Minor reports Q1 profit rise

SET-listed Minor International Plc (MINT) reported a 17% rise in core net profit ex items to 1.92 billion baht in the first quarter, driven by its hotel and food operations.

But quarterly net profit fell by 46% from 3.57 billion baht year-on-year when accounting for a revaluation due to a one-time, 1.93-billion-baht contribution from the Tivoli acquisition.

Total revenue fell by 3% year-on-year to 15.3 billion baht in the first quarter of 2017.

The company attributed its first-quarter core net profit growth to the performance of Minor Hotels Group (MHG) and Minor Food Group (MFG), which managed to rebound after the national mourning period in the fourth quarter of 2016.

MHG reported 1.36 billion baht in net profit in the first quarter of 2017, a 21% rise year-on-year.

Revenue per available room (RevPar) for the company hotel portfolio grew by 6% year-on-year, driven by hotels in Bangkok, northern Thailand and Brazil and renovated properties in Portugal.

During the first quarter, renovation of the company’s Tivoli Sao Paulo Hotel propelled occupancy rates and RevPar in Brazil. In Portugal, the company’s Tivoli Marina Vilamoura Algarve Resort and Tivoli Oriente Lisboa Hotel underwent substantial renovations last year, similarly boosting occupancy rates and RevPar.

MHG hotels in Thailand showed improved performances, with RevPar growing in the first quarter of this year compared with the last two months of 2016, when RevPar declined.

Meanwhile, the Oaks business in Australia reported 7% RevPar growth, resulting from both occupancy and average daily rate increases.

In addition, MHG’s real estate business performed well in the three-month period. Anantara Vacation Club had strong revenue growth of nearly 30% year-on-year.

MHG forecasts continued strong performance for the rest of the year. Thailand is expected to maintain its position as an attractive destination for tourists, while the company’s business in Portugal will benefit both from property renovations and perceptions that the country is a safe destination for Europeans, the company said.

MFG reported 12% net profit growth to 540 million baht, primarily driven by strong performances in both Thailand and China.

Back home, the company has outperformed the general industry with same-store sales growth of 2.6%.

The Pizza Company continued to perform well with new product initiatives and an upgraded sales channel platform, driven in part by the success of the mobile application.

Swensen’s performance rebounded after product and presentation improvements, together with effective marketing initiatives, with positive same-store sales growth throughout the first quarter, the company said. MFG’s China hub also continued to expand, delivering strong same-store sales growth in Beijing and Shanghai.

For the group, same-store sales growth was 1.3%, along with outlet expansion of 8% year-on-year, MFG reported.

MINT shares closed yesterday on the Stock Exchange of Thailand at 36.25 baht, down one baht, in trade worth 860.9 million baht.