Stocks and Financial Services Press Releases Thursday August 15, 2019 11:57
Bangkok--15 Aug--Minor International

Minor International Public Company Limited ("MINT") announced core net profit (excluding non-recurring items) of Baht 2,101 million in 2Q19, a record high second quarter net profit, and nearly double core net profit of Baht 1,084 million in 2Q18. The sale & leaseback of the 3 hotels in Portugal which were completed in July would generate approximately Baht 2,100 million in net profit, and this amount will be reported in 3Q19. Including non-recurring items, MINT reported total net profit of Baht 1,786 million in 2Q19, compared to total net profit of Baht 1,205 million in 2Q18. For the first half of 2019, MINT's core net profit was Baht 2,734 million and reported net profit was Baht 2,369 million.

The 94% increase in MINT's 2Q19 core net profit compared to the same period last year was attributable to the consolidation of NH Hotel Group as well as strong results from MINT's hotel operations. While the consolidation of NH Hotel Group contributed Baht 1,461 million of net profit in 2Q19, the net profit of MINT's hotel operations excluding NH Hotel Group almost tripled during the period. These increases offset the slowdown in the management letting rights business in Australia, the real estate business and the weak performance of Minor Lifestyle. While Minor Food in Thailand was impacted by the soft domestic consumption, it was partially mitigated by the China hub which performed well and reported net profit in 2Q19 compared to net loss in 2Q18, following positive same-store-sales growth and outlet expansion.

The increase in net profit of MINT's hotels operations (excluding NH Hotel Group) by almost three folds in 2Q19 compared to 2Q18 was driven by MINT's owned hotel portfolio, and particularly MINT's own brands, Anantara and Tivoli. Excluding third party-managed hotels, namely Marriott, Four Seasons, St. Regis and Radisson Blu, net profit of hotels under MINT's own brands (excluding NH Hotel Group) increased by a much higher rate of 25 times. Contributing to MINT's second quarter performance, NH Hotel Group also posted strong earnings growth in 2Q19. NH Hotel Group reported net profit of EUR58 million in 2Q19, a 35% increase from 2Q18, attributable to improved business, effective cost control and lower financing costs. MINT began to consolidate NH Hotel Group's financial results in October 2018.

MINT reiterates its confidence in full-year 2019 performance, backed by its business and geographical diversification and the long-term fundamental strength of its businesses. NH Hotel Group has demonstrated strong first half performance, where it has outperformed its competitors in Europe, and its prospects remain solid for the rest of the year. Moreover, going forward MINT will start to realize benefits from the first integration initiative with NH Hotel Group - the transfer of Tivoli operations to NH Hotel Group. With the government's policies to stimulate growth of the country, Thailand's economy and domestic consumption is expected to gradually improve.

In July 2019, MINT successfully completed the strategic and accretive sale-and-lease back transaction of three Tivoli hotel assets in Portugal, as part of its plan to strengthen its balance sheet position. MINT will realize the gain on the sale of these asset of approximately EUR62 million (over Baht 2.1 billion) in 3Q19, which will help increase its equity base. The net proceeds from the transaction were used to repay MINT's financial obligations, which will help the company to reduce its debt-to-equity ratio to its internal target of 1.3x by the end of 2019 as previously guided.

About Minor International: Minor International (MINT) is a global company focused on three core businesses: hospitality, restaurants and lifestyle brands distribution. MINT is a hotel owner, operator and investor with a portfolio of 524 hotels under the Anantara, AVANI, Oaks, Tivoli, NH Collection, NH Hotels, nhow, Elewana, Marriott, Four Seasons, St. Regis, Radisson Blu and Minor International brands in 54 countries across Asia Pacific, the Middle East, Africa, the Indian Ocean, Europe, South and North America. MINT is also one of Asia's largest restaurant companies with over 2,200 outlets system-wide in 27 countries under The Pizza Company, Swensen's, Sizzler, Dairy Queen, Burger King, Thai Express, The Coffee Club, Riverside and Benihana brands. MINT is one of Thailand's largest distributors of lifestyle brands and contract manufacturers. Its brands include Anello, Bodum, Bossini, Brooks Brothers, Charles & Keith, Esprit, Etam, Joseph Joseph, OVS, Radley, Save My Bag, Scomadi, Zwilling J.A. Henckels and Minor Smart Kids. For more information, please visit

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