Bangkok--26 Feb--Minor International’s
Minor International’s (MINT) 2009 revenues were up 5% YoY to Bt 17,291 million and net profit was
down 26% YoY to Bt 1,400 million. In 2009, strong performance from MINT’s wholly owned restaurant
subsidiary and the acquisition of Minor Corporation helped to offset a decrease in hospitality and
residential property revenues. Profits from MINT’s hospitality business were down in 2009 as tourists
responded negatively to poor global economic conditions and political uncertainties in Thailand.
In 2009, MINT’s hospitality business experienced the full impact of the decline in global travel and
tourism caused by the global economic recession and political instability in Thailand. Average
occupancy rates at MINT’s hotels decreased from 65% to 52%, revenues (including share of profit)
were down 18% and, as a result, EBITDA was down by 26%. In 4Q09, however, there were some
signs of a recovery with occupancy rates up from 54% to 58% and revenues up by 7%. Following a
strong 4Q09, MINT expects that its hospitality business will be significantly more profitable in 2010 as
is well positioned for any recovery in travel and tourism. In 2009, MINT invested in renovating and
improving its hotel facilities, signed nine new hotel management contracts and proceeded with the
construction of two major resort properties which will open in 2010. These new resorts include a St.
Regis Hotel in Bangkok and another Anantara resort in the Maldives and they are expected to add to
the growth and profitability of the hospitality business in 2010.
In 2009, MINT’s wholly owned restaurant business, which compliments the hotel business when the tourism industry experiences declines, added 69 new outlets while achieving a 14% increase in revenues (including share of profit) and a 35% increase in EBITDA. EBITDA was up on exceptionally strong performance from The Pizza Company in Thailand, Thai Express in Singapore and The Coffee Club in Australia. Thai Express and The Coffee Club which were acquired by MINT in 2008 performed well beyond expectations in 2009.
MINT is delighted with these two acquisitions and is currently looking for other opportunities to acquire additional restaurant businesses that are highly profitable and able to expand to markets throughout Asia and the Middle East. Having acquired a 99.92% of Minor Corporation in 2Q09, MINT consolidated Minor Corporation during the second half on 2009 and this resulted in a Bt 1,379 million increase in revenue. The acquisition of Minor Corporation allowed MINT to diversify into several new business areas including the retail distribution of lifestyle brands and contract manufacturing. Today, MINT owns portfolio of lifestyle brands that includes Esprit, Bossini, Tumi, Charles & Keith and Gap.