MINT posts 137% jump in 2019 net profit
Minor International Public Company Limited (MINT) reported a net profit of Bt10,698 million for 2019, representing a surge of 137 per cent from Bt4,508 million in the previous year . The sharp rise in net profit was attributable to MINT’s full-year consolidation of NH Hotel Group, improved results from hotel operations and mixed-use activities and gains from asset rotation.
For the last quarter of 2019, MINT reported a net profit of Bt 3,768 million, a 569 per cent increase from Bt563 million for the same period in 2018.
The strong year-on-year net profit growth was driven by mixed-use business and hotel operations, together with the gain on the sale of three hotels in the Maldives in Q4/19, undertaken as part of MINT’s strategic asset rotation plan. Excluding all non-recurring items, MINT’s core net profit grew 23 per cent in 2019 and 53 per cent in Q4/19.
For the fourth quarter of 2019, Minor Hotels reported Bt2,619 million in core net profit , a 66 per cent increase from Bt1,580 million in Q4/18. This increase was driven by strong contributions from Minor Hotels’ real estate business and hotel operations. Anantara Vacation Club continued its turnaround momentum from the previous financial quarter, recording improved revenue and profit in Q4/19. Minor Hotels continued to build its strong hotel portfolio, adding a total of 27 hotels (3,582 rooms) during the course of last year.
In Q4/19, Minor Food reported core net profit of Bt258 million, a slight decline from Bt273 million in Q4/18. Minor Food continued to invest in its digital capabilities to increase competitiveness and to address the soft market going forward.
Thailand hub’s increased engagement with third-party aggregators (as a complement to its own delivery platform), coupled with continuous new product launches, resulted in much improved same-store-sales trend. The Australia hub’s exciting new product launches, together with a digital loyalty programme and collaboration with Uber Eats, led to the same-store-sales growth turning positive in Q4/19.
Improved operations during the quarter, together with the consolidation of Bonchon since mid-November, helped offset softer performance in other parts of the overall business . As a result, Minor Food’s performance is showing signs of recovery with a lower decline in its net profit in Q4/19 compared to other quarters in the year.
MINT continues to explore opportunities for strategic asset rotation. In Q4/19, it sold its joint venture interest in three hotels in the Maldives-Anantara Veli, Anantara Dhigu and Naladhu Private Island. The cash proceeds were used to repay existing debt, and the gain on sale of assets further solidified its equity base.
As a result, MINT’s leverage position continued to improve, with its debt-to-equity ratio falling to 1.3x as of the end of 2019. The transaction improved MINT’s balance sheet, while the company continues to manage properties under its brands to generate management fees.
2020 began with uncertainty, particularly with regards to the COVID-19 situation, resulting in a slowdown in the global economy, and particularly in travel and tourism trends. MINT is closely monitoring the situation and has already taken steps to react quickly to market changes, including initiatives to drive revenue as well as implementation of strict cost controls.
The COVID-19 epidemic is not expected to last long , and MINT’s balanced portfolio positions it well to capitalise on the eventual business rebound.
