SET-listed Minor International (MINT) feels cautiously optimistic about its business prospects in the second half, expecting a recovery in many locations.
According to the company's statement, Europe, the biggest contributor to Minor Hotels, began to reopen in mid-May, in large part thanks to a strong vaccination programme.
Demand is increasing at European hotels, with a strong bookings outlook as it enters the summer high season. In addition, Australia operations will continue to be supported by robust domestic demand, while the Maldives' restrictions have already been relatively relaxed compared with other destinations.
"For Thailand, although the rest of the country is facing the third wave of the pandemic, the Phuket sandbox and Samui Plus models are paving the way for the reopening of the country to tourism. For Minor Food, solid consumption in China and Australia are expected to continue to drive business, while Thailand remains focused on delivery business for the time being amid the third wave of the pandemic," said the company.
In the long run, cost controls introduced during the pandemic have become embedded in the businesses, allowing the company to operate more cost-efficiently, said the company's statement.
Dillip Rajakarier, group chief executive of MINT, said during this long journey, the company took several steps to ensure the sustainability of the business, such as balance sheet management initiatives it announced to the market earlier.
With a strong balance sheet and liquidity, MINT can turn its full attention to seizing demand recovery, he said.
"We are cautiously optimistic, as we are fully aware there are still uncertainties in the global markets. Looking ahead, I am excited to be getting back to driving our business operations through this recovery phase, with a leaner, more focused business model to deliver stronger results to stakeholders," said Mr Rajakarier.
In a related development, MINT yesterday reported better overall performance, both on an annual and quarterly basis, in the second quarter.
MINT posted core revenue of 15.6 billion baht in the quarter, a rise of 133% from the same period last year. The improvement was driven by a recovery of hotel business in all regions, especially in Europe, and food operations in all major hubs, especially China and Australia. There was also a low base effect from the second quarter of 2020, as many hotels and restaurants were temporarily closed.
The bottom line was a loss of 3.92 billion baht in the second quarter, improving from a net loss of 8.44 billion year-on-year, according to a statement to the SET. For the first half, the company reported total revenue of 28.3 billion baht, down 3% year-on-year, with a net loss of 11.2 billion, worsening from a loss of 10.2 billion year-on-year.
