The CEO of Minor International Public Company Limited (MINT) Group Mr. Dilip Rajakaria said it is moving forward to drive operating results in 2024 to continue growth from 2023. The profit trend is expected to continue fresh. Operating profit grew to a new high of 7.7 billion baht from last year, following a recovery in the tourism and restaurant business. After people return to their normal lives once the COVID-19 situation is resolved.
The outlook for 2024, MINT still emphasizes, is to increase the level of consumer spending (spending) per capita to simultaneously increase revenue generation and profitability. The number of returning tourists is increasing. Thailand's tourism industry is expected to see activity this year, with tourist arrivals estimated at more than 35 million, up from 20 million last year, and Europe is likely to see an increase in tourists. MINT's emphasis is on getting tourists to spend more in both hotels and restaurants. To increase the efficiency of the business in the group
Hotel business trends continue to grow in 2024. This can be seen from room revenue on January 24, including bookings in February and March. 67 in Thailand is up 39% from last year, which is due to Thailand's tourist season. Meanwhile, hotel room revenue in Europe increased by 20%, supported by the Chinese New Year festival, as the weather in Europe was not too cold at the beginning of the year and is now warmer. Boost tourism It is expected to continue to see high growth during the high season summer in Europe.
The strategy of the hotel business includes repositioning and rebranding MINT, which has a high proportion of asset light, especially hotels in Europe that will raise their brands to a higher level. Another 28. -30 hotels, an investment of approximately 50-60 million euros, which will be a contributing factor to significantly increase the average daily room rate of hotels. And this will be a factor supporting the ratio of asset lighting to increase to 40% in 3 years as per targets. 18% from present
However, MINT has set its total investment budget at 1-13 billion baht for 2024, which will mainly be used for the hotel business. Especially expanding and improving hotels. Hotels in Europe in particular will rise in numbers, while the restaurant business will continue to expand. Especially overseas, Sizzler, The Coffee Club, Pizza Company in Vietnam and Singapore
Including expanding new Dairy Queen branches in Indonesia, growing 10 times in 3 years from the current 12 branches and bringing the GAGA brand into Indonesia. Support the growth of the restaurant business in ASEAN countries and develop the Swensens brand into a new, modern concept. Both the Dairy Queen and Swensens brands performed well in the restaurant segment.
In addition, we are looking for opportunities in new markets in India with high population and potential for growth.
MINT has set a target to invest 30 billion baht over a 3-year period (2024-2026), increase revenue by an average of 8-10% per year, and increase profits by an average of 15-20% per year. Return on Investment (ROI). Revenue ratio of hotel business: 90% comes from hotels abroad and 10% from hotels in Thailand. Ready to increase the number of restaurants from the current 2,600 branches to 3,700 branches. The turnover rate for restaurants is 60% in Thailand and 40% overseas. The lifestyle business has been restructured into a hotel business. Consequently, commercial proportions cannot be separated.
The company also plans to reduce its net debt to earnings before interest expenses. Income tax depreciation and amortization (net debt to EBITDA) to 4.3 times within 3 years from current 6 times. The company continues to make progress in reducing debt to reduce interest costs. Help support the company's profitability. By the end of 2024, the debt-to-equity ratio (D/E) will drop to 0.8 times from 1 in 2023, reducing debt from 100 billion baht to 90 billion baht. Some properties were sold and leased back. This will reduce debt. and support increased margins
The operational efficiency trend in 1st quarter of 2024 still has good momentum. We expect operating results for the second quarter of 2024 to be on a good pace as the hotel and restaurant businesses hit the targets set by the company as it is summer in Thailand. And there are important festivals especially before Songkran enters the low season to support the hotel business. As for the restaurant business, strong sales may continue from the end of 2023, where the company is still running various campaigns. This allows restaurants in the MINT network to generate better returns and profits to continuously generate excitement in the market.
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