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Symphony International Holdings Limited ('Symphony')
28 February 2020
Update on Minor International PCL
Symphony International Holdings Limited (LSE: SIHL) is pleased to announce that Minor International Pcl ('MINT'), Symphony's largest portfolio investment, released its fourth quarter ('4Q19') and full year results for the 2019 financial year. MINT reported a 53% and 23% increase in core net profit (excluding non-recurring items) in 4Q19 and full year 2019 year-over-year, respectively. The increase is attributable to MINT's full year consolidation of the NH Hotel Group, improved results from hotel operations and mixed-use activities and gains from asset rotation.
MINT's announcement on 27 February 2020 is reproduced below.
MINOR INTERNATIONAL PCL
PRESS RELEASE - 27 February 2020 FOR IMMEDIATE RELEASE
MINT'S 2019 NET PROFIT SURGES 137% TO BAHT 10.7 BILLION
Minor International Public Company Limited ('MINT') reported net profit of Baht 10,698 million for the year 2019, a 137% increase from Baht 4,508 million for 2018. This surge in net profit was attributable to MINT's full-year consolidation of NH Hotel Group, improved results from hotel operations and mixed-use activities and gains from asset rotation. For 4Q19, MINT reported net profit of Baht 3,768 million, a 569% increase from Baht 563 million in 4Q18. The strong year-on-year net profit growth was driven by mixed-use business and hotel operations, together with the gain on sale of the three hotels in the Maldives in 4Q19, undertaken as part of MINT's strategic asset rotation plan. Excluding all non-recurring items, MINT's core net profit grew 23% in 2019 and 53% in 4Q19.
In 4Q19, Minor Hotels reported core net profit Baht 2,619 million, a 66% increase from core net profit of Baht 1,580 million in 4Q18. This increase was driven by strong contributions from Minor Hotels' real estate business and hotel operations. Anantara Vacation Club continued its strong positive turn around momentum from the previous financial quarter, recording improved revenue and profit in 4Q19. Minor Hotels continued to build its strong hotel portfolio, adding a total of 27 hotels (3,582 rooms) during the course of 2019.
In 4Q19, Minor Food reported core net profit of Baht 258 million, a slight decline from Baht 273 million in 4Q18. Minor Food continued to invest in its digital capabilities to increase competitiveness and to address the soft market going forward. Thailand hub's increased engagement with third-party aggregators (as a complement to its own delivery platform), coupled with continuous new product launches, resulted in much improved same-store-sales trend. The Australia hub's exciting new product launches, together with a digital loyalty program and collaboration with Uber Eats, led to the same-store-sales growth turning positive in 4Q19. Improving operations during the quarter, together with the consolidation of Bonchon since mid-November, helped offset softer performance in other parts of the operations. As a result, Minor Food's performance is showing signs of recovery with a lower decline in its net profit in 4Q19 compared to other quarters in the year.
In addition to the strengthening operational performance, particularly of Minor Hotels, MINT continues to explore opportunities for strategic asset rotation. In 4Q19, it sold its joint venture interest in three hotels in the Maldives-Anantara Veli, Anantara Dhigu and Naladhu Private Island. The cash proceeds were used to repay existing debt, and the gain on sale of assets further solidified its equity base. As a result, MINT's leverage position continued to improve, with its debt-to-equity ratio falling to 1.3x as at end of 2019. The transaction improved MINT's balance sheet, while MINT continues to manage the properties under its brands and continue to generate ongoing management fees.
2020 began with uncertainty, particularly with regards to the COVID-19 situation, resulting in a slowdown in the global economy, and particularly in travel and tourism trends. MINT is closely monitoring the situation and has already taken steps to react quickly to market changes, including initiatives to drive revenue as well as implementation of strict cost controls. The COVID-19 situation is expected to be temporary, and MINT's balanced portfolio positions it well to capitalize on the eventual business rebound.
In the near term, realizing synergies continues to be a priority, whether with NH Hotel Group, Bonchon or BreadTalk in Singapore. MINT also continues to drive digital transformation, both at customer touchpoints and also in-house through the use of data analytics. As MINT continues to grow, it remains committed to maintaining its strong balance sheet position. As such, MINT is confident that it will emerge from this challenging period stronger and more successful, as it has done in the past. In terms of long-term growth, MINT focuses on reevaluating its portfolio of businesses to maximize returns and undertakes expansion, acquisitions, divestments, streamlining of its shareholdings and asset rotations as appropriate.
About Minor International: Minor International (MINT) is a global company focused on three core businesses: hospitality, restaurants and lifestyle brands distribution. MINT is a hotel owner, operator and investor with a portfolio of 535 hotels under the Anantara, AVANI, Oaks, Tivoli, NH Collection, NH Hotels, nhow, Elewana, Marriott, Four Seasons, St. Regis, Radisson Blu and Minor International brands in 57 countries across Asia Pacific, the Middle East, Africa, the Indian Ocean, Europe, South and North America. MINT is also one of Asia's largest restaurant companies with over 2,300 outlets system-wide in 26 countries under The Pizza Company, The Coffee Club, Riverside, Benihana, Thai Express, Bonchon, Swensen's, Sizzler, Dairy Queen and Burger King. MINT is one of Thailand's largest distributors of lifestyle brands and contract manufacturers. Its brands include Anello, Bodum, Bossini, Brooks Brothers, Charles & Keith, Esprit, Etam, Joseph Joseph, OVS, Radley, Scomadi, Zwilling J.A. Henckels and Minor Smart Kids. For more information, please visit www.minor.com.
For further information:
Chaiyapat Paitoon / Jutatip Adulbhan +662 365 7500
Minor International Pcl
Symphony Asia Holdings Pte. Ltd. +65 6536 6177
Anil Thadani
Rajgopal Rajkumar
Dealing codes
The ISIN number of the Ordinary Shares is VGG548121059, the SEDOL code is B231M63 and the TIDM is SIHL.
The LEI number of the Company is 254900MQE84GV5DS6F03.
About Symphony
Symphony International Holdings Limited (LSE:SIHL) is a London listed strategic investment company that invests in consumer related businesses, primarily in the healthcare, hospitality, lifestyle (including branded real estate developments), logistics and education sectors predominantly in Asia. It offers a way for investors to gain exposure to 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 form long-term business partnerships with talented entrepreneurs and management teams. Symphony's investment team has a broad range of expertise - many of its professionals have been working in Asia for more than 30 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.
The Company and the Investment Manager are not associated or affiliated with any other fund managers whose names include 'Symphony', including, without limitation, Symphony Financial Partners Co., Ltd.
End of Announcement
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Update on Minor International PCL - RNS
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Symphony International Holdings Ltd. published this content on 28 February 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 February 2020 07:02:04 UTC
