Minor International (MINT) Q2 2024 earnings summary

Executive summary

• Achieved record core profit of THB 3.2 billion in Q2 2024, up 8% year-on-year, driven by strong hotel performance in Europe and the Americas and increased restaurant traffic in Thailand and Singapore.

• 1H24 core revenue rose 12% year-on-year to THB 82.2 billion, with core profit up 22% to THB 2.9 billion, supported by efficient operations and tax management.

• Opened 21 hotels in H1 2024, with 9 in Q2, focusing on asset-light, managed, and rebranded properties across Asia, Europe, and Africa.

• Minor Food maintained leadership in Thailand, expanded Dairy Queen in Indonesia, and launched innovative products and flagship stores.

• Global presence expanded to 64 countries, with 82% of 2Q24 revenue from hotels and 18% from food.

Financial highlights

• 2Q24 core revenue: THB 44.6 billion (+10% y-o-y); 1H24 core revenue: THB 82.2 billion (+12% y-o-y); 2Q24 core net profit: THB 3.2 billion (+8% y-o-y); 1H24 core profit: THB 2.9 billion (+22% y-o-y).

• Excluding FX impacts, core net profit grew over 30% year-on-year.

• 78% of revenue came from overseas operations, 22% from Thailand.

• Issued THB 8 billion in bonds, including THB 5 billion sustainability-linked bonds.

• EBITDA margin for 2Q24 was 29.7%.

Outlook and guidance

• Expect continued strong RevPAR and ADR growth in Europe and Thailand, with Q3 and Q4 trends exceeding original guidance.

• Targeting 8%-10% annual revenue growth and 15%-20% profit growth over the next three years, with ROIC above 10%.

• Plan to reach 780+ hotels and 3,700 food outlets by 2026, focusing on asset-light expansion and franchise models.

• Hotel expansion pipeline includes 43 hotels/6,279 rooms in 2024, with 91% under management or MLRs.

• Restaurant business to focus on new product launches, flagship store rollouts, and digital engagement to drive sales and market share.