Yoma Strategic reports fiscal 1H net loss narrowed

Myanmar kyat notes. Photo by Dan Gold on UnsplashMyanmar kyat notes. Photo by Dan Gold on Unsplash

Yoma Strategic reported Friday its net loss for the fiscal first half narrowed to US$18 million from US$21.6 million in the year-ago period as costs declined.

Revenue for the six months ended 31 March fell 16.6 percent on-year to US$36.6 million, the company said in a filing to SGX. That was mainly on the suspension of the Yoma Central project under Yoma Land Development and a decline in revenue from Yoma Motors, the filing said.

In addition, Yoma reported its other comprehensive income was US$8.07 million, swinging from a year-ago loss of US$13.79 million on a higher share of other joint ventures income.

Administrative expenses fell to US$17.4 million from US$24.3 million in the year-ago period as the company continued to reduce costs, the filing said.

Yoma Motors reported six-month revenue dropped 33 percent on-year to US$5.6 million as the heavy equipment business faced lower demand amid disruption to customer financing from local banks and the absence of government tenders. In addition, revenue in the automotive segment fell as import restrictions limited supply, Yoma said.

Yoma Financial Services posted revenue fell 26 percent on-year in the six month period to US$2.6 million as the fleet size shrank by 14 percent. The segment’s operating lease business faced early contract terminations as certain corporate customers exited Myanmar, the filing said.

Yoma Food & Beverage reported revenue 1 percent on-year in the six-month period to US$10.5 million, while the loss before tax narrowed to US$2.1 million from year-earlier loss before tax of US$6.7 million.

The segment’s restaurant business closed 22 stores in the period compared with a year earlier, but revenue has recovered due to fewer operational disruptions and successful marketing campaigns, Yoma said.

Outlook

Yoma was cautiously upbeat in its outlook.

“The group’s businesses continue to recover amidst a difficult operating environment. Residential property sales in our flagship estates – StarCity and Pun Hlaing Estate – grew by 14 percent compared to same period last year; Wave Money’s digital transaction volumes continue to grow each month and have reached a high; and KFC has started to see comparative same store sales growth vs. 2020 (pre-COVID),” Melvyn Pun, Yoma’s CEO, said in the statement. “Whilst we are also seeing attractive opportunities for growth, the group will continue to prudently manage its liquidity position and control costs.”

Yoma noted Myanmar has recently reopened to international travel in a bid to bolster tourism and engage international businesses.

But it noted the Central Bank of Myanmar has implemented new foreign exchange directives recently related to converting foreign currency into kyat.

“The group is assessing the impact of these directives and will continue to manage its currency exposure proactively in view of the general shortage of USD in the market,” Yoma said.

Yoma declared no dividend for the six-month period, unchanged on-year.