Minor International Plc (MINT), a SET-listed food and hospitality company, expects second-half revenue growth of 10% to 20.9 billion baht thanks to positive economic sentiment after the end of the political turmoil.
Chaiyapat Paitoon, the company's vice-president for strategic planning, said investor confidence and business sentiment would clearly bounce back the rest of the year, and people would spend more money.
Its first-half revenue grew by 10% year-on-year to 19.8 billion baht despite the political turmoil. The company's financial performance in the second half is projected to exceed the first half.
The company forecasts people's purchasing power may slightly increase in the third quarter and will clearly recover in the last three months.
Mr Chaiyapat is confident if the interim government can successfully form in the next couple of months and implement the economic policy set forth by the National Council for Peace and Order, the Thai economy will improve markedly in the fourth quarter.
Minor achieved second-quarter revenue of 9.12 billion baht, up by 11% year-on-year, for a net profit of 617 million, up by 44%.
The rise was driven mainly by the strong performance of hospitality and fast-food restaurants as well as a gain from the value adjustment of its investment in Serendib Hotels Plc in Mozambique.
For the six-month period, net profit rose by 10.9% year-on-year to 2.03 billion baht.
Mr Chaiyapat said the strong financial results demonstrate the success of business diversification, particularly international food and hotel expansion.
The healthy performance from international operations mitigated the impact of falling tourist arrivals and weak domestic consumption in Thailand in the second quarter.
Minor's net profit from its hotel business skyrocketed 134% in the second quarter and 18% in the first half thanks to the strong performance of hotels abroad and hotels upcountry, which offset the declining performance of properties in Bangkok during the protests.
Excluding the one-time gain from its value adjustment of investment in Serendib, the company's quarterly net profit rose by 28% year-on-year.
Minor reported that revenue per available room (RevPar) for all hotels rose by 9% in the first half. Excluding hotels in Bangkok, RevPar rose by 17%.
For its restaurant business, the company said net profit increased by 23% in the second quarter and 4% in the first half. Total quarterly sales grew 12%. Fashion and lifestyle product trading grew by 5% in the second quarter and 4% in the first half.
MINT shares closed yesterday on the SET at 32 baht, down one baht, in trade worth 311 million baht.