Minor International (MINT) Q1 2025 earnings summary

Executive summary

• Achieved a significant turnaround in Q1 2025, posting a THB 50 million core net profit versus a core loss in Q1 last year, marking the first-ever first-quarter core profit since the 2018 integration and overcoming typical seasonal losses in European hotels.

• Transformation initiatives, post-merger synergies, and strategic geographic expansion in Europe, Americas, UAE, Egypt, India, and Japan drove profitability, with Europe posting its first Q1 profit since the NH Hotel Group acquisition.

• Strong RevPAR growth across key markets: Europe & Americas up 8% (EUR), Thailand up 10% (THB), Maldives up 18% (USD) year-on-year.

• Minor Food saw 22% year-on-year growth in diner and digital sales, with a 5-6% increase in core net profit and margin expansion to 8%.

• Revenue grew 3% year-on-year at constant FX, with Minor Hotels contributing 78% and Minor Food 22%.

Financial highlights

• Q1 2025 core revenue was THB 36,738 million, down 2% year-on-year due to FX, but up 3% at constant FX; reported revenue was THB 37,596 million, down 1% year-on-year.

• Core EBITDA margin rose to 22.8%, up 60 basis points year-on-year; core EBITDA was THB 8,382 million, stable year-on-year.

• Net profit reached THB 50 million, a 114% year-on-year improvement; reported net profit (including core items) was THB 417 million, down due to prior year one-time gains.

• Hotel net profit improved by 39% year-on-year, with net margin improving from -3.3% to -2.1%.

• Interest expenses declined by 16% year-on-year, reflecting lower debt and improved funding terms.

Outlook and guidance

• Targeting 1,000 hotels and 4,500 restaurants by 2029, with 80%-90% of new hotels under asset-light management contracts.

• Financial targets include high single-digit revenue CAGR, 15%-20% CAGR in core profit over three years, and ROIC above 12%.

• Net debt to equity tracking toward 0.75x, aiming for below 0.7x; net debt to EBITDA expected to decline from 4.5x to 4.0x by 2025.

• CapEx trimmed to THB 7 billion over three years, prioritizing debt repayment and high-return projects.

• Maintains cautiously optimistic outlook for hotel and restaurant operations, with positive RevPAR growth in April across key markets.