Update on Minor International Pcl

RNS Number : 0308R

Symphony International Holdings Ltd

14 November 2012

 



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

14 November 2012

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 strong 2012 third quarter results ("3Q12"). MINT reported that core net profit (excluding non-recurring items) increased 69% year-over-year, which was driven by the strong performance of the hospitality and restaurant businesses.

MINT made an announcement on 12 November 2012, which is reproduced below.

MINOR INTERNATIONAL PCL
PRESS RELEASE - 12 November 2012	FOR IMMEDIATE RELEASE

MINT's 3Q12 CORE NET PROFIT UP 69% TO BAHT 585 MILLION

 Minor International ("MINT") reported net profit of Baht 585 million in 3Q12, an increase of 69% from core net profit (excluding non-recurring items) of Baht 345 million recorded in 3Q11, as a result of outstanding performance of both hospitality and restaurant businesses. For the first nine months ending September 2012, MINT's net profit rose by 54% to Baht 2,225 million from core net profit of Baht 1,447 million recorded in the same period of last year. The increase was attributable to improved performance of both hospitality and restaurant business, as well as the full consolidation of Oaks Hotels and Resorts in Australia after the acquisition in June 2011.

In 3Q12, net profit of MINT's hospitality business increased by 173%, driven by improved performance of hotel operations, including the Company-owned hotels and hotel management contracts, as well as stronger profitability of both residential sales and Anantara Vacation Club compared with that of 3Q11. In 9M12, MINT's hospitality business achieved a 72% increase in net profit. Strong tourist arrivals together with MINT's own efforts to strengthen sales of its hotel rooms to existing and new markets through various distribution channels, as well as a significant pick-up in performance of the two owned hotels opened in 2011, have helped propel overall occupancy to 69% in 9M12 from 63% in 9M11, boosting an increase in revenue per available room (RevPar) by 13% in 9M12. MINT also recognized the full first nine-month contribution from Oaks in 9M12 as opposed to four-month contribution in 9M11 upon completion of the acquisition.

In 3Q12, net profit of MINT's restaurant business increased by 23% from the same period of last year, driven primarily by 12.5% increase in system wide sales and contribution from the increased stake in profitable S&P Syndicate and Thai Express. In 9M12, MINT's restaurant business saw its net profit improve by 34% on the back of 16.4% increase in system wide sales due to a 5.8% increase in same store sales and the addition of 100 new outlets system wide. Robust domestic consumption, which drove both the number of customers and average revenue per customer of most brands, together with the Company's on-going marketing efforts continued to drive sales growth, while net profit margin continued to expand over the same period of last year.

In 3Q12, net profit of retail trading rose by 72% owing mainly to a flood insurance claim. Excluding insurance claim, core revenue of retail trading started to see an increase, while underlying profitability and margins were still under some pressure as a result of higher discounts to clear out the backlog inventory after 4Q11 flooding. In 9M12, net profit of retail trading business increased by 48% primarily because of a flood insurance claim also.

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 1,300 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 41 hotels and 39 serviced suites under the Anantara, Avani, Oaks, Elewana, Marriott, Four Seasons, St. Regis and Minor International brands in Thailand, Australia, New Zealand, the Maldives, Vietnam, Tanzania, Kenya, the Middle East, Sri Lanka, China 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, Pedro, Red Earth, Bloom, Tumi, Zwilling J.A. Henckels, ETL Learning and Thaisale. For more information, please visit www.minorinternational.com

Performance (Bt m)

	3Q12	3Q11	% Change	9M12	9M11	% Change
Total Revenues	7,842	6,976	12%	24,134	19,933	21%
Cost of Sales	3,065	2,648	16%	9,193	7,446	23%
Selling & Administrative	3,291	3,035	8%	9,898	8,616	15%
EBITDA	1,486	1,293	15%	5,042	3,871	30%
Depreciation & Amort.	548	540	1%	1,623	1,445	12%
EBIT	938	752	25%	3,419	2,426	41%
Interest Expenses	277	263	5%	824	605	36%
Earnings Before Tax	661	490	35%	2,595	1,821	42%
Corporate Tax	78	132	-41%	374	329	14%
Minority Interest	-2	12	-119%	-4	45	-108%
One time items
Add: Gain from fair value adjustment on investment in S&P	_	1,054	N/A	_	1,054	N/A
Less: One-time goodwill impairment for investment in China	_	-93	N/A	_	-93	N/A
Net Profit as Reported	585	1,306	-55%	2,225	2,408	-8%
Fully Diluted EPS as Reported (Bt)	0.1567	0.3607	-57%	0.6027	0.6657	-9%
Fully Diluted Shares (mn)	3,735	3,622	3%	3,691	3,618	2%
Net Profit from Operations (exc. One-time items)	585	345	69%	2,225	1,447	54%
Fully Diluted EPS from Operation (Bt)	0.1567	0.0954	64%	0.6027	0.4001	51%
Fully Diluted Shares (mn)	3,735	3,622	3%	3,691	3,618	2%

      Note: Share of Profit is included in other 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.

End of Announcement

 

END

 

 

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