Mint announces 17% core profit growth to record first-quarter high

The high profit growth was attributed to the strong operational performance of both Minor Hotels and Minor Food, whose robust multi-brand portfolios, geographical diversification and business agility made them more resilient than many of their competitors and led to a swift rebound in performance after the national mourning period in Thailand during the fourth quarter of 2016, Mint said.
Minor Hotels reported first-quarter net profit of Bt1.361 billion, a 21-per-cent increase year on year from core 1Q16 net profit of Bt1.124 billion. 
Revenue per available room (RevPar) of Minor Hotels’ owned-hotel portfolio organically grew by 6 per cent year on year in 1Q17, driven in particular by its hotels in Bangkok, northern Thailand and Brazil and the renovated hotels in Portugal. 
Improving macroeconomic conditions in Brazil and completion of renovation of Minor Hotels’ Tivoli Sao Paulo Hotel propelled occupancy and RevPar performance improvements in Brazil hotels in 1Q17. 
In Portugal, Tivoli Marina Vilamoura Algarve Resort and Tivoli Oriente Lisboa Hotel underwent substantial renovations last year and saw significant resultant occupancy and RevPar increases in 1Q17. 
Minor Hotels’ Thailand hotels showed improved performance, with RevPar growing in 1Q17 compared with the last two months of 2016 (which saw RevPar decline throughout the mourning period). 
Minor Hotels’ Oaks business in Australia reported RevPar growth of 7 per cent year on year in 1Q17, resulting from both occupancy and average daily rate (ADR) increases. 
In addition, Minor Hotels’ real-estate business performed well in 1Q17. Minor Hotels sold and transferred three Residences by Anantara, Layan, Phuket, three Anantara Chiang Mai Serviced Suites and one penthouse unit of Torres Rani, Maputo, Mozambique. 
Anantara Vacation Club, after adjustments to its sales model that took place during 2015, successfully sustained its improved performance since the fourth quarter of last year, with strong revenue growth of almost 30 per cent year on year in 1Q17. 
Minor Hotels expects performance for the rest of the year to remain strong. Thailand is expected to maintain its position as an attractive destination for tourists, while Portugal will benefit both from Minor Hotels’ property renovations and Portugal’s perception as being a safe destination for Europeans. 
Brazil is expected to benefit from an improving political climate, which together with completed property renovations is expected to drive both occupancy and ADR growth. 
Minor Hotels will continue to expand its hotel footprint and build its pipeline to drive the residential sales and Anantara Vacation Club, the company says.
Minor Food reported 1Q17 net-profit growth of 12 per cent year on year to Bt540 million from Bt481 million in 1Q16, primarily driven by strong performance of its Thailand and China hubs. 
Minor Food’s Thailand hub has rebounded from the mourning period in 4Q16 and outperformed the general industry with same-store-sales growth of 2.6 per cent in 1Q17, thanks to its strong brand equity, product innovation and proactive marketing campaigns. 
The Pizza Company continued to perform well with new product initiatives and an upgraded sales-channel platform, driven in part by the success of its mobile application. 
Swensen’s performance rebounded after product and presentation improvements, together with effective marketing initiatives, with positive same-store-sales growth throughout 1Q17. 
Minor Food’s China hub continued to expand profitably, delivering strong same-store-sales growth in both Beijing and Shanghai. 
For the group, with overall same-store-sales growth of 1.3 per cent, together with outlet expansion of 8 per cent year on year, Minor Food reported total-system-sales growth of 8.2 per cent year on year in 1Q17. 
Minor Food expects its same-store-sales growth to sustain throughout 2017. It expects its continued growth in 2017 to be driven by product innovations, a strong marketing campaign and Thailand’s strengthening economy. 
Minor Food expects its China hub to continue to grow in 2017 as well, in part thanks to the strengthening Chinese economy, while its profitability is expected to continue to improve because of a streamlined supply chain and increased operational efficiencies.
Minor Lifestyle’s 1Q17 net profit declined year on year, to Bt24 million from Bt38 million in 1Q16, primarily because of the temporary decline in orders from key customers of its contract manufacturing business, who were affected by weaker demand during Thailand’s mourning period. 
Nevertheless, Minor Lifestyle continues to build its home and kitchenware portfolio of brands in order to deliver sustainable growth in the long term, with the addition of Joseph Joseph, design-led houseware products from England, in March.