3Q18 and 9M18 Performance
Minor International Public Company Limited (MINT) reported another quarter of robust revenue growth with 11% increase from the same period last year, and total revenue of Bt 15,889m in 3Q18. The growth was achieved across all business units despite challenges of economic slowdown and currency depreciations in some of MINT’s key operating markets, together with revenue contributions of Corbin & King (C&K) and NH Hotel Group. In 3Q18, MINT recorded additional dividend income from NH Hotel Group of Bt 84m, adjustment which was made to reflect the actual dividend received.
For 9M18, MINT’s revenue from existing operations increased by 8% y-y, driven by growth of all business units, together with revenue contribution of C&K. Including gain from fair value adjustment of Benihana investment in 2Q18 and total dividend received from investment in NH Hotel Group in 2Q18 and 3Q18, MINT reported total revenue of Bt 47,095m in 9M18, an increase of 9% compared to the same period last year.
With regards to the acquisition of NH Hotel Group, MINT began to record activities relating to the transaction since June 2018. However, there is a mismatch in the revenue and expenses recognition related to NH Hotel Group. The investment in NH Hotel Group was treated as available for sale investment in both 2Q18 and 3Q18, and therefore MINT only recognized the dividend income from NH Hotel Group, primarily in 2Q18. However, interest expenses related to such acquisition have been booked since June, with an increasing amount along with the increased investment amount in 3Q18. As such, for the purpose of analysis of MINT’s operations, contributions from NH Hotel Group, as detailed in the table on page 3, are excluded from the analysis in this MD&A, where applicable. Note that at the end of October, MINT has successfully completed the tender offer, which resulted in MINT’s shareholding of 94% in NH Hotel Group. Therefore, with the consolidation of NH Hotel Group’s financials in 4Q18, the full-year consolidated numbers in 2019 will better reflect the operational performance of MINT.
Revenue Breakdown
| Bt million | 3Q18 |
3Q17 |
%Chg |
Contribution |
| As Reported | ||||
| Restaurant Services | 5,836 | 5,693 | 3% | 37% |
| Hotel & Mixed-Use | 8,992 | 7,571 | 19% | 56% |
| Retail Trading & Contract Manufacturing | 1,062 | 1,037 | 2% | 7% |
Total Revenue |
15,889 | 14,300 | 11% | 100% |
| Operations* | ||||
| Restaurant Services | 5,836 | 5,693 | 3% | 37% |
| Hotel & Mixed-Use | 8,907 | 7,571 | 18% | 56% |
| Retail Trading & Contract Manufacturing | 1,062 | 1,037 | 2% | 7% |
Total Revenue |
15,805 | 14,300 | 11% | 100% |
* Exclude item related to investment in NH Hotel Group as detailed in the NH Hotel Group Contribution table on page 3
Revenue Breakdown
| Bt million | 9M18 |
9M17 |
%Chg |
Contribution |
| As Reported | ||||
| Restaurant Services | 17,848 | 17,530 | 2% | 38% |
| Hotel & Mixed-Use | 26,042 | 22,618 | 15% | 55% |
| Retail Trading & Contract Manufacturing | 3,205 | 2,918 | 10% | 7% |
Total Revenue |
47,095 | 43,066 | 9% | 100% |
| Operations* | ||||
| Restaurant Services | 17,728 | 17,530 | 1% | 38% |
| Hotel & Mixed-Use | 25,598 | 22,618 | 13% | 55% |
| Retail Trading & Contract Manufacturing | 3,205 | 2,918 | 10% | 7% |
Total Revenue |
46,531 | 43,066 | 8% | 100% |
* Exclude gain of Bt 121m from fair value adjustment on the investment in Benihana in 2Q18 and item related to investment in NH Hotel Group as detailed in the NH Hotel Group Contribution table on page 3
In 3Q18, MINT’s EBITDA from existing operations grew by 6% y-y, mainly supported by improved performance of organic hotel operations and mixed-use business, as well as favorable contribution of C&K. Nevertheless, EBITDA margin of existing operations declined from 20.4% in 3Q17 to 19.7% in 3Q18, primarily due to lower profitability of timeshare business, which was negatively affected by the appreciation of the Thai Baht against the US Dollar, as well as lower operating leverage of restaurant and retail trading businesses amidst challenging operating environment across their key markets.
For 9M18, MINT’s EBITDA from existing operations showed a y-y increase of 4%. The growth was led by performance of organic hotel operations and retail trading business, together with positive contribution of C&K. However, the timing mismatch of mixed-use revenues recognition, impact of foreign exchange translation on profitability of Anantara Vacation Club (AVC) and lower operating leverage of restaurant business put pressure on the overall EBITDA margin of existing operations. Consequently, EBITDA margin of existing operations decreased slightly from 20.5% in 9M17 to 19.8% in 9M18.