SMI Vantage reported Friday its fiscal first half net loss narrowed to US$1.10 million from a net loss of US$2.94 million in the year-ago period, in part due to the revaluation of loans denominated in Myanmar kyat as the currency weakened against the U.S. dollar.
Revenue for the six months ended 30 September dropped 61.5 percent on-year to US$204,000, the company said in a filing to SGX.
“The group’s primary source of revenue, travel retail was not able to generate any meaningful revenue as the Yangon International Airport (YIA) remain closed for the first half of the financial year. This closure was mandated by government regulations,” SMI Vantage said in the statement.
“The domestic retail stores were also heavily impacted by the frequent closure and/or limited operating hours and F&B operations were similarly impacted and additionally, by the prohibition of dine-in during most of this period,” the company added.
Exchange differences on translating foreign operations, net of tax, posted a gain of US$1.18 million, compared with a loss of S$356,000 in the year-ago period, due to the revaluation of loans denominated in Myanmar kyat as the currency weakened against the U.S. dollar. the filing said.
The travel and fashion retail segment posted a loss of US$164,000 for the period, compared with a loss of US$1.64 million in the year-ago period.
The food and beverage segment reported a loss of US$95,000, compared with a loss of US$527,000 in the year-ago period.
SMI Vantage noted it has been aggressively cutting costs since the Covid-19 pandemic began.
“As travel retail sales represents approximately 70 percent of the group’s revenue, the company has taken a prudent view as to when the reopening may occur and has put in place strong cost reduction measures including reduced salaries, unpaid leave provisions, and has embarked on extensive rent reduction and rent mitigation with its landlords,” the company said.
Cost of sales fell to US$147,000 in the period, from US$341,000 in the year-ago period, SMI Vantage said.
Noting that the pandemic is likely to have a “great impact” on the business for the rest of the year, SMI Vantage said it has been looking at new businesses in the software-as-a-service (SaaS) field.
Earlier this year, SMI Vantage said it signed a deal with Nasdaq-listed The9 to move into cryptocurrency mining.
In October, Singapore Myanmar Investco changed its name to SMI Vantage.