Update on Minor International PCL

RNS Number : 9374X

Symphony International Holdings Ltd

23 February 2012

 



UPDATE ON MINOR INTERNATIONAL PCL

23 February 2012

Symphony International Holdings (LSE:SIHL or "Symphony"), the London listed investor in fast growing Asian consumer businesses, today announces that one of its portfolio companies, Minor International Pcl ("MINT"), has posted strong full year results for 2011.

MINT saw year-on-year profits soar by 133% to 2,880 million baht, despite the disruption caused by some of the worst flooding on record in Thailand and the uncertain global economy.

The profit growth has been attributed to an improvement in the performance of MINT's hospitality and restaurant businesses and a 1 billion baht extraordinary gain following the reclassification of an investment in the S&P restaurant and bakery business during the third quarter. However, MINT's core net profit still grew by 55% even when the S&P gain and a one-off goodwill impairment for an investment in China are excluded.

Anil Thadani, Symphony's founder and investment adviser, said: "MINT has seen a year of exceptional growth despite the global economic uncertainties, volatility in financial markets and the widespread flooding in Thailand. These results validate our strategy of investing in fast growing consumer businesses in Asia to provide superior long-term capital growth for our investors."

The release issued by MINT is below.

MINOR INTERNATIONAL PCL

PRESS RELEASE - 21 February 2012                               FOR IMMEDIATE RELEASE

MINT'S 2011 NET PROFIT UP 133% TO BAHT 2,880 MILLION

Minor International (MINT) reported 2011 net profit increase of 133% from 2010, despite the interruption of major floods in 4Q11, echoing the company's resilience to unexpected events. The increase in net profit was attributable to improvement in the performance of hospitality and restaurant businesses, together with the Baht 1 billion extraordinary gain on reclassification of investment in S&P in 3Q11. Excluding S&P gain and one-time goodwill impairment for investment in China, MINT still reported strong growth in core net profit of 55%. Throughout 2011, MINT continued to build for the future, acquiring 100% of Oaks Hotels and Resorts in Australia, additional 5% in S&P Syndicate, additional 30% in Thai Express in Singapore and 100% of Ribs and Rumps through its 50% joint venture, The Coffee Club, in Australia.

MINT's hospitality business includes company owned hotels, management of others' hotels and selling of residential properties and a point-based vacation club. 2011 EBITDA of the hospitality business rose by 91%, primarily from the solid performance of Oaks Hotels and Resorts in Australia which MINT started to consolidate in June 2011, and strong momentum of sales of St. Regis Residences in Bangkok, with over 50% of the inventory sold by the end of 2011. Sales of Anantara Vacation Club were 60% higher than budget in its first year of operation. It will become another one of the important contributors to the hospitality and property business over the next few years while sales of residential units should also continue its momentum in 2012. Moreover, apart from the expected occupancy improvement of existing hotels, two new hotels opened in early 2011, Anantara Kihavah in the Maldives and St. Regis Bangkok, which contributed losses in 2011, but should have strong positive contribution in 2012. The new brands, including newly acquired Oaks and newly-launched Avani, should also contribute favorably to the Group's revenue and earnings in the coming years.

The restaurant business continued to perform well with 2011 EBITDA growth of 65%, due to continuously strong operations and gain on reclassification of S&P investment in 3Q11. Excluding S&P gain and one-time goodwill impairment for investment in China, restaurant EBITDA still saw a solid growth of 10%. Despite the floods, total system sales rose by 14%, from same store sales growth of 9% and outlet expansion of 109 outlets in 2011. Performance of restaurant business is expected to remain solid in years to come on the back of strong domestic consumption and overseas expansion.

Retail trading and contract manufacturing business has been the most impacted by the floods, and reported 2011 EBITDA of Baht 4 million only. Up to 9M11, retail business EBITDA increased by 82%. However, write-off of fashion inventory and losses at NMT manufacturing affected by the floods resulted in a decline in 2011 EBITDA by 97%. The contract manufacturing business has partially resumed its production since December of 2011, and is expected to be fully operational by second quarter of this year. MINT expects to book insurance recovery from the floods in 2012.

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 1,200 outlets operating system wide in 18 countries under The Pizza Company, Swensen's, Sizzler, Dairy Queen, Burger King, Thai Express, the Coffee Club and Ribs and Rumps brands. MINT is also a hotel owner, operator and investor with a portfolio of 37 hotels and 38 serviced suites under the Anantara, Avani, Oaks, 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 and Indonesia. 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, Red Earth, Bloom, Smashbox, Tumi, Zwilling J.A. Henckels, and ETL Learning. For more information, please visit www.minorinternational.com

PERFORMANCE (BT M)
	4Q11	4Q10	%Change	2011	2010	% Change
Sales Others	7,116 229	5,024 271	42% -16%	26,001 1,276	18,140 949	43% 34%
Total Revenues Cost of Sales Selling & Administrative	7,345 2,595 3,380	5,296 1,906 2,334	39% 36% 45%	27,278 10,334 11,704	19,089 6,839 8,618	43% 51% 36%
EBITDA Depreciation & Amort.	1,369 535	1,056 395	30% 36%	5,240 1,980	3,633 1,571	44% 26%
EBIT Interest Expenses	834 275	662 115	26% 138%	3,260 879	2,061 458	58% 92%
Earnings Before Tax Corporate Tax Minority Interest	559 86 1	546 86 28	2% 0% -95%	2,380 415 47	1,603 291 76	48% 42% -38%
Net Profit from Operation	472	432	9%	1,919	1,236	55%
Gain from fair value adjustment on investment in S&P Less: One-time goodwill impairment for investment in China	- -	- -	0% 0%	1,054 93	- -	100% 100%
Net Profit	472	432	9%	2,880	1,236	133%
Fully Diluted EPS (Bt)	0.1436	0.1312	9%	0.8759	0.3762	133%
Fully Diluted Shares (mn)	3,286	3,296	0%	3,288	3,287	0%

Note: Share of Profit is included in other revenue.

For further information:

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 ateam 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.

 

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