BANGKOK: Thai hotel and fast-food chain operator Minor International PCL has said that it planned to spend at least 50 billion baht ($1.54 billion) over the next five years to expand food and hotel businesses and on acquisitions.
Minor, which runs Burger King, Dairy Queen and The Pizza Company outlets across Asia, planned to invest about 30-32 billion baht on expanding its existing business, Chaiyapat Paitoon, vice president for strategic planning, told investors during a quarterly earnings presentation.
Another 20-22 billion baht would be set aside for acquisitions as the company planned to expand domestically as well as overseas, he said. The company planned to use cash flow and debt financing to fund expansion, he said, adding the company’s net debt to equity ratio was low at 0.96 percent at the end of 2014, providing room for expansion without raising funds via equity.
Minor, which competes with the likes of Yum Brands Inc and Central Plaza Hotel PCL, has been aggressive in acquisitions overseas to expand high-margin food and hotel businesses. It aims for average growth in net profit of 15-20 percent a year over the next five years, with average revenue growth of more then 10 percent, Chaiyapat said. Domestic operations made up of 65 percent of revenue last year, with the rest from foreign business. The company aims to boost the overseas proportion to 50 percent by 2019.
Domestic demand, which slowed after months of domestic political unrest, has gradually recovered since the fourth quarter of last year, Chaiyapat said. Minor, which operates four restaurant chains in Thailand, Singapore, Australia and China, planned to boost the number of domestic and foreign fast-food outlets to 3,300 by 2019 from 1,708, he said. The company also owns majority stakes in hotels run under the Four Seasons, Marriott, St. Regis and other brands, as well as other joint ventures and management contracts. It aims to raise the number of hotels to 190 by 2019 from 119 in 2014.
