‘Minor International’ Maintains Strong Outlook for 2H23 as EBITDA Margin Reaches Pre-Covid Level

Minor International Public Company (SET: MINT) expects the company to maintain its strong performance in the third quarter and also the final quarter of 2023, boosted by peak season in Europe and Thailand, pushing profit margin to near pre-Covid level.


Mr. Chaiyapat Paitoon, Chief Financial Officer of MINT, shared his overall outlook on the third quarter performance with ‘Kaohoon,’ stating that that strong momentum was carried over from the second quarter that the company had a quarterly record high in net profit as there are two months remaining of seasonal peak for Europe, which are September and October.

The CFO noted that bookings in the system showed higher numbers than the same period last year as the momentum in tourism continues, while seeing a shift in customers behaviour from only leisure travelling to leisure and MICE (meetings, incentives, conferencing & exhibitions).

Meanwhile, Thailand is entering its peak season and the number of tourist arrivals is increasing continuously. The recently announced visa-fee exemption measure for Chinese and Kazakh tourists should help boost MINT’s operations in Thailand as well.

The hotel business remains MINT’s main driver, and the F&B business, which has been supporting the company since Covid-19 outbreak, should continue to reinforce the company’s business that is now going full steam after the pandemic eased.

Mr. Paitoon noted that room rate has already surpassed pre-Covid level, especially hotels in Europe that topped the 2019 rate by around 40%, helping offset rising costs and resulting in higher profit margin. Occupancy rate in the second quarter 2023 was 2-3 basis points lower than the pre-Covid level, but due to an acceleration in room rate, the company was able to record higher revenue.

“Based on bookings and trend, we are quite confident that EBITDA margin should recover to or top pre-Covid level,” said Mr. Paitoon. “Meanwhile, NPAT margin should edge closer to the 2019 level, considering higher interest rates that weighed on the figure”.

MINT’s EUR 500 million Syndicated Sustainability-Linked Loan (SLL) showed that domestic and international institutions put their trust in the company’s operation, especially on the scope of ESG (environmental, social, and corporate governance).

“More importantly, our 500 hotels worldwide will benefit from the Chinese outbound,” said the CFO.