Yoma Strategic reported on Wednesday a fiscal third quarter net loss of S$5.2 million, swinging from a year-earlier net profit of S$18.8 million amid higher expenses to support growth of its new businesses.
Revenue for the quarter ended 31 December rose 12.1 percent on-year to S$27.0 million, it said in a filing to SGX before the market open on Wednesday.
“The increase was mainly driven by the turnaround in Yoma Land and the healthy performances of Yoma F&B and Yoma Financial Services, which helped offset a slower performance in Yoma Motors,” Yoma said in the statement. “However, the improved operational performance was offset by the administrative and higher finance expenses incurred to support the group’s new business growth.”
Finance expenses rose to S$7.01 million in the quarter, up from S$759,000 in the year-ago period, it said.
Melvyn Pun, the company’s CEO, pointed to the issuance of US$70 million of five-year bonds in the Thai market as helping to strengthen the company’s balance sheet.
“Our F&B platform continues to grow with the expansion of KFC and now the addition of YKKO, and we expect both brands to drive revenue and positively contribute to the earnings of Yoma F&B,” he said.
Yoma F&B posted a loss for core operating EBITDA (earnings before interest, tax, depreciation and amortization) of S$304,000, wider than a loss of S$264,000 in the year-ago quarter, due to pre-opening expenses for its first Little Sheep Hot Pot Restaurant and Auntie Anne’s locations, which will open in Yangon in coming weeks.
Revenue for the segment grew 18.6 percent on-year to S$4.59 million, coming exclusively from the KFC business, it said, adding that it opened another seven KFC outlets in the quarter, bringing its total to 33 at end-December, with 11 of them outside on Yangon, Yoma said.
Yoma Motors posted lower revenue of S$9.14 million for the quarter, down from S$12.13 million in the year-ago period, while its core operating EBITDA loss widened to S$1.02 million from a S$766,000 loss in the year-ago quarter, it said.
But it added that the business, which is mainly the New Holland tractors business, started to pick up from the fiscal second quarter as the monsoon season ended and it was able to fulfill deliveries to farmers.
For the nine-month period, net profit increased 45.5 percent on-year to S$15.9 million, while revenue increased 18.4 percent on-year to S$98.2 million, Yoma said.