Dusit Thani Public Company Limited reports 1Q21
Results with profit of THB 74 million driven by prudent financial management and diversification strategy
Bangkok – 18 May 2021: Dusit Thani Public Company Limited (DTC) has reported its Q1 2021 results, with total revenue of THB 1.311 billion, a 3.9% YoY increase from THB 1.262 billion, and net profit of THB 74 million, increase from the net loss of THB 82 million reported last year.
While DTC’s core business in Thailand was impacted in 1Q21 by the second wave of COVID-19, which began in late December 2020, the company’s prudent financial management and strategy for concentric diversification contributed to revenue recognition during this time.
Ms Suphajee Suthumpun, Group CEO, DTC, said that the company is making every effort to maintain positive business momentum while waiting for its core business to pick up following the rollout of vaccination programmes and gradual easing of travel restrictions worldwide.
“Achieving profitability in such a volatile, uncertain and complex business environment is a huge challenge for everyone in the hospitality industry, especially where borders remained closed to international travel,” said Ms Suthumpun. “Our favourable 1Q21 results mainly come from our resilient financial structure; the gain on sales of investment in an associated company under Dusit Central Park; and revenue generated by our diversified investments in food and property businesses. Since the COVID-19 outbreak began last year, we have continued to hone our financial, business, and organisational models to meet the demands of the situation and ensure we are ready to thrive in the post-pandemic world.”
For financial management, DTC has focused on prudent asset rationalisation and optimisation, as well as the implementation of stringent cost-containment measures to reduce expenditure and enhance financial resilience.
For its business model, the company has responded to the challenges facing its domestic hotel business by adjusting its operations to drive non-room revenue. This has included creating and promoting on-demand housekeeping, pop-up eateries, and food delivery services. Where possible, the company is also driving core hotel revenue by offering a ‘Work from Anywhere’ package, offering an attractive alternative to working from home.
Moreover, DTC has undergone organisational transformation by streamlining its processes to become leaner and more agile. The introduction of a cluster model, for example, has enabled greater sharing of organisational resources by allowing employees to perform multiple roles more effectively, saving costs and other expenses in the process.
“Our global expansion strategy also contributed to our favourable results in 1Q21, with Dusit Hotels and Resorts in destinations with widespread vaccination programmes in place – such as China, the Middle East, the USA, and the Maldives – performing satisfactorily,” said Ms Suthumpun. “While these are certainly positive signs, it must be noted that we foresee that our overall Q2 and Q3 performance will be heavily impacted by the third wave of COVID-19, which is currently sweeping through Thailand and bringing travel to a halt here.
“There is no doubt that a high vaccination rate is crucial to the recovery of the global tourism industry overall, and as we wait for these numbers to rise in Thailand, we will continue to maintain prudent liquidity management and ensure our personnel are ready to conduct business safely and effectively in these challenging times.”