Minor International (MINT) Q3 2024 earnings summary

Executive summary

• Achieved 16% year-on-year core net profit growth in Q3 2024 and 19% for the nine months, with core revenue up 5% in Q3 and 9% for nine months, driven by strong hotel and restaurant performance and global expansion.

• Expanded global footprint with 24 new hotel properties and several new restaurant concepts across Europe, Asia, Middle East, Africa, and Australia.

• Enhanced asset-light strategy, including new managed hotels in South Africa, Sri Lanka, Maldives, and India, and expanded restaurant operations in Indonesia and China.

• Received Moody's credit rating upgrade to Ba3 and maintained "AA" MSCI ESG rating; increased dividend payout to THB 0.57 per share.

• Robust cash flow supported dividend payout and ongoing debt reduction.

Financial highlights

• Q3 2024 core revenue reached THB 42,028m (+5% y-y); core EBITDA THB 12,036m (+9% y-y); core net profit THB 2,636m (+16% y-y); core EBITDA margin improved to 28.6%.

• 9M24 core revenue THB 124,277m (+9% y-y); core EBITDA THB 33,623m (+11% y-y); core net profit THB 5,514m (+19% y-y).

• Reported net profit declined due to non-cash FX derivative losses, with Q3 reported net profit at THB 149m (-93% y-y), expected to reverse in Q4.

• Core net profit margin at 6.3% in Q3; gross profit margin for 9M24 at 43.8%.

• Return on equity (core) at 8.3%; return on assets at 2.1%.

Outlook and guidance

• Expect continued high single-digit revenue growth in Q4 2024, with strong bookings in Europe and Asia.

• Targeting net debt to equity ratio of 0.8 by year-end, supported by asset sales and operational cash flow.

• Planning to launch one of Asia's largest REITs within 12-18 months to further reduce leverage and FX volatility.

• By 2026, aim to operate over 780 hotels and 3,700 restaurants globally.

• CAPEX to return to THB 8-11bn annually (2024-2026), focused on hotel upgrades and expansion.