoi An and Quy Nhon, Vietnam which will be rebranded into Anantara and Avani, and launched Anantara Xishuangbanna Resort & Spa in China, a hotel under management contract. In the current pipeline, MINT plans to open three company-owned and joint-venture hotels and six hotels under management contract and Oaks’ management letting rights in the remaining of 2013. MINT continues to look for new opportunities in addition! al management contracts as well as acquisitions or joint venture. Revenues of Anantara Vacation Club increased by over 42% y-y, and is becoming another important contributor to the hospitality business. MINT expects the hospitality business to continue to perform well into the remainder of 2013, with the continued momentum of the performance of the company-owned hotels portfolio, managed hotels and the expansion plans.
The restaurant business reported 1Q13 net profit growth of 25% y-y. Same store sales grew by 4.1%, while number of outlets expanded by 11% y-y, resulting in system-wide sales growth of 14.6%. The domestic business, which accounted for 76% of the restaurant business revenues, reported sales growth on the back of the continued robust domestic consumption, together with MINT’s marketing and promotional campaigns such as buy-one-get-one campaign of The Pizza Company and the promotion of Swensen’s Mango Sundae in 1Q13. MINT has all along adjusted and launched various marketing and promotional campaigns to cope with rapidly changing consumer behaviour, resulting in the sustainable growth of the restaurant business in the long term. While all restaurant hubs, including Thailand, Australia and Singapore reported profit improvement! , margin of the restaurant business was further propelled by the turnaround of the China business. Since the 49% acquisition of Riverside at the end of 2012, MINT’s restaurant business in China has turned around and already break-even at the operation level. In addition, as at the end of 1Q13, MINT has increased its stake to 10% in “Breadtalk”, the Singapore-based operator of bakery, restaurant and food atriums.
The retail trading business reported an impressive net profit growth by 6 times in 1Q13, excluding insurance claim from the floods received in 1Q12. Same store sales of retail trading saw growth of 10.3% in 1Q13, mainly attributable to the fashion business. Together with new store opening, total system sales grew by 23% y-y. In addition, contract manufacturing of consumer goods is in full operation in 1Q13 compared to partial operation in 1Q12 because of the floods in the end of 2011.
About Minor International:
Minor International (MINT) is a global company focused on three primary businesses including restaurants, hotels and lifestyle brands distribution. MINT is one of Asia’s largest restaurant companies with over 1,400 outlets operating system wide in 17 countries under The Pizza Company, Swensen’s, Sizzler, Dairy Queen, Burger King, Thai Express, the Coffee Club, Ribs and Rumps and Riverside brands. MINT is also a hotel owner, operator and investor with a portfolio of 45 hotels and 40 serviced suites under the Anantara, Avani, Oaks, Marriott, Four Seasons, St. Regis, Elewana and Minor International brands in Thailand, Australia, New Zealand, the Maldives, Vietnam, Tanzania, Kenya, the Middle East, Sri Lanka, China, Malaysia and Indonesia. MINT is one of Thailand’s largest distributo! rs of lifestyle brands focusing primarily on fashion, cosmetics and contract manufacturing. Its brands include Gap, Esprit, Bossini, Charles & Keith, Pedro, Red Earth, Tumi, Zwilling J.A. Henckels, ETL Learning and Thaisale. For more information, please visit www.minorinternational.com