Mandarin Oriental’s net profit up 1% to $134m in FY14

Thanks to robust underlying earnings growth.

Mandarin Oriental reported that its net profit climbed 1% to $133.95m (US$97m) in FY14, on back of a 4% growth in its underlying earnings to $300.1m (US$217.3m).

The group’s underlying profit also grew 4% to $133.9 m (US$97m), thanks to $9.7m (US$7m) profit recognized on acquisition of the freehold rights of the Paris hotel, while underlying earnings per share were US¢9.67 compared with US¢9.30 in 2013.

The group also announced its intention to raise $436m (US$316m) through a 1 for 4 rights issue of new ordinary shares. The proceeds of the rights issue will be used to pay down debt.

“While trading conditions in a number of markets are expected to remain challenging, the Group is in a strong competitive position. Over the longer term, Mandarin Oriental will benefit from the strength of its brand, the increasing number of travellers from emerging markets, particularly mainland China, the limited new supply of luxury hotels in its key mature markets, and the phased opening of new hotels and Residences under development.,” said Mandarin Oriental International Chairman Ben Keswick.