Bangkok--17 Aug--Minor International’s
Minor International’s (MINT) 2Q09 revenues were down 3% YoY to Bt 3,725 million and net profit was down 34% YoY to Bt 230 million. In 2Q09, revenues from recent acquisitions of Minor Corporation and Thai Express helped to partially offset decrease in hospitality and residential property revenues. MINT’s hospitality business was down in 2Q09 due to the global economic crisis and recent political instability in Thailand. Net profit was down 34% in 2Q09, compared to the same period last year, as the decline in profit from the hospitality and residential business was not offset by the increase in profit from the restaurant business.
In 2Q09, MINT’s hospitality business continued to experience the full impact of the sudden decline in Thai tourism caused by the global economic recession and political instability in Thailand. Occupancy rates for MINT’s hotels decreased from 64% to 44% and revenues were down 26% to Bt 844 million. Occupancy rates and revenues have been down since political demonstrators closed Thailand’s international airports in December 2008, following violent political protests in Bangkok in April 2009 and the outbreak of H1N1 flu. 2Q09 and 3Q09 are historically off-season periods for Thai tourism and they account for less than 35% of MINT’s overall net profit. Should Thailand return to political stability during the second half of 2009, MINT expects to have a relatively strong 4Q09 with comparable revenue growth over 4Q08.
In 2Q09, MINT’s wholly owned restaurant business, which compliments the hotel business when the tourism industry experiences declines, had revenues that were up 13% to Bt 2,313 million. Revenues were up as a result of a 13% increase in total system sales with of 20 new restaurants in 2Q09. MINT is delighted to have had the opportunity to acquire 70% of Thai Express in May 2008 and continues to explore opportunities to acquire additional restaurant businesses that are highly profitable and able to expand to markets throughout Asia and the Middle East.
Also in 2Q09, MINT completed a business restructuring plan that allowed MINT to acquire a majority stake of 99.92% in Minor Corporation. The acquisition allowed MINT to diversity into several new business areas including the retail distribution of lifestyle brands and contract manufacturing. In 2Q09, Minor’s lifestyle brand distribution and contract manufacturing businesses posted revenues that were down 15% and 7%, respectively. In July 2009, MINT announced that its subsidiary had entered into an agreement with Gap, Inc. to open Gap stores in Thailand. By adding Gap to its portfolio of lifestyle brands that includes Esprit, Bossini, Timberland and Charles & Keith, MINT has strengthened its position as one of Thailand’s leading lifestyle brand retailers.
About Minor International: MINT is a hotel owner, operator and investor with a portfolio of 27 hotels under the Anantara, Marriott, Four Seasons, Elewana and Minor International brands in Thailand, the Maldives, Vietnam, Africa, the Middle East and Indonesia. In addition to hotels, MINT owns 100% of the Minor Food Group which is one of Asia’s largest food service operators with over 1,000 outlets system wide under The Pizza Company, Swensen’s, Sizzler, Dairy Queen, Burger King, Thai Express and the Coffee Club brands. MINT also owns 100% of Minor Corporation which is a leading distributor of international lifestyle brands focusing primarily on fashion, cosmetics and contract manufacturing. Its brands include Esprit, Red Earth, Bossini, Timberland, Charles & Keith, Bloom, Laneige, Smash Box, Tumi, Zwilling J.A. Henckels, Time Life, and World Book. In January 2009, MINT was recognized by Asia Money magazine as Thailand’s Best Managed Medium Cap Company for financial and business performance, management strategy and vision, and shareholder value creation. For more information, please visit www.minornet.com
Note: Financial format maintained with total revenues including share of profit which reported under other income
Press Contacts: Pratana Mongkolkul / Prapharat Tangkawattana at Tel: (662) 381-5151