Minor International: STRONG PERFORMANCE IN 3Q22 WITH PROFITS OF BAHT 4.6 BILLION EXCEEDING PRE-PANDEMIC LEVELS


PRESS RELEASE – November 10, 2022

FOR IMMEDIATE RELEASE

STRONG PERFORMANCE IN 3Q22 WITH PROFITS OF BAHT 4.6 BILLION EXCEEDS PRE-PANDEMIC LEVELS

Minor International Public Company Limited (“MINT”) today announced its third quarter 2022 financial results, reporting a profit of 4.6 billion baht for 3Q22, compared to a loss of 436 million baht for the 3T21. For 9M22, MINT recorded a profit of 2.4 billion baht, a significant turnaround from a loss of 11.6 billion baht for 9M21. On a basic basis, excluding non-recurring items, MINT recorded a basic profit of 2.0 billion baht for 3Q22, surpassing pre-pandemic levels in 3Q19 for all three business units. This is a significant turnaround from the basic loss of 2.4 billion baht in 3Q21 and a qq sequential improvement in basic profit of 1.2 billion baht in 2Q22. These results reflect the continued recovery in demand as well as MINT’s sustained efforts to generate both results in terms of turnover and profit. MINT’s balance sheet position continues to strengthen, due to higher earnings generation and active debt management, leading to a further reduction in the leverage ratio at the end of 3Q22.

Minor Hotels’ strong financial results continued in 3Q22, with a basic profit of 1.5 billion baht reflecting a turnaround from a basic loss of 2.4 billion baht in the same period of the year. prior year and a 32% increase over 2Q22 base earnings. Strong growth in leisure and business travel demand across all key geographies fueled this core earnings growth. Hotels in Europe and Latin America posted historically strong operating results in the third quarter as a strong rebound in the business and corporate segments, as well as leisure demand, lifted RevPar to a higher level 21% compared to 2019 in EUR, mainly thanks to an ADR increase. Similarly, the RevPar of the Australian and Maldivian portfolios of Minor Hotels also remained well above pre-COVID-19 levels, while increased international tourist arrivals and room rate strength saw the RevPar of its Thai hotels to reach 75% of pre-pandemic levels.

Minor Food’s 3Q22 core profit of 399 million baht improved significantly in both yy and qq, demonstrating an increase in restaurant business and its ability to operate more efficiently while generating higher revenue. Minor Food’s China hub returned to profitability during the quarter, thanks to the relaxation of COVID-19 measures in key cities since June 2022 and the operational adaptability of the hub to the requirements of different cities. Despite continued COVID-19 control measures in some regions, most stores in China were able to resume catering and delivery services during the quarter. Thailand and Australia hubs continued to generate higher profits in 3Q22, driven by successful efforts to maximize in-store traffic through strong and innovative core product categories, e.g. Thailand ice cream and coffee in Australia. As a result, group-wide same-store sales increased 16.6% year-on-year. Along with the expansion of outlets and the reopening of temporarily closed stores last year, total system sales jumped 41.3% year-on-year and were 2% above pre-pandemic levels. in 2019. Meanwhile, Minor Lifestyle’s 3Q22 core profit turned positive at 72 million baht after a 86 million baht core loss in the same period last year due to traffic higher in stores and increased operational efficiency.

MINT remains fully focused and determined to strengthen its balance sheet. Net debt repayment, coupled with a higher equity base through profit generation and asset sales, significantly reduced MINT’s net interest-bearing debt to equity ratio to 1, 19x at the end of 3Q22, compared to 1.36x at the end of 2021 and 1.30x at the end of June 2022. At the same time, MINT maintained strong liquidity with 27 billion baht of cash in hand and 30 billion baht of unused credit facilities at the end of 3Q22. Along with stronger operating results, average free cash flow in the quarter was positive at 5.8 billion baht.

Going forward, the solid positive infrastructure of forward hotel and food reservations will set the stage for MINT to achieve record performance. MINT expects its European hotel hub to continue to see the return of international long-haul travel from North American and Asian markets, large-scale trade events and trade fairs, and growing demand from large companies.

Airlines are increasing capacity in key destinations, boosting arrivals for hotels in Thailand and elsewhere. The continued recovery of long-haul flights should be another catalyst for strong growth. Portfolios in the Maldives, Australia and the Middle East should continue to benefit from positive demand, which will allow them to continue to increase room prices. Minor Food continues to innovate with new store formats, its brand loyalty platform as well as the development of new products. Recently, the Chicken Chicken concept was successfully launched in Thailand. At the same time, MINT is looking for opportunities to capture even more operational efficiencies to further enhance the sustainable success of the business. Energy contract pricing, particularly in Europe, is already mostly locked in for 2022 and 2023, bolstering society’s confidence in managing inflation concerns, while accelerating debt repayment and interest rate hedging will help better manage interest rate costs. In addition to the early repayment of a €100 million floating rate ICO loan in August 2022, NH Hotel Group expects to repay an additional €100 million in December, much earlier than expected.

Mr. Dillip Rajakarier, CEO of MINT Group, commented, “Our strong third quarter financial results demonstrate the strengths and resilience of MINT across all business units. I am proud of our employees who have gone above and beyond for our guests and customers during the challenging period we have just emerged from. grateful that we continue to exceed our customers’ expectations and their support. With the operational performance of all three business units already exceeding pre-COVID-19 levels, we are extremely confident in the success of our responsible growth strategy through a portfolio of leading hotel and restaurant brands Positive momentum should allow us to weather macroeconomic pressures With careful management of resources, we are optimistic that we will continue to deliver strong results in 2023 with improved margins.

About Minor International: Minor International (MINT) is a global company focused on three main activities: hotels, restaurants and the distribution of lifestyle brands. MINT is a hotel owner, operator and investor with a portfolio of over 520 hotels under the Anantara, Avani, Oaks, Tivoli, NH Collection, NH, nhow, Elewana, Marriott, Four Seasons, St. Regis and Radisson Blu brands in 56 country. across Asia-Pacific, the Middle East, Africa, the Indian Ocean, Europe, South and North America. MINT is also one of Asia’s largest catering companies with over 2,400 system-wide outlets in 23 countries under The Pizza Company, The Coffee Club, Riverside, Benihana, Thai Express, Bonchon, Swensen’s, Sizzler, Dairy Queen, Burger King and Coffee Journey. MINT is one of Thailand’s largest distributors of lifestyle brands and contract manufacturers. Its brands include Anello, BergHOFF, Bossini, Charles & Keith, Esprit, Joseph Joseph, Radley, Zwilling JA Henckels and Minor Smart Kids. For more information, please visit www.miner.com.

Press contacts: Chaiyapat Paitoon / Namida Artispong on tel. : (662) 365-7500

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pcl international minor published this content on November 10, 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unmodified, on November 10, 2022 06:46:04 UTC.

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2022 sales 112B
3,054 million
3,054 million
2022 net income 1,556 million
42.3 million
42.3 million
Net debt 2022 104B
2,821 million
2,821 million
PER 2022 ratio 111x
2022 return 0.13%
Capitalization 153B
4,159 million
4,159 million
EV / Sales 2022 2.29x
EV / Sales 2023 1.93x
# of employees
Floating 84.4%

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Number of analysts 17
Last closing price THB29.00
Average target price THB36.67
Average Spread / Target 26.5%


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