SET-listed Dusit International has convinced its investors of a more positive outlook for this year, expecting to generate 16 billion baht in revenue from Dusit Residence transfers and reduced interest burdens.
Suphajee Suthumpun, group chief executive, said the pending issues regarding the appointment of four directors and the approval of the financial statements for 2024 should be revisited at the next board meeting.
Mrs Suphajee said the company is on track for a turnaround this year as transfers start to be recorded for 16 billion baht in revenue from the residential components of Dusit Central Park, comprising Dusit Residences and Dusit Parkside, which are roughly 90% sold.
"If there are no unexpected incidents that significantly disrupt our plan, we will start realising revenue from the residences in the fourth quarter this year," she said.
Despite generating total revenue of 11.2 billion baht and achieving earnings before interest, taxes, depreciation and amortisation of 1.65 billion baht, the company incurred a loss of 237 million baht last year.
The primary reason was 578 million baht in interest payments on a loan of 6 billion baht with a rate of 5.7%, which was used for investment, said Mrs Suphajee.
The company's registered capital is only 850 million baht, and it did not request an increase to fund Dusit Central Park during the pandemic. Instead Dusit turned to perpetual debentures and short-term loans from financial institutions.
She said once the company earns income from residence transfers and can repay those debts, the reduced interest expenses should improve the company's bottom line, probably starting this year.
Mrs Suphajee also insisted she is still trusted by major shareholders and the board to continue leading Dusit, which entered the final stage of its nine-year strategic roadmap (2016-2025).
She said the company still aims to grow its revenue to 9 billion baht this year, up 20-25% from 2024.
Using a diversification strategy, Dusit reduced the proportion of hotel revenue from 90% to 67%, while increasing revenue contributions from the food business to 18% and the education segment to 5%.
Even though the Thai tourism outlook this year is muted, the full-year operation of its new Dusit Thani Bangkok as well as 294 properties in 18 countries should help sustain the growth of hotel revenue at 20-25%, said Mrs Suphajee.
Regarding the net loss of 20 million baht for Dusit Foods, the holding company that owns several food businesses, she attributed it to investment with new partners to create more revenue.
Dusit Foods already cut some food businesses that did not make a profit, said Mrs Suphajee.
In terms of the possibility of the board of directors considering delisting Dusit Thani from the stock market in the future, she said she believes it would be unlikely.