Dusit International is set to bounce back in 2025, with the company projecting a revenue of 16 billion baht from its residential properties and reduced interest burdens.
The company is confident in its recovery, as it moves closer to turning a profit, despite challenges faced in previous years.
“Dusit International is on track for a strong turnaround,” said Suphajee Suthumpun, the group’s chief executive. “We expect to start recognising revenue from Dusit Residences and Dusit Parkside in the fourth quarter of this year, as 90% of the units are already sold.”
The residential components of the Dusit Central Park development are expected to contribute significantly to revenue, and the company aims to realise these figures once transfers begin.
“If there are no unexpected disruptions, we will start generating revenue from these residences this year,” Suphajee added.
Despite a solid total revenue of 11.2 billion baht last year and earnings before interest, taxes, depreciation, and amortisation (EBITDA) of 1.65 billion baht, Dusit International posted a loss of 237 million baht. The key factor behind this loss was a hefty interest payment of 578 million baht on a 6 billion baht loan at a 5.7% interest rate. Suphajee explained that the company had not requested additional capital during the pandemic but instead relied on perpetual debentures and short-term loans.
“Once we start receiving income from the residential transfers, we will be able to reduce interest expenses and improve our bottom line,” she said. This financial relief is expected to kick in this year, providing the company with more room for growth.
In addition to its real estate ventures, Dusit is looking to grow its revenue by 20-25% in 2025, with a target of 9 billion baht. A key part of this growth will come from the diversification of its revenue streams. The company has decreased the reliance on hotel revenue from 90% to 67%, while increasing revenue from its food and education segments to 18% and 5%, respectively.
Suphajee also highlighted that, despite a muted outlook for Thai tourism, the full-year operations of the new Dusit Thani Bangkok and 294 properties across 18 countries should help sustain hotel revenue growth of 20-25%.
On the subject of Dusit Foods, which faced a net loss of 20 million baht, Suphajee attributed the losses to investments in new partnerships aimed at boosting revenue. She assured that unprofitable food businesses had been cut to focus on more promising ventures, reported Bangkok Post.
As for the possibility of delisting Dusit Thani from the stock market, she is confident that it would be unlikely, as the company remains on track with its nine-year strategic roadmap.
The story Dusit International eyes 16 billion baht revenue boost this year as seen on Thaiger News.
