Bangkok--14 Nov--Minor International's
Minor International's (MINT) 3Q06 revenues increased by 14% YoY to Baht 2,868 million as MINT's food and hotel businesses both experienced higher YoY comp growth. Net profits were unchanged YoY at Baht 240 million due to Baht 40 million in extraordinary tsunami related business interruption insurance revenues received in 3Q05. Excluding exceptional items, MINT's 3Q06 net profit was up 20% YoY. Since the military coup in late September, MINT's hotel business was affected for several weeks as bookings were either rescheduled or rebooked for 1Q07. As political tensions decrease, MINT expects that the hotel business will recover in 4Q06 and be strong in 1Q07. For 9M06, net profit was up 30% YoY to Baht 881 million with EPS up 16% YoY to Baht 0.31 per share.
In 3Q06, Minor Food Group's (MFG) revenues increased by 25% YoY to Baht 1,477 million. In 3Q06, MFG fully consolidated the China business after acquiring a 100% stake at the end of 2005, achieved a 9% YoY increase in same store sales and operated 68 additional outlets (system-wide) compared to 3Q05. In October, MINT announced that it will acquire approximately 17% of S&P Syndicate which is one of Thailand's largest food production and restaurant companies with more than 230 restaurant and bakery shops operating under the S&P and other brand names. MINT will work with S&P to explore ways to expand each other's food businesses by cooperating in areas such as international franchising and home delivery and expects that S&P will contribute significantly to MINT's future earnings growth.
Despite political uncertainty, a coup and renovations on 60% of the rooms at the Four Seasons Hotel in Bangkok, 3Q06 hotel revenues were stable YoY at Baht 994 million as overall average revpar increased by 3% YoY to Baht 2,702. In the weeks following the late September coup, the hotel business experienced a short term decline in business as guests and corporate groups cancelled their bookings between September and November but rebooked for 1Q07. MINT expects that the affects of the coup will be short lived and that business will recover in 4Q06 and be strong in 1Q07 with renovations complete at the Four Seasons Bangkok and contributions from new hotels such as the 110 room Anantara and 20 room Naladhu in the Maldives and the 60 room Four Seasons in Koh Samui.
Minor International (MINT) is Thailand's largest food service operator with 602 outlets system wide under The Pizza Company, Swensen's, Sizzler, Dairy Queen, Burger King, and LeJazz brands. It is one of Thailand's leading hotel operators with a portfolio of 13 hotels approximately 2,300 rooms under the Marriott, Four Seasons, Anantara, and Minor International brands in Thailand, the Maldives, and Vietnam. Through a joint venture with Marriott International, it has developed the 144 room Marriott Vacation Club Time Share in Phuket. MINT is also one of the largest spa operators in the Asia Pacific region with 23 spas in Thailand, China and the Middle East under the Mandara, the Spa and Anantara brands. For more information, visit www.minornet.com
Press Contacts: Pratana Manomaiphiboon / Prapharat Tangkawattana / Jim Fralick at Tel: (662) 381-5151