BC Reports Strong Turnaround in 2024: Profit Soars 117% to THB 226 Million, Declares Dividend of THB 0.052 Per Share Positive Outlook for 2025: Tourism Rebound and Gains from Summer Point Token Sale Expected in Q1

Boutique Corporation Public Company Limited (BC) has announced a remarkable financial turnaround for 2024, reporting a net profit of THB 32.2 million, a sharp recovery from a loss of THB 194 million in the previous year. The company's robust performance is driven by its Build-Operate-Sale (BOS) business model and a strong rebound in the tourism sector. BC recorded total revenue of THB 632.3 million, marking a 58.59% year-over-year increase, supported by profits from the sale of investments in Cove Hill and ibis Chiang Mai Nimman Journeyhub, along with effective cost management. The company's EBITDA surged to THB 217.5 million.

Strategic Growth and Dividend Announcement

BC's Board of Directors has approved a dividend payout of THB 0.052 per share, scheduled for distribution in May 2025. The company is also set to launch a new hotel, Journeyhub Bangkok Sukhumvit 26, in Q1 2025, further enhancing its revenue streams.

In addition, the Summer Point Token, a digital investment token backed by BC's prime mixed-use office building, Summer Point, located in central Sukhumvit (adjacent to BTS Phra Khanong), has received regulatory approval from the Securities and Exchange Commission (SEC). The subscription period for the token runs from February 24 to March 14, 2025, with profits from the sale expected to be recorded by March.

CEO's Statement on 2024 Performance and Future Growth

Mr. Prab Thakral, CEO of BC, expressed confidence in the company's strategic execution, noting that BC's net profit attributable to the company improved by THB 226 million, a 1179% turnaround from the previous year's loss. The company's EBITDA reached THB 217.5 million, compared to a loss of THB 24.1 million in the prior year. This significant improvement is attributed to the successful execution of the BOS model, which included the planned divestment of Cove Hill and ibis Chiang Mai Nimman Journeyhub.

The resurgence of Thailand's tourism sector also played a crucial role in BC's growth, with tourist arrivals nearing pre-pandemic levels. This revival has positively impacted BC's hotel operations, retail centers, and office leasing businesses, strengthening its financial foundation.

Revenue Growth and Expansion Strategy

In 2024, BC's total revenue reached THB 632.3 million, reflecting a THB 233.5 million (58.59%) increase from the previous year. The primary drivers of this growth include realized gains of THB 159.8 million from the sale of two investment projects, coupled with improved operational performance aligned with BC's strategic roadmap. Additionally, the company successfully launched Cove Hill, a lifestyle retail mall in the heart of Charoenkrung, in Q4 2024, achieving a combined pre-leasing and occupancy rate of 74%.

BC has also implemented a more efficient cost control strategy, resulting in a 29% reduction in operating expenses compared to the prior year. The company's Clustering Strategy for hotel management has enhanced resource sharing and operational efficiency.

Currently, BC operates a portfolio of nine hotels and serviced apartments, including Citadines 8, Citadines 11, Citadines 16, Oakwood Residence Sukhumvit 24, and Jono Asoke in Bangkok; Journeyhub Phuket, Journeyhub Pattaya Central, Novotel Chiang Mai Nimman Journeyhub, and ibis Chiang Mai Nimman Journeyhub in key tourist destinations. BC also manages external projects in Phuket and Karon under its in-house brand, JonoX, earning revenue from hotel management and operational services.

Looking Ahead to 2025

BC is poised for continued expansion in 2025 with the launch of Journeyhub Bangkok Sukhumvit 26 in Q1. The Summer Point mixed-use project, strategically located in a prime business district in Sukhumvit, has achieved a 96.19% occupancy rate and is currently raising funds through the Summer Point Token ICO. The project is expected to deliver an annualized internal rate of return (IRR) of 10.2%. With SEC approval secured, the token will be available for subscription from February 24 to March 14, 2025, with profits from the sale expected to be recorded in March.

"BC is committed to expanding its business through new projects while maintaining our focus on growth under the BOS model. We currently manage nine operational projects and have five more under development in key tourist destinations across Bangkok and provincial areas. Given the booming tourism industry, strategic asset sales, and successful ICO fundraising, we expect to maintain our profitability in 2025. Our revenue growth target for the year is set at a minimum of 20% year-over-year. Additionally, we plan to expand our Jono, JonoX, and Journeyhub brands to third-party hotels beyond the BC portfolio," added Mr. Thakral

Dividend Declaration and Shareholder Benefits

BC's Board of Directors has approved a dividend payout of THB 0.052 per share, totaling THB 30 million, representing a 59% dividend yield and a 65% dividend payout ratio based on the company's standalone net profit. The record date for shareholders is set for March 20, 2025, with dividend distribution scheduled for May 27, 2025. This decision underscores BC's commitment to delivering long-term value to its shareholders. The dividend proposal is subject to approval at the Annual General Meeting on April 28, 2025.