Minor International yester¬day revealed a Bt5billion expansion plan for this year, expecting a solid performance with sales growth at 12-15 per cent, driven by retail and residential businesses.
"Of the total investment, Bt2 bil¬lion will be in the hotel business and Bt1 billion each for expansion of food outlets and residential property," chief finance officer Pratana Mongkolkul said at a meeting with analysts at the Stock Exchange of Thailand yesterday.
She said there was no need to issue more debentures this year as the company had already secured Bt4 billion in loans and issued Bt2 billion debentures.
She said the company was prepared to seek approval at its share¬holders' meeting for warrant issuance in April. If the shareholders exercise their right to convert the warrants to common shares, the company expects to receive Bt4 bil¬lion in cash.
Meanwhile, Prapharat Tangkawattana, a senior finance director of Minor International, said the company expected netprofit growth this year would be higher than sales growth, which was esti¬mated to grow at 1215 per cent.
She said this was because the company's key food business had managed lower costs while the resi¬dential business earned income for the full year.
Last year, Minor International posted Bt17.29 billion in sales revenue and Bt1.4 billion in net profit.
Prapharat said the company's main revenue this year would come from the food and hotel businesses, which have seen significant recovery. The food business is considered the key driver, representing 4550 per cent of total sales. Though samestore sales of food last year were weak, the netprofit margin was high.
In addition, income from the res¬idential business this year was expected at Bt800 million to Bt1 bil¬lion, mainly from two new projects - The Estates Samui and St Regis.
"We are in talks to buy more brands in the food and hotel busi¬nesses. The deals could be conclud¬ed in the second or third quarter this year," she said.
"The company will mainly focus on the rate of return," she said.
The company also expects to man¬age three or four more hotels by the end of this year, making a total of 34 hotels under its management.
Currently, Minor International's hotel business manages 30 hotels under the Anantara, Four Seasons, Marriott and Naladhu brand names. The hotel business contributes 3035 per cent of total revenue.
The other three main businesses - food, retail and residential - contribute 4550 per cent.
The food business includes The Pizza Company, the Coffee Club and Thai Express.
Minor International's stock yes¬terday closed at Bt10.09, unchanged from the previous trading day.
