BANGKOK, 11 August 2021: Dusit Thailand Public Company Limited reported its 2Q21 results this week, recording a net loss of THB376 million, but it represented a 17% improvement when compared with 2Q20 results.
The hotel group reported revenue of THB 587 million, a year-over-year (YoY) increase of THB 163 million (or 38.4%), while the first-half revenue for 2021 was THB1,898 million, up 15.3% YoY.
Dusit Group CEO Suphajee Suthumpun said that the YoY improvements in revenue and loss during the second quarter and first half of 2021 reflect the company’s stringent cost-control measures, asset restructuring, growth of its international school catering business, and revenue generated by hotels.
“In 2Q20, the majority of our properties were temporarily closed in line with international measures to prevent the spread of Covid-19,” said Suthumpun. “While our core business continues to be heavily impacted by the global pandemic this year, we have still been able to operate our hotels in various domestic markets…Our bottom line has also benefited from the gain of sales of investment in an associated company, strategic asset restructuring, the expansion of our international school catering business in Vietnam, and a disciplined focus on cost containment overall. Our efforts allowed for a 17.9% YoY cost saving in 2Q21 and helped to reduce the loss expected in the turbulent business environment.”
In the first half of 2021, the group expanded its hotel footprint in Guam, USA, by signing to manage a new property under its White Label concept. Dusit now operates three hotels in the renowned island destination.
In July 2021, DUSIT expanded its food business by opening a new KAUAI flagship store at Asoke Towers in the heart of Bangkok. It is the sixth KAUAI branch in Bangkok and the first in the city to operate outside of a Virgin Active Fitness Centre. All outlets specialise in offering nutritious and healthy meals made using the finest ingredients available.
Looking forward, Suthumpun said: “The third wave of COVID-19 in Thailand is likely to continue impacting our business throughout 3Q21 and beyond… we will also move ahead with our asset restructuring strategy to strengthen our balance sheet and liquidity position. Most significant will be the sale and manage-back of Dusit Princess Chiang Mai hotel, which will be recognised in the financial statements of the third quarter of this year.
“Our focus on fixed-cost containment and liquidity preservation can also be seen in the successful issuance of new senior unsecured debentures worth THB 1,000 million, announced in July 2021. The proceeds from the new debentures will be used to refinance existing debentures due in September 2021.”