Minor International Public Company Limited


Minor International (MINT) reported record-high first-quarter net profit of Baht 1,420 million in 1Q14, an increase from Baht 1,409 million in the same period last year. The increase in net profit was largely attributed to improvement in the performance of hospitality business, particularly that of overseas hotels and Anantara Vacation Club. MINT's resilience in spite of adverse political events in Bangkok is credited to the concerted expansion and diversification strategy over the past few years, combined with the ongoing strong performance of the Company's overall international businesses and the hospitality business in the provinces of Thailand during the quarter. Additionally, TRIS Rating has recently upgraded ratings on the Company and its senior debenture to "A+" from "A", with a Stable Outlook, further underlying the Company's continued ability to deliver strong performance and its diversified portfolios.

In 1Q14, net profit of MINT's hospitality business improved 6% y-y, primarily due to robust performance of hotels in the provinces of Thailand and international. Despite political demonstrations affecting some of MINT's hotels in Bangkok, revenue per available room (RevPar) of the Company's overall portfolio continued to grow at 8% y-y in 1Q14. Excluding hotels in Bangkok, RevPar rose by a larger magnitude of 17%. Hotels in Thailand's major tourist destinations outside of Bangkok maintained robust occupancy rates and strong growth in average daily rates, resulting in continued growth in average RevPar. The Company's overseas hotels witnessed even stronger performance with their average RevPar surging by almost 50%, led by high double-digit RevPar growth of the Company's owned hotels in the Maldives and Sri Lanka, together with high double-digit RevPar growth of managed hotels in United Arab Emirates, Indonesia and China. Another contributing factor driving 1Q14 hospitality performance was Anantara Vacation Club, which saw its revenue grow by 77% y-y. Going into 2Q14, MINT saw improving trend of most hotels in its portfolio, including hotels in Bangkok. The Company expects the hospitality business to continue to perform well into the remainder of 2014, with swift recovery among hotels in Bangkok if the political climate remains stable, the continued momentum of its overseas hotels, and robust contribution from its real estate business.

The Company's leading position in the restaurant industry in Thailand together with its international diversification strategy have also contributed to the strength and resilience of the overall restaurant business, reflected by a 9.4% increase in total system sales in 1Q14. All of key international hubs, including Singapore, Australia and China, recorded stronger performance y-y in 1Q14. Although Thailand operation was challenged by consumption slowdown, the trend is improving. The Company expects its pro-active marketing and cost-saving strategy, as well as its continued effort to further drive performance of overseas operations to further strengthen its resilience to domestic factor and lead to stronger performance in the remainder of the year. Performance of MINT's recent investment in BreadTalk performed well, with its share price almost doubling over the past nine months.

Notwithstanding a slowdown in domestic discretionary spending, MINT's retail trading business reported a 4% increase in revenue and a mere 3% decline in net profit in 1Q14, attributable to pro-active distribution strategy, productivity improvement effort and cost control measures implemented during the quarter.

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 20 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 108 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, 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 Mysale. For more information, please visit www.minorinternational.com


1Q14 1Q13 % Change
Total Revenues 10,653 9,636 11%
Cost of Sales 3,658 3,310 11%
Selling & Administrative 4,420 3,776 17%
EBITDA 2,575 2,550 1%
Depreciation & Amort. 660 574 15%
EBIT 1,915 1,976 -3%
Interest Expenses 243 276 -12%
Earnings Before Tax 1,672 1,700 -2%
Corporate Tax 212 276 -23%
Minority Interest 40 15 172%
Net Profit as Reported 1,420 1,409 1%
Fully Diluted EPS as Reported (Bt) 0.3548 0.3657 -3%
Fully Diluted Shares (mn) 4,002 3,853 4%

Note: Financial format maintained with total revenues including share of profit which reported under other income