Minor International plans to expand its overseas business, to diversify risks following the severe political impact early this year.
Pratana Mongkolkul, chief financial officer, said that overseas business revenue should double to 40 per cent within the next 35 years. She highlighted the possibility of expanding into Africa, Australia, India and China due to their huge population.
Minor's policy is to grow revenue by 20 per cent every year, she said. Though it achieved the target in the past few years, it failed to do so last year.
This year, revenue growth rate of 8-12 per cent is expected, from Bt17.29 billion last year. Revenue from both food and hotel businesses is expected to grow continuously. In the third quarter, tourism business is recovering with full recovery expected in the fourth quarter.
The hotel occupancy rate still remains at a low level, at 50 per cent in July, from zero in May. Though food and retail businesses showed improvement, the thirdquarter net profit is expected to shrink from the same period last year. However, the annualised contraction in the third quarter would be less severe than 65 per cent in the second quarter, Pratana said.
Minor also expects to transfer six units of St Regis Residences Bangkok, to push up net profit this year.
This year's net profit is, however, expected to be the same as last year, at about Bt1.4 billion. And if the company can sell six units to the customers, the net profit will be better than last year, Pratana said.
St. Regis Residences Bangkok has a total of 53 units. Minor expects to sell six units this year and 12-20 units next year.
In the next 3-5 years, hotel management is also expected to generate revenue of Bt800 million, from Bt200 million to Bt300 million this year. At the same time, the company will be expanding its franchise businesses, especially the brand Dairy Queen, of which the number of outlets will be doubled to 500 within the next 3-5 years.
By the end of this year, the company is expected to buy two more food and hotel businesses, she added
Minor has plans to issue Bt5 billion debentures, but she said the issue date depends on the interest rate. She said Minor was capable of financing its expansion even without the bond issue, as it has credit lines of Bt20 billion.
The company plans to invest Bt6 billion this year, Bt3 billion next year and Bt1 billion in 2012.