MINT is confident that it will still be able to make profits grow to new highs in 2024, from 2023 with operating profit making a new high (new high) at 7,700 million baht. This year, he is ready to invest again. 10,000-13,000 million baht, mainly in the hotel business As for the food business, there are still plans to expand further abroad.
By Mr. Dilip Rajakaria, Group CEO, Minor International Public Company Limited (MINT). He revealed that this year’s profit will continue to make new highs from last year when operating profit grew to a new high of 7,700 million baht due to the recovery factor of tourism and the restaurant business. After people return to their normal lives once the COVID-19 situation is resolved.
Mr. said Dilip with excitement that “It gives me great pleasure to report on our excellent performance for 2023. This report reflects the hard work and dedication of all our teams across 63 countries. Moving forward, we remain focused on expanding the empire Promoting sustainable growth and reducing debt to create value for the company’s stakeholders in the long term.”
In 2024, the investment budget was set. 10,000-13,000 million baht
MINT has set its total investment budget for 2024 at 10,000-13,000 million baht, which will be mainly used for the hotel business. It expands and improves the hotel. Especially hotels in Europe which will increase in large numbers.
The restaurant business continues to expand. Especially abroad, the brands Sizzler, The Coffee Club, The Pizza Company in Vietnam and Singapore
Focus on increasing customer spend per head.
An overview of 2024, what MINT is still emphasizing is to increase spending per head of customers (Expenditure) in order to increase the ability to generate income and make a profit. By making tourists spend more in hotels and restaurants. Increase the potential of the business in the group
Tourism will see a boost in Thailand where the number of tourists is estimated at more than 35 million, from over 20 million last year, and tourists in Europe are likely to increase.
Revenue from rooms in Thailand February-March, 39% higher than last year.
Hotel business trends in 2024 continue to grow. This can be seen from room revenue in January ’24, including advance room bookings in February and March. 67 in Thailand is 39% higher than last year, coming from the tourist season in Thailand. and received support from the Chinese New Year festival
Meanwhile, hotel room revenue in Europe increased by 20% as the weather in Europe was not so cold at the start of the year and is now warmer. Making tourism vibrant It is expected to continue to see higher growth during the Summer, which is the busiest season in Europe.
Hotel business with Repositioning and Rebranding strategy
For the hotel business Focus on using Repositioning and Rebranding strategies according to the plan to make MINT get a bigger share of Asset light.
Especially hotel brands in Europe will be raised to a higher level. In 2023, 50 hotels had already been relocated and rebranded, and in 2024 there will be another 28-30 hotels, with an investment of around 50 -60 million euros.
This will help support the hotel’s average daily room rate to increase significantly. And it will be a factor that supports the share of the Asset light to increase to 40% in 3 years according to the target. from currently at 18%
In the next 3 years, increase cash flow. Not just profit
The aim of MINT’s next three years is not only to increase the profit margin. But it will significantly increase cash flow from operations. The cash will be used in a debt reduction plan.
The aim is to reduce net debt to earnings before interest expenses. Income tax depreciation and amortization (Net Debt to EBITDA) to 4.3 times within 3 years from the current 6 times.
The company continues to reduce debt in order to reduce interest costs. Help support the company’s profits By the end of 2024, the debt-to-equity ratio (D/E) will decrease to 0.8 times from 1 time in 2023, which will reduce debt to 90 billion baht from 100 billion baht, by including Some assets were sold and leased back. This will reduce debt. and support more profit
In the next 3 years, set a budget of 30,000 million baht, with annual income growth of 8-10%.
MINT sets a 3-year goal (year 2024-2026) to invest 30,000 million baht, with an expected average revenue growth of 8-10% per year and an average profit increase of 15-20% per year, with a need to create a return on investment ( ROI) Not less than 10%
Over the next three years, MINT aims to expand its business portfolio by adding 200 – 500 new hotels and 1,000 restaurant branches, bringing the total number of hotels to 780 and restaurants to 3,700. This commitment is supported Given the many growth opportunities and strategic focus on using the Asset light model business model, hotel management contracting. and restaurant franchising For sustainable growth while using as little investment as possible. and focus on high growth markets over other markets.
MINT has reaffirmed its commitment to expand its business to the global stage. Especially in important international locations such as
Add three hotels managed in Paris under the NH and NH Collection; the launch of the Anantara luxury hotel in Vienna and the launch of the NH Collection in Helsinki
In addition, MINT’s strong hotel expansion plans include the launch of Anantara and Avani in the Kingdom of Saudi Arabia. Along with opening new hotels in the Middle East market where MINT is already growing. There are also plans to launch several managed hotels in China to attract domestic and international tourists.
Minor Food is also strengthening its presence in ASEAN by opening franchise restaurants in Vietnam and Singapore under Sizzler, The Coffee Club and The Pizza Company. In addition, MINT has acquired Queen’s dairy business to operate in Indonesia and launched The Pizza Company , Swensen’s and Gaga.
With all the plans mentioned above, you will be able to play a role in expanding your business into high growth markets. especially the market within the ASEAN group
Plan to open Dairy Queen branches in Indonesia, increasing 10 times in 3 years.
Including the expansion of new Dairy Queen branches in Indonesia, increasing 10 times in 3 years from the existing 12 branches, including bringing the GAGA brand to open in Indonesia. Support the growth of the restaurant business in the ASEAN region and enhance the Swensens brand in a new, more modern concept. Both Dairy Queen and Swensens brands performed best in the restaurant category.
Prepare to open market opportunities in India
In addition, we are looking for opportunities in new markets in India that have a large population and potential for growth.
The Q1/67 business trend continues as targeted
The trend of operating results in the 1st quarter of 2024 still has good momentum. The hotel and restaurant businesses can achieve the goals that the company has set.
For the 2nd quarter of 2024, it is still expected that there will be good momentum also because it is summer in Thailand. and there are important holidays Especially Songkran Support the hotel’s business before entering the low season
As for the restaurant business, it was able to continue generating strong sales from the end of ’23, when the company continued to do various campaigns. Create continuous excitement in the market This allows restaurants in the MINT network to have better income and profit.
#MINT #believes #profits #continue #reach #highs #investing #million #baht #budget
