Bangkok--12 May--Minor International
Minor International’s (MINT) 1Q10 net profit was up 50% YoY to Bt 600 million and revenues were up 23% YoY with the hospitality and restaurant businesses achieving strong results in a period of increased tourist activity and a relatively stable political environment. In 1Q10, the hotel and restaurant businesses achieved 15% and 23% YoY increases in EBITDA, respectively.
In 1Q10, MINT’s hospitality business benefitted from an increase in global travel and tourism caused by better global economic conditions and political stability in Thailand. Average occupancy rates at MINT’s hotels increased from 56% to 61%, revenues were up 17% and, as a result, EBITDA from the hospitality business was up by 15%. As MINT’s hospitality business enters the second and third quarters which are considered to be the “low season” for Thai tourism, political tensions have returned and Bangkok experienced violent demonstrations in April. With the “low season” for Thai tourism expected to last through September, MINT is hoping that Thailand might resolve its political problems by October which is the beginning of the “high season.” The hotel business is expecting a strong 2H10 as global tourism is expected to continue its recovery and MINT will open two new resorts including the St. Regis Hotel in Bangkok and another Anantara resort in the Maldives.
In 1Q10, MINT’s restaurant business experienced a 9% increase in system wide revenues and a 23% increase in EBITDA. EBITDA was up on the success of cost control measures which pushed margins up from 14% to 16%. Despite the political uncertainties in Thailand, MINT’s quick-serve and fast casual restaurant business continued to achieve strong results and account for almost 40% of MINT’s EBITDA.
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 695 million increase in 1Q10 revenue. Today, MINT owns portfolio of lifestyle brands that includes Esprit, Bossini, Tumi, Charles & Keith and Gap. When MINT opened its first Gap outlet in Bangkok in March, the outlet achieved Gap’s highest ever sales for a new outlet by averaging sales of Bt1.2 million per day during its first week in operation.