Mitihoon – Minor International Public Company Limited (“MINT”) posted a threefold increase in core net profit of THB 7,132 million, setting a new bar for the highest annual profit in the history of the company. A global leader in the hospitality and tourism industry with a presence across 63 countries, MINT benefited from the robust performance of its European operations while also recording a resurgence in demand for travel in Thailand. For 4Q23, MINT closed the year on a high note with core net profit of THB 2,501 million, an impressive 77% y-y increase on a like-for-like comparison. Growth in profitability was attributable to all of MINT’s core business units.
For Minor Hotels, 4Q23 RevPar of Thailand and European & LATAM hotels experienced 15% y-y growth, and achieved 23% and 27% increases, respectively, compared to the same period in 2019. Throughout 2023, Minor Hotels achieved an overall RevPar that exceeded 2022 and 2019 figures by 30% and 31%, respectively. Minor Food also recorded 11% y-y growth in its 2023 total system sales, driven by a resurgence in dine-in activities as well as innovative product and marketing strategies across all hubs. This growth in both top and bottom line reaffirms the strength of MINT’s diversified business model and its ability to leverage positive momentum in the global tourism and restaurant industries, as well as disciplined cost management, enhanced productivity, and stronger profit flow-through.
MINT is off the block with a strong start in 2024 with room revenues in January and on-the-book value in February and March surpassing the levels recorded in 2023 by 39% for Thailand and 20% for Europe. MINT’s course to deliver profitable and resilient growth in 2024 is underpinned by a commitment to deliver exceptional value to shareholders and customers.
Over the next three years, MINT aims to expand its portfolio by adding 200 – 250 new hotels and 1,000 restaurants, reaching a total of 780 hotels and 3,700 restaurants. This ambition is supported by a robust pipeline of opportunities and strategic focus towards an asset-light model, hotel management contracts and food franchising, to drive sustainable growth while minimizing capital expenditure, whilst focusing on emerging markets in addition to other markets.
Recent developments serve as tangible evidence of MINT’s dedication to expanding its global presence, especially in prominent international destinations. These include the addition of three managed hotels in Paris under NH and NH Collection, the debut of luxurious Anantara hotel in Vienna and the introduction of NH Collection in Helsinki. Furthermore, MINT’s strong hotel expansion pipeline includes the entry of Anantara and Avani into the Kingdom of Saudi Arabia, alongside multiple new openings in MINT’s already thriving Middle Eastern markets, as well as the launch of multiple managed hotels in China to capture both domestic and international tourism. Minor Food will also strengthen its presence in ASEAN with the opening of franchised restaurants in Vietnam and Singapore under Sizzler, The Coffee Club and The Pizza Company brands. MINT has also acquired a platform in Indonesia to operate Dairy Queen and launch The Pizza Company, Swensen, and GAGA. The above will contribute further to our expansion into other high-growth markets, particularly within ASEAN.
MINT’s three-year goals are not only expected to boost profitability but also generate substantial operating cash flows. Such cash flows will be utilized to expedite the company’s deleveraging plan, aimed at reducing its net interest-bearing debt to equity ratio from 1.0x at the end of 2023 to 0.8x by the end of 2024. Doing so during high interest environment will serve to further enhance earnings growth power. MINTs stronger Balance Sheet will further allow to refocus on major growth opportunities with the combination of “Asset light” growth.
MINT’s Group CEO, Mr. Dillip Rajakarier, expressed his enthusiasm for the company’s achievements, stating, “We are pleased to report our outstanding performance in 2023. The results reflect the dedication and hard work of all our teams across all 63 countries. As we move forward, our focus remains on expanding our footprint, driving sustainable growth, reducing debt and creating long-term value for our shareholders.”
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