Minor International Public Company Limited (MINT) reported a remarkable net profit of THB 3,969 million for the first half of 2024, reflecting an impressive 74% jump compared to the same period in 2023. This stellar profit growth leverages last year’s strong net profit base and showcases the resilience of MINT’s robust business model amidst a buoyant global travel industry. MINT’s core profit for the first half of 2024, excluding extraordinary items, exhibited a solid 22% year-on-year increase.
In the second quarter of 2024, MINT achieved a record-breaking performance with core profit soaring to THB 3,230 million, marking an 8% year-on-year surge. This growth was predominantly driven by the flourishing operations of their hotels in Europe and the Americas at the onset of their high season. Both business and leisure demands remained robust across MINT’s hotel portfolio in these regions, with second-quarter 2024 Revenue Per Available Room (RevPAR) for owned and leased hotels rising by 8% year-on-year. This growth was spurred by a 7% increase in the Average Daily Rate (ADR) and a one percentage point rise in occupancy, with significant gains noted in Madrid, Venice, and various cities in Germany, bolstered by the excitement of the UEFA European Football Championship in June 2024.
Beyond Europe and the Americas, MINT’s hotels in Thailand also experienced substantial growth, with RevPAR jumping by 14% year-on-year in the second quarter of 2024. This uplift reflects a surge in international tourist arrivals to Thailand, especially from key markets like the US, China, Europe, India, and Australia. The year-on-year growth in occupancy rate by 5 percentage points and ADR by 4% underscores Thailand’s enduring charm as a top-tier travel destination and the strength of MINT’s asset portfolio. Hotels in Samui, Phuket, and Bangkok notably outperformed with year-on-year RevPAR growth of 32%, 10%, and 11%, respectively. Moreover, Minor Hotels’ mixed-use businesses, particularly the lifestyle retailing division with Pop Mart Thailand, significantly boosted the segment’s profitability, with six flourishing stores in Bangkok.
Minor Food also delivered exceptional results in the second quarter of 2024, propelled primarily by its operations in Thailand and Singapore. Total system sales in Thailand, Minor Food’s largest market, grew by 7.4%, while Singapore saw a whopping 12.8% increase. This growth reflects Minor Food’s strong market presence in both regions. The success was driven by well-received loyalty programs and innovative products as dine-in demand surged. For instance, Sizzler’s inventive combo menu featuring a salad bar buffet and top-selling proteins, and The Pizza Company’s single-served BiTE for delivery, substantially widened their customer base. This led to strong same-store sales growth of 7.1% for Sizzler and 2.8% for The Pizza Company. By leveraging their scale to enhance profitability margins and through robust joint venture investments, Minor Food’s core profit surged by 36% year-on-year for the second quarter of 2024.
Owing to MINT’s robust performance and strong equity base, the company has successfully reduced its net interest-bearing ratio to 0.96x as of June 30, 2024, from 1.01x at the end of December 2023. This reduction was accomplished despite ongoing investments in expansion, property upgrades, rebranding, and dividend payments of THB 0.32 per share during the second quarter.
MINT has also expanded its hospitality footprint by opening several new hotels in the first half of 2024. This includes a leased hotel in Finland and managed hotels in South Africa, the Maldives, Sri Lanka, and Thailand. Important milestones include the launch of MINT’s first NH hotel in Johannesburg, South Africa, and four managed hotels under the NH and NH Collection brands in Sri Lanka and the Maldives, complementing Minor Hotels’ existing portfolio in these regions. Furthermore, Minor Food has expanded its Dairy Queen business into new Indonesian cities like Bali and Banten, following strategic investments made earlier this year. Indonesia presents secular growth opportunities, reinforcing MINT’s commitment to achieving growth targets while transitioning towards an asset-light business model and diversified operations.
Group CEO Mr. Dillip Rajakarier conveyed confidence in MINT’s strong business prospects for the remainder of 2024. He noted, “With Europe gearing up for another high season in September and October packed with entertainment, sports, and business events, and Asia’s peak leisure season approaching in the fourth quarter, we are well-positioned to maintain our growth momentum. Our strategic initiatives and premium asset and brand portfolio ensure we seize these opportunities, expand our market presence, and deliver exceptional value to our shareholders and stakeholders. With robust cash flows expected in the second half, our liquidity position should strengthen, and our leverage ratio decrease further by year-end.”
About Minor International: Minor International (MINT) is a global powerhouse with key focus areas in hospitality and restaurants. MINT owns, operates, and invests in an extensive portfolio of over 550 hotels under renowned brands like Anantara, Avani, Oaks, Tivoli, NH Collection, NH, nhow, Elewana, Marriott, Four Seasons, St. Regis, and Radisson Blu, spanning 57 countries across Asia-Pacific, the Middle East, Africa, the Indian Ocean, Europe, and the Americas. MINT is also a leading name in Asia’s restaurant scene with over 2,600 outlets in 24 countries under brands such as The Pizza Company, The Coffee Club, Riverside, Benihana, Thai Express, Bonchon, Swensen’s, Sizzler, Dairy Queen, Burger King, Coffee Journey, and GAGA, plus over 1,000 further outlets through strategic alliances. For more information, please visit www.minor.com.
It’s impressive how MINT keeps growing despite global challenges in the tourism sector.
Exactly, their diversification strategy and global presence seem to be paying off.
Diversification is definitely key, plus their market presence in both luxury and budget segments.
I agree, but I wonder if they can sustain this growth with rising operational costs.
It’s not just strategy, their adaptable business model is what keeps them ahead.
I think the real surprise is how well their food division is doing.
Yeah, but isn’t that because people are shifting to more affordable dining options?
Partially. Also, their loyalty programs and promotional strategies are top-notch.
True, but their innovative menu options can’t be ignored either.
I love how they keep introducing new products. Keeps the menu exciting!
Growth in Europe and the Americas is no surprise given the travel resurgence post-COVID.
Let’s not forget the UEFA Euro 2024. That event alone must have contributed massively.
Absolutely, major events always spike hotel occupancy and revenues.
Yeah, but will this trend continue after the event season is over?
I hope MINT isn’t expanding too aggressively. It could backfire.
Sometimes taking risks pays off. Look at their current performance!
Sure, but a few bad quarters and all this progress could evaporate.
Agreed, high growth is often accompanied by high risk.
Their balance sheet seems strong enough to handle some pitfalls.
It’s fascinating how tourist numbers in Thailand keep climbing. It’s like a forever-popular destination.
Thailand has a unique charm that’s hard to resist. Plus, it’s cost-effective.
So true! The value for money there is unbeatable.
And let’s not forget the amazing food and culture.
Reducing the net interest-bearing ratio is a huge win. Shows they are managing their debt wisely.
Indeed, a lower leverage ratio reflects strong financial health and prudent management.
Absolutely, it’s a good sign for future investments.
True, it also means they’ve got more room for future expansion if needed.
Opening new hotels in diverse markets like Finland and South Africa shows real ambition.
But isn’t it risky to spread too thin? Focus is important too.
Good point, but diversification can also provide a safety net.
The synergy between their food and hotel operations is quite strategic.
Yeah, they understand how to leverage their brand across different sectors.
Cross-promotion between them probably helps too.
Definitely, it’s a smart way to maximize their market reach.
Expanding the Dairy Queen business in Indonesia is interesting. I wonder if it will pay off.
DQ has a pretty loyal customer base everywhere they go. Should be a hit.
I hope so. If it works, it could open doors to other Southeast Asian markets.
It’s a calculated risk in a growing market, which might very well pay off.
I’ve seen so many new Dairy Queens popping up in Southeast Asia this year!
It’s clear that MINT’s strategic planning is robust.
Agreed. They seem to have a good balance between growth and sustainability.
Exactly, and it’s not easy to maintain that balance.
Well, they didn’t get to their current size by being reckless.
Not sure if I trust their CEO’s optimism. CEOs always paint a rosy picture.
A fair point, but the numbers do support his statements for now.
Numbers can be manipulated. I’ve seen it happen before.
Healthy skepticism is good, but let’s hope for the best.