Bangkok--26 Feb--Minor Corporation's
Minor Corporation's (Minor) 2008 net profit was up 34% to Baht 367 million. Although its lifestyle fashion and cosmetics, contract manufacturing and education businesses faced challenging political and economic conditions throughout the year, Minor's total sales increased 3% to Baht 3,438 million. Minor's 18.6% stake in Minor International (MINT) provided strong support to earnings in 2008 as Minor received more dividends and equity accounted for MINT throughout the year.
Minor's lifestyle brand sales and distribution business, which accounted for 44% of total 2008 sales posted a 8% increase in revenues to Baht 1,342 million. Sales from the fashion business increased by 7% to Baht 1,108 million on the performance of brands such as Esprit, Bossini, Timberland and Charles & Keith. Sales from the cosmetics business, which includes brands such as Red Earth, Bloom, Laneige and Smash Box, increased by 12% to Baht 234 million.
Minor's contract manufacturing business, which accounted for 46% of total 2008 sales, experienced an 8% YoY decrease in sales as some of its fast moving consumer goods (FMCG) customers delayed production orders in response to increasingly uncertain economic conditions and a decline in regional demand. Minor's manufacturing facility, which was built in 2004, is one of Thailand finest contract manufacturing facilities in Thailand and it supplies a number of leading FMCG companies such as Unilever and SC Johnson.
In 2008, Minor's equity accounted share of profit from MINT increased by 40% YoY to Baht 357 million. Having increased its stake in MINT from 4.3% to 18.6% since 3Q05 by acquiring shares at Baht 4.0 per share, Minor's stake in MINT now has a market value of Baht 4.9 billion.
On 23 January 2009, Minor announced that its Board of Directors had received a proposal from MINT regarding a business restructuring program involving an exchange of newly issued MINT shares for the total paid-up shares of MINOR in accordance with the SEC Notification no. the Kor Jor. 6/2543. Minor also announced that its Board of Directors had appointed an independent financial advisor to analyze the details of the restructuring program and render an opinion on MINT's proposal to Minor's
shareholders by 24 February 2009. Minor's shareholders are expected to vote on MINT's proposal at an extraordinary general shareholders meeting that has been scheduled for 6 March 2009.
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, Timberland, Charles & Keith, Bloom, Laneige, Smash Box, Tumi, Zwilling J.A. 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 including an 18.6% stake in Minor International. For more information on Minor, please visit www.minornet.com
Press Contacts: Pratana Mongkongkul / Prapharat Tangkawattana / Jim Fralick at Tel: (662) 381-5151