Minor International

RNS Number : 6883A

Symphony International Holdings Ltd

24 February 2014

 



Not for distribution, directly or indirectly, in or into the United States or any jurisdiction in which such distribution would be unlawful.

24 February 2014

Symphony International Holdings Limited ("SIHL" or the "Company")

Update on Minor International Pcl

The Company is pleased to announce that one of its portfolio companies, Minor International Pcl ("MINT"), released fourth quarter results for the 2013 financial year.

MINT made an announcement on 20 February 2014, which is reproduced below.

MINOR INTERNATIONAL PCL
PRESS RELEASE - 20 FEBRUARY, 2014	FOR IMMEDIATE RELEASE

MINT REPORTS 4Q13 NET PFOFIT GROWTH OF 34%

IN SPITE OF THAI POLITICS

Minor International (MINT) reported 4Q13 net profit of Baht 1,556 million, a 34% increase from the same period last year, attributable to improved performance of all three business units. Full-year 2013 net profit surged 26% to another record- high Baht 4,101 million. If the one-time insurance claims received in 2012 following the floods in 2011 are excluded, net profit increase would be of larger magnitude at 33% in 2013. The results reflect the Company's strong focus on strategic expansion and disciplined execution, in order to stay well-positioned for long-term growth. In addition, MINT's Board of Directors declared a cash dividend of Baht 0.35 per share, payable on April 30^th, 2014, to shareholders on record as of April 18^th, 2014. The dividend payment is subject to MINT's shareholder approval at the Annual General Meeting of Shareholders to be held on April 2^nd, 2014.

Our commercial segments comprising hospitality, restaurant and retail trading businesses, continued to outpace the overall market in terms of performance. The full-year consolidation of Beijing Riverside & Courtyard (Riverside) in China, since the acquisition in December 2012, has also contributed to growth. MINT's strong business foundation with high barriers to entry, coupled with well-planned diversification strategy that the firm has implemented alongside its expansion strategy over the past several years, have buffered the Company from the slowdown in domestic consumption in the second half of 2013 and the political demonstrations in Bangkok during the last two months of the year. Revenue contribution from overseas markets has increased remarkably from 4% in 2007 to 38% in 2013, with the figure expected to continue growing in the coming years.

During 4Q13, MINT continued to drive its business to pave the way for even more robust performance in the future. The Company invested in Peace Haven Resorts Limited to develop Anantara hotel in Tangalle in Sri Lanka and acquired a 50% stake in NIYAMA under the Per AQUUM brand in the Maldives. The pipeline of management contracts continued to grow, with the opening of Anantara Chiang Mai, AVANI Atrium Bangkok, Anantara Dubai the Palm and Anantara Sir Bani Yas Island Al Sahel Villa Resort in the UAE. The wholly-owned subsidiary Oaks Hotels & Resorts also continued expanding its business under the Management Letting Rights (MLRs) model, with the opening of Oaks Moranbah, Oaks Middlemount and Oaks Bowen Hills, together with the acquisitions of Oaks Cypress Lakes and Oaks Broome. Grand Hotel in Gladstone under Oaks was opened in late December. MINT also launched a new restaurant concept, Penang Street, in Singapore and opened a flagship store for its latest fashion brand Pedro in Bangkok.

In 4Q13, net profit of MINT's hospitality business increased by 30%, driven by strong performance of hotel operations, including the Company-owned hotels and managed hotels, as well as solid profit growth of mixed-used real estate business. Despite the political events towards the end of the year, MINT's 4Q13 organic hotel portfolio witnessed year- on-year increases in occupancy, average daily rate (ADR) and revenue per available room (RevPar). Hence, the impact of political events in Bangkok on MINT remained muted, especially with revenue from hotels in Bangkok contributing approximately 7% of MINT's total revenue. For the full year, MINT's hospitality business achieved a 26% increase in net profit. Robust tourism paired with MINT's concerted efforts to broaden its distribution channels of the hotel rooms to new market segments have helped propel organic occupancy of the owned hotels to 70% in 2013 versus 66% in 2012. Improved occupancy coupled with a further 8% increase in organic ADR contributed to a 15% increase in organic RevPar of owned hotels, which contributed 43% of total hospitality revenue. In addition, the management income almost doubled in 2013 primarily as a result of the new hotels opened and operational during the year. MINT's real estate business, which comprises residential development and Anantara Vacation Club, also saw its profit increase 16% in 2013. Additional purposed-built inventory added to Anantara Vacation Club's portfolio, together with the launch of the The Residences by Anantara, Phuket, should underpin another strong year for the real estate segment in 2014.

In 4Q13, net profit of MINT's restaurant business increased 48% from the same period of last year, largely driven by 14.3% increase in system-wide sales and the consolidation of Riverside in China in December 2012. For similar reasons, net profit of restaurant business grew by 27% in 2013. Full-year system-wide sales increased by 13.8% as a result of 1.5% same-store-sales growth together with the addition of 163 new outlets. In spite of recent deceleration in consumption and political events, the Company's leading position in the market and its on-going efforts to strategize its menu and marketing campaigns to drive traffic, continued to propel sales growth and profit margin. 2013 also marked the financial turn-around of MINT's restaurant business in China, which passed break-even point as planned.

In 4Q13, net profit of retail trading and contract manufacturing increased by 13% on the back of improved performance of fashion business. In 2013, core net profit (excluding one-time insurance claims in 2012) of retail trading and contract manufacturing increased more than fivefold due to stronger performance of fashion business, together with the recovery of the contract manufacturing business as Navasri Manufacturing plant became fully operational again in 2013.

About Minor International: Minor International (MINT) is a global company focused on three primary businesses including restaurants, hotels and lifestyle brands distribution. MINT is one of Asia's largest restaurant companies with over 1,500 outlets operating system-wide in 19 countries under The Pizza Company, Swensen's, Sizzler, Dairy Queen, Burger King, Thai Express, The Coffee Club, Ribs and Rumps and Riverside brands. MINT is also a hotel owner, operator and investor with a portfolio of 103 hotels and serviced suites under the Anantara, AVANI, Oaks, Per AQUUM, Marriott, Four Seasons, St. Regis, Elewana and Minor International brands in Thailand, Australia, New Zealand, the Maldives, Vietnam, Tanzania, Kenya, the Middle East, Sri Lanka, China, Malaysia, Indonesia, Cambodia and Mozambique. MINT is one of Thailand's largest distributors of lifestyle brands focusing primarily on fashion, cosmetics and contract manufacturing. Its brands include Gap, Esprit, Bossini, Charles & Keith, Pedro, Red Earth, Tumi, Zwilling J.A. Henckels, ETL Learning and Thaisal .For more information, please visit www.minorinternational.com.

Performance (Bt m)

	4Q13	4Q12	% Change	2013	2012	% Change
Total Revenues	10,094	8,860	14%	36,936	32,994	12%
Cost of Sales	3,469	3,273	6%	13,189	12,466	6%
Selling & Administrative	3,927	3,566	10%	15,443	13,465	15%
EBITDA	2,699	2,021	34%	8,304	7,063	18%
Depreciation & Amort.	656	551	19%	2,420	2,175	11%
EBIT	2,043	1,469	39%	5,884	4,888	20%
Interest Expenses	242	261	-7%	1,027	1,085	-5%
Earnings Before Tax	1,801	1,208	49%	4,857	3,803	28%
Corporate Tax	216	43	399%	675	556	22%
Minority Interest	28	6	387%	80	4	2020%
Net Profit as Reported	1,556	1,159	34%	4,101	3,243	26%
Fully Diluted EPS as Reported (Bt)	0.3889	0.3059	27%	1.0447	0.8708	20%
Fully Diluted Shares (mn)	4,002	3,788	6%	3,926	3,725	6%

Note: Share of Profit is included in total revenues

For further information:

Chaiyapat Paitoon / Jutatip Adulbhan              [phone]

Minor International

Neil Doyle/ Tom Willetts 
                                 [phone]/ 7175

FTI Consulting

About Symphony International Holdings

Symphony International Holdings (LSE:SIHL) is a London listed strategic investment company that invests in consumer businesses and develops luxury branded real estate, hospitality and healthcare ventures which are principally in Asia. It offers a way for investors to gain exposure to the rising disposable incomes and wealth in fast growing economies. Symphony's objective is to provide superior capital growth by investing in high quality companies and forming long-term business partnerships with talented entrepreneurs. Symphony is managed by Symphony Investment Managers which has a team of investment professionals with a broad range of expertise - many of them have been working in Asia for more than 25 years. For more information please visit our website at www.symphonyasia.com

No representation or warranty is made by the Company as to the accuracy or completeness of the information contained in this announcement and no liability will be accepted for any loss arising from its use.

This announcement is for information purposes only and does not constitute an invitation or offer to underwrite, subscribe for or otherwise acquire or dispose of any securities of the Company in any jurisdiction. All investments are subject to risk. Past performance is no guarantee of future returns. Prospective investors are advised to seek expert legal, financial, tax and other professional advice before making any investment decisions.

This announcement is not an offer of securities for sale into the United States. The Company's securities have not been, and will not be, registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an exemption from registration. There will be no public offer of securities in the United States.

Neither the content of the Company's website (or any other website) nor the content of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this Document.

The Company and the Investment Manager are not associated or affiliated with any other fund managers whose names include "Symphony", including, without limitation, Symphony Financial Partners Co., Ltd

End of Announcement

 

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