Minor International Public Company Limited


Minor International (MINT) reported 4Q13 net profit of Baht 1,556 million, a 34% increase from the same period last year, attributable to improved performance of all three business units. Full-year 2013 net profit surged 26% to another record-high Baht 4,101 million. If the one-time insurance claims received in 2012 following the floods in 2011 are excluded, net profit increase would be of larger magnitude at 33% in 2013. The results reflect the Company's strong focus on strategic expansion and disciplined execution, in order to stay well-positioned for long-term growth. In addition, MINT's Board of Directors declared a cash dividend of Baht 0.35 per share, payable on April 30th, 2014, to shareholders on record as of April 18th, 2014. The dividend payment is subject to MINT's shareholder approval at the Annual General Meeting of Shareholders to be held on April 2nd, 2014.

Our commercial segments comprising hospitality, restaurant and retail trading businesses, continued to outpace the overall market in terms of performance. The full-year consolidation of Beijing Riverside & Courtyard (Riverside) in China, since the acquisition in December 2012, has also contributed to growth. MINT's strong business foundation with high barriers to entry, coupled with well-planned diversification strategy that the firm has implemented alongside its expansion strategy over the past several years, have buffered the Company from the slowdown in domestic consumption in the second half of 2013 and the political demonstrations in Bangkok during the last two months of the year. Revenue contribution from overseas markets has increased remarkably from 4% in 2007 to 38% in 2013, with the figure expected to continue growing in the coming years.

During 4Q13, MINT continued to drive its business to pave the way for even more robust performance in the future. The Company invested in Peace Haven Resorts Limited to develop Anantara hotel in Tangalle in Sri Lanka and acquired a 50% stake in NIYAMA under the Per AQUUM brand in the Maldives. The pipeline of management contracts continued to grow, with the opening of Anantara Chiang Mai, AVANI Atrium Bangkok, Anantara Dubai the Palm and Anantara Sir Bani Yas Island Al Sahel Villa Resort in the UAE. The wholly-owned subsidiary Oaks Hotels & Resorts also continued expanding its business under the Management Letting Rights (MLRs) model, with the opening of Oaks Moranbah, Oaks Middlemount and Oaks Bowen Hills, together with the acquisitions of Oaks Cypress Lakes and Oaks Broome. Grand Hotel in Gladstone under Oaks was opened in late December. MINT also launched a new restaurant concept, Penang Street, in Singapore and opened a flagship store for its latest fashion brand Pedro in Bangkok.

In 4Q13, net profit of MINT's hospitality business increased by 30%, driven by strong performance of hotel operations, including the Company-owned hotels and managed hotels, as well as solid profit growth of mixed-used real estate business. Despite the political events towards the end of the year, MINT's 4Q13 organic hotel portfolio witnessed year-on-year increases in occupancy, average daily rate (ADR) and revenue per available room (RevPar). Hence, the impact of political events in Bangkok on MINT remained muted, especially with revenue from hotels in Bangkok contributing approximately 7% of MINT's total revenue. For the full year, MINT's hospitality business achieved a 26% increase in net profit. Robust tourism paired with MINT's concerted efforts to broaden its distribution channels of the hotel rooms to new market segments have helped propel organic occupancy of the owned hotels to 70% in 2013 versus 66% in 2012. Improved occupancy coupled with a further 8% increase in organic ADR contributed to a 15% increase in organic RevPar of owned hotels, which contributed 43% of total hospitality revenue. In addition, the management income almost doubled in 2013 primarily as a result of the new hotels opened and operational during the year. MINT's real estate business, which comprises residential development and Anantara Vacation Club, also saw its profit increase 16% in 2013. Additional purposed-built inventory added to Anantara Vacation Club's portfolio, together with the launch of the The Residences by Anantara, Phuket, should underpin another strong year for the real estate segment in 2014.

In 4Q13, net profit of MINT's restaurant business increased 48% from the same period of last year, largely driven by 14.3% increase in system-wide sales and the consolidation of Riverside in China in December 2012. For similar reasons, net profit of restaurant business grew by 27% in 2013. Full-year system-wide sales increased by 13.8% as a result of 1.5% same-store-sales growth together with the addition of 163 new outlets. In spite of recent deceleration in consumption and political events, the Company's leading position in the market and its on-going efforts to strategize its menu and marketing campaigns to drive traffic, continued to propel sales growth and profit margin. 2013 also marked the financial turn-around of MINT's restaurant business in China, which passed break-even point as planned.

In 4Q13, net profit of retail trading and contract manufacturing increased by 13% on the back of improved performance of fashion business. In 2013, core net profit (excluding one-time insurance claims in 2012) of retail trading and contract manufacturing increased more than fivefold due to stronger performance of fashion business, together with the recovery of the contract manufacturing business as Navasri Manufacturing plant became fully operational again in 2013.

About Minor International: Minor International (MINT) is a global company focused on three primary businesses including restaurants, hotels and lifestyle brands distribution. MINT is one of Asia's largest restaurant companies with over 1,500 outlets operating system-wide in 19 countries under The Pizza Company, Swensen's, Sizzler, Dairy Queen, Burger King, Thai Express, The Coffee Club, Ribs and Rumps and Riverside brands. MINT is also a hotel owner, operator and investor with a portfolio of 103 hotels and serviced suites under the Anantara, AVANI, Oaks, Per AQUUM, Marriott, Four Seasons, St. Regis, Elewana and Minor International brands in Thailand, Australia, New Zealand, the Maldives, Vietnam, Tanzania, Kenya, the Middle East, Sri Lanka, China, Malaysia, Indonesia, Cambodia and Mozambique. MINT is one of Thailand's largest distributors of lifestyle brands focusing primarily on fashion, cosmetics and contract manufacturing. Its brands include Gap, Esprit, Bossini, Charles & Keith, Pedro, Red Earth, Tumi, Zwilling J.A. Henckels, ETL Learning and Thaisale. For more information, please visit www.minorinternational.com


4Q13 4Q12 % Change 2013 2012 % Change
Total Revenues 10,094 8,860 14% 36,936 32,994 12%
Cost of Sales 3,469 3,273 6% 13,189 12,466 6%
Selling & Administrative 3,927 3,566 10% 15,443 13,465 15%
EBITDA 2,699 2,021 34% 8,304 7,063 18%
Depreciation & Amort. 656 551 19% 2,420 2,175 11%
EBIT 2,043 1,469 39% 5,884 4,888 20%
Interest Expenses 242 261 -7% 1,027 1,085 -5%
Earnings Before Tax 1,801 1,208 49% 4,857 3,803 28%
Corporate Tax 216 43 399% 675 556 22%
Minority Interest 28 6 387% 80 4 2020%
Net Profit as Reported 1,556 1,159 34% 4,101 3,243 26%
Fully Diluted EPS as Reported (Bt) 0.3889 0.3059 27% 1.0447 0.8708 20%
Fully Diluted Shares (mn) 4,002 3,788 6% 3,926 3,725 6%