It seems like 2025 is set to be a game-changing year for Dusit International. With a mix of optimism and strategic maneuvers, the company announced projections for a staggering 16 billion baht in revenue. This anticipated windfall hinges largely on the performance of their residential properties, marking a definitive turnaround from past financial hurdles. Dusit International’s CEO, Suphajee Suthumpun, radiates confidence about the near future, claiming the company is well on its way to profitability, despite the rough patches in previous years. “Dusit International is on track for a strong turnaround,” she declared. Suphajee noted that with 90% of units sold, revenue recognition from Dusit Residences and Dusit Parkside is expected to take off in the fourth quarter this year.
The residential aspect of the Dusit Central Park development is proving to be a solid pillar for financial growth. Once the keys are handed over to proud new owners, the fiscal flow is set to begin. “If there are no unexpected disruptions, we will start generating revenue from these residences this year,” Suphajee reassured stakeholders.
Financial hurdles certainly bedeviled Dusit in the past. Despite enjoying a total revenue of 11.2 billion baht last year and an EBITDA of 1.65 billion baht, the company grappled with a net loss of 237 million baht. This was largely attributed to the formidable interest payment of 578 million baht on a 6 billion baht loan, flaunting a 5.7% interest rate. Yet, Suphajee seemed unfazed by this oversight. Rather than seek further capital during the trying times of the pandemic, Dusit relied on perpetual debentures and accessible short-term loans.
“Once we start receiving income from the residential transfers, we will be able to reduce interest expenses and improve our bottom line,” Suphajee remarked, projecting financial relief set to unfurl within the year, allowing more room for growth and expansion.
Adding a feather to their cap, Dusit anticipates growing revenue by 20-25% in 2025, targeting a heady 9 billion baht. A pivotal element to this growth strategy is the diversification of revenue streams. Dusit has deftly decreased its reliance on hotel revenue from a steep 90% to 67%, while cranking up contributions from its food and education sectors to a fresher 18% and 5%, respectively. Suphajee highlighted that although Thai tourism prospects look a tad muted, the fully operational new Dusit Thani Bangkok and over 294 properties across 18 countries should buoy hotel revenue soaring by 20-25%.
Switching topics to Dusit Foods, which clinked a net loss of 20 million baht, Suphajee attributed this rough ride to strategic investments in burgeoning partnerships designed to bolster revenue. The company has sifted through and trimmed unprofitable food businesses to focus on potential winners, reported the Bangkok Post.
As whispers of a possible delisting from the stock market surfaced, Suphajee confidently countered by saying this event is unlikely. Dusit remains firmly on the path of its nine-year strategic roadmap, steering clear of the pitfalls plaguing less-prepared contemporaries. As Dusit International pushes forward, one can sense the excitement bubbling beneath the surface, a feeling that says, “This is just the beginning, and the best is yet to come.”
Dusit International seems overly optimistic with these projections. A jump from a net loss to booming revenue sounds too good to be true to me.
I agree, but optimism is crucial in business. Plus, they have a solid strategy with the residential properties.
True, but depending heavily on residential properties might be risky. Market shifts could derail their plans.
Without optimism, how would companies ever turn around? You have to believe in your strategy to succeed.
It’s impressive how they’re mitigating risk by diversifying revenue streams. Reducing their reliance on hotel revenue makes a lot of sense.
But don’t you think they should focus more on their core business first?
Diversification can safeguard against future downturns in the hotel industry. It’s a smart move.
With Thai tourism struggling, I doubt they’ll hit those ambitious revenue targets for 2025. They need a miracle.
Not necessarily a miracle. Strategic investments and a solid game plan can make it happen.
Fair point but counting on multiple sectors both flourishing might be a stretch.
I don’t understand why they didn’t seek additional capital when they were struggling with loan payments. Seems shortsighted.
Accessing perpetual debentures and short-term loans was likely a way to avoid more debt during uncertain times.
I suppose, but isn’t long-term strategy about balancing risks effectively?
The 9 billion baht target isn’t far-fetched if they execute well on residences and the education sector.
Instead of guessing future successes, let’s be skeptical about their historical data. They need better financial management.
Really curious about their decision to trim food businesses, though. Not confident in that pivot to ‘potential winners.’
Dusit seems to have a clear roadmap but what if future hurdles like a pandemic hit again? Hoping they are adaptable.
Excited to see how Dusit copes with the slow tourism recovery. New Dusit Thani Bangkok could be a game-changer.
It’s easy to project huge numbers while staying positive. A deeper dive into how they plan to overcome financial losses is needed.
Numbers look promising with 90% of units sold. That speaks volumes about their market confidence.
Those perpetual debentures might be a ticking time bomb if they don’t achieve revenue goals.
Reducing dependency on hotels is a masterstroke! Hotels are too unpredictable with all the global uncertainties.
If they manage to steer clear of delisting, it’s a win. Their nine-year plan certainly has ambition!
Ambition is fine, but practicality and execution are far more critical to avoid delisting.
Would like to hear more about their education sector ideas. Could be lucrative if marketed well.
I’m interested too. Education is booming everywhere; it’s a fantastic secondary revenue stream!
So, the CEO is optimistic! Aren’t they all? The real test will be how they navigate the unexpected disruptions and financial challenges.