Minor International Public Company Limited (“MINT”) today announced its financial results for the first quarter of 2020. Amidst the
unprecedented and highly challenging COVID-19 pandemic, MINT reported a net loss of Baht 1,774 million in 1Q20, compared to
a net profit of Baht 583 million in 1Q19. With the lockdown of many cities and countries across the globe, global tourism slowed dramatically in March 2020 and many hotels, restaurants and retail outlets were required to temporarily close, directly impacting all three of MINT’s businesses. The majority of MINT’s losses in 1Q20 were attributable to NH Hotel Group, with the first quarter being impacted due to low season and also the lease-based nature of its business.
MINT’s immediate priority has been to protect cash flow and preserve liquidity. The company continues to safeguard its cash
position, with approximately Baht 22 billion of cash on hand and unutilized credit facilities of further Baht 27 billion as at the end of
April 2020, together with additional credit facility of EUR 250 million in May, in order to ensure sufficient liquidity going forward.
Meanwhile, MINT has implemented measures to reduce its cash outflows, including limiting and where possible curtailing operating
costs, delay of capital expenditures and new investments across all business units and all geographies. Cost reduction initiatives
have been implemented and are ongoing the areas of payroll, rent or lease payments and other operating costs.
Nevertheless, even in this difficult time, Minor Food’s China hub has shown an encouraging quick recovery post-COVID-19. China
was the first country to be hit by the pandemic and most of the China hub’s outlets were closed in February. Since the reopening of
its outlets in March, the China hub’s sales have improved week-on-week, tracking ahead of MINT’s internal projections. In April, the
China hub has returned to generating positive store net profit, two months ahead of original forecasts. At its current pace, Minor
Food could return to pre-crisis sales level by June, a quick and robust recovery. In addition, MINT’s two China hotels and five
Vietnam hotels have all reopened successfully.
MINT is actively preparing to resume full operation in a “new normal” world. Hotels will reopen on a case-by-case basis, taking into
consideration relaxation of various countries’ lockdowns and business demand levels. Our brands have partnered with industry
leaders to anticipate and implement best-in-class hygiene and health standards; i.e. Anantara’s “Stay with Peace of Mind” and NH
Hotel Group’s “Feel Safe at NH”. Minor Food’s dine-in restaurants, to the extent they will have projected positive cash flow, are
expected to resume full operation in the near future. When they re-open, they will strictly adhere to strong safety and hygiene
protocols, including social-distancing, restaurant cleaning and deep cleaning and “Zero Touch Delivery” initiative, among others.
Minor Food’s extensive network of 3,000+ delivery drivers have been extremely busy delivering food orders from The Pizza
Company, Burger King, Bonchon and Minor Food’s other brands. Notably, Bonchon, a recent acquisition, has seen its popularity
spike during the COVID-19 pandemic.
As the COVID-19 pandemic eases, positive signs of recovery are visible, MINT is confident that it will emerge from this period a
stronger company. The global hotel, food and retail industries will change in response to the lessons learned from the pandemic
and MINT will play a leading role in shaping and leading them. Its strong brand portfolio, agility and passionate leadership and team
serve as the foundations that will guide MINT through the pandemic and propel it to success for many years to come.