MINT’s 1Q23 Results Surge YoY with Promising 2023 Strong Growth Outlook

Minor International Public Company Limited (SET: MINT) reported significantly improved financial results for the first quarter of 2023, with core EBITDA more than doubling y-y to Baht 6.9 billion from Baht 2.7 billion in the same period last year (a 150% y-y increase). The increase was due to robust travel demand and increased restaurant store traffic, together with the implementation of a dynamic pricing strategy and the addition of new hotels and restaurants to MINT’s portfolio. 

With effective cost management and higher revenue flow-through, MINT’s core EBITDA margin showed solid y-y expansion in the quarter as well, from 13.2% in 1Q22 to 21.1% in 1Q23. Although MINT reported a core loss of Baht 647 million in 1Q23, primarily due to expected and budgeted European business seasonality, it was a significant improvement from a core loss of Baht 3.6 billion in 1Q22. Minor Hotels reported significantly less losses in the period, while Minor Food’s profit more than quadrupled from previous year, driven by the lifting of local lockdowns in China and its leading market position in Thailand. 

Despite a high interest rate environment, MINT remains active in balance sheet management, reducing its net leverage ratio to 0.94 at the end of 1Q23 from 1.17x as at end 2022 through successful refinancing initiatives, including the issuance of Baht 10.5 billion unsubordinated perpetual debentures in the quarter. MINT’s stronger balance sheet with lower leverage ratio will provide capacity for aggressive, strategic growth toward achieving MINT’s financial goals. 

Mr. Dillip Rajakarier, Group CEO of MINT, reiterated his confidence in the Company’s outlook and performance for the remainder of 2023, underpinned by strongly positive global travel trends and MINT’s dynamic brand strategies for its restaurant business. 

“Hotel operating trends have been exceptionally strong, suggesting we may surpass our initial expectations”, Mr. Rajakarier commented. “Our hotels globally are poised to reap the rewards of cross-selling efforts, having successfully extended our brands beyond their traditional markets and tapping into new sources of business.”

Minor Hotels has implemented a broad range of initiatives including sales, marketing, social media and loyalty programs to promote and cross-promote its diverse brands into new markets. He further added, 

“Minor Food’s restaurant business sees increasing momentum, particularly in China, due to the rebound of domestic consumption in all regions as well as specific sales strategies deployed by each brand. To adapt to evolving market landscape and grow market share, Minor Food Thailand is focusing on brand refresh initiatives. Meanwhile, in China, the introduction of new menus as part of the brand uplift exercise is expected to result in strong sales, fueled by the sharp recovery of domestic consumption.”