MINT Drops 4.5% after Reporting a Net Loss of ฿1.7Bn in 1Q20 due to Impact of COVID-19!

The share price of Minor International Public Company Limited (MINT) has dropped ฿0.80/share or 4.42% to ฿17.30/share after reporting a net loss of 1.7 billion baht in the first quarter of 2020 due to the impact of the coronavirus outbreak.

 

Last Friday after trading hours, MINT reported a net loss of 1,773 million baht in the first quarter of 2020, compared to a net profit of 583 million baht in 1Q19.

The company reported 1Q20 core revenue of 22,421 million baht, decreased by 22% YoY. This was attributable to adverse impact from COVID-19 outbreak on all three business units, most notably the challenging environment of Minor Hotels globally and Minor Food in China.

The EBITDA declined at a faster rate than revenue as the decline in revenue from the impact of the pandemic was severe and sudden while costs did not fall as fast, resulting in compounding effect from negative flow-through.

Particularly, the majority of EBITDA net loss was from NH Hotel Group which structurally has high fixed leases, and therefore lower profitability than MINT in general while Minor Hotels still recorded positive EBITDA. Including the impact of TFRS 16, with forgone rental expenses, core EBITDA was 2,982million baht in 1Q20, falling by 30% YoY from 1Q19 level.

 

In the first quarter of 2020, NH Hotel Group SA, MINT’s subsidiary, reported its 1Q20 earnings with a total net loss of 57 million euro mainly due to the plummet in March after temporarily closing business to contain the coronavirus outbreak.