Bangkok--Feb 20--Minor Corporation’s
In 2005, Minor Corporation’s (MINOR) full year net profit was up 103% YoY to Baht 250 million and total revenue was up 19% YoY to Baht 2,960 million. Earnings per share increased by 79% to Baht 0.86 per share. Despite a weaker economic outlook, lifestyle brands posted a 32% increase in sales and a 22% increase in net profit in 2005 on the back of strong performances from the fashion and cosmetics brands. Minor’s net profit in 2005 also received a boost in 3Q05 when Minor increased its stake in Minor International (MINT) from 4.3% to 19.6%, allowing it to receive more in dividends and to equity account for its stake in MINT.
In 2005, the lifestyle brands business posted a 32% increase in sales and a 22% increase in net profit on the back of successful fashion and cosmetics brands. In 2005, Esprit and Bossini, two of Minor’s fashion brands, and Bloom and Red Earth, two of Minor’s cosmetics brands combined to achieve a 11% YoY increase in sales and a 34% YoY increase in net profit.
MINOR’s contract manufacturing business, which accounts for 43% of total sales and less than 10% of net profit, achieved sales that were in-line with 2004 levels. Net profit was down from Baht 23 million to Baht 19 million due to higher YoY interest and depreciation costs. The new factory, which began operating in 4Q04, was built to accommodate new customers and support higher production volumes and profitability should improve over time as increasing sales revenues will overcome the higher fixed costs.
Minor’s net profit in 2005 was significantly enhanced in 3Q05 when Minor increased its stake in Minor International (MINT) from 4.3% to 19.6%. In 2005, Minor received dividends and equity accounted for its stake in MINT and these factors combined to increase total revenues by Baht 119 million while having a material and direct affect on increasing net profits.
Minor Corporation (Minor) is a leading distributor of international lifestyle brands in Thailand focusing primarily on fashion, cosmetics, and education. Its brands include Esprit, Red Earth, Bossini, Sin?quanone, Rampage, Bloom, Laneige, Elemis, Tumi, Henckels, Time Life, and World Book. It owns and operates one of Thailand’s leading contract manufacturers and maintains an investment portfolio of listed and private securities. For more information on Minor Corporation, please visit www.minornet.com End.