Minor International posts 32% jump in Q4 core net profit, 10% rise for full year

This performance drove MINT’s full-year core net profit to Bt5.95 billion, representing a 10-per-cent increase from Bt5.41 billion in 2017.
The core-profit increase is attributable to the overall performance of Minor Hotels and in particular the consolidation of NH Hotel Group, which commenced during the fourth period. In addition, MINT announced a proposed cash dividend for 2018 of Bt0.40 per share, and warrants at the ratio of 20:1, with a conversion ratio of 1:1 at the price of Bt43 per share and a tenor of two years and four months. 
The issuance of the warrants is expected to further strengthen MINT’s equity base and in turn its balance-sheet position. 
Both the dividend payment and warrant issuance are subject to shareholder approval.
Minor Hotels’ business includes ownership and management of hotels and serviced apartments, real-estate development and other complementary businesses. 
For last year, Minor Hotels reported core net profit of Bt4.30 billion, a 28-per-cent increase from Bt3.37 billion in 2017. 
The increase was driven primarily by hotel operations and the consolidation of NH Hotel Group. 
Revenue per available room (RevPar) of Minor Hotels’ owned hotels portfolio rose by 10 per cent in local currencies last year. 
RevPar of all key overseas markets, including Portugal, Brazil, the Maldives and Africa, grew in excess of 10 per cent, while RevPar of Thailand-owned hotels increased by 5 per cent despite the slowdown of the Chinese tourists in the second half. 
Minor Food operates a portfolio of casual dining restaurants in three primary hubs: Thailand, China and Australia. 
The unit reported core net profit of Bt1.52 billion for last year, which was one of its most challenging years with all of its major markets experiencing weak domestic consumption and increasing levels of competition. 
Nevertheless, Minor Food’s total system sales (TSS) showed an improving trend throughout 2018 and closed with TSS growth of 0.2 per cent for the full year. 
This growth was attributable to strategic outlet expansion at the rate of 10 per cent, primarily in Thailand and China, which was sufficient to offset negative same-store-sales growth. Minor Food is determined to remain a leader in the key markets in which it operates and will continue to invest in its business even in the face of economic and demand-related headwinds, the group said.
In addition to product innovations, it will continue to invest heavily in broadening new channels to reach its customers, both through expansion of physical stores and penetration of online channels, including website and mobile applications.
Minor Lifestyle is the exclusive Thailand distributor of fashion apparel and household products under various international brands and a contract manufacturer of household goods for FMCG (fast-moving consumer goods) companies. 
Minor Lifestyle reported net profit of Bt130 million in 2018, an increase of 2 per cent from the year prior. 
The increase was attributable to the strong performance of Esprit and Bossini. 
William E Heinecke, MINT chairman and group chief executive officer, said on Tuesday: “I am proud to say that we are one of the few companies in the hospitality sector that has been able to report such a solid growth during this challenging period. We were able to identify a strategic acquisition opportunity and act quickly on it – and it has immediately begun to pay off. 
“The contribution from NH Hotel Group has helped drive our 2018 growth and, looking forward into 2019, I am confident of even better performance. Our hotel business will be driven by Thailand with the recovery of the Chinese tourists, Portugal as we realise the full benefit of the renovation efforts over the past two years, and the Maldives with the rebalancing of supply and demand. In addition, I am confident of the outlook of NH Hotel Group, which will be consolidated into our financial results for full-year 2019. 
“For the restaurant business, we expect the Thai macro backdrop to improve following completion of elections in 2019 [leading to improvement in domestic consumption], and plan to accelerate the expansion of our China hub with rapid outlet opening to capitalise on the strength of the Riverside brand. 
“I am confident that 2019 will mark another year in which we will be able to deliver strong performance for all of our stakeholders.”