Yoma Strategic has reported a net loss of US$21.6 million ($28.8 million) for the 1HFY2021 ended March, 21.7% more than the net loss of US$17.8 million in the 1HFY2020.
The lower figures were due to the impact of Covid-19 and the “uncertain operating environment” in Myanmar due to the coup that began in February 2021.
As a result, the group reported basic loss per share of 0.90 US cents during the half-year period.
Revenue fell 15.8% y-o-y to US$43.9 million due to the lower revenue generated by the consumer and automotive and heavy equipment segments, offset partly by the higher revenue from Yoma’s real estate development segment.
Revenue was higher for Yoma’s real estate development segment due to the sales of a penthouse unit at The Peninsula Residences, Star Villas units, as well as additional units at both existing and new projects at Pun Hlaing Estate during the half-year period.
Revenue from the group’s automotive and heavy equipment segment fell due to lower revenue from New Holland tractors and JCB construction equipment, Volkswagen vehicles and Ducati motorbikes.
Revenue from the financial services segment stood relatively flat during the 1HFY2021.
The group’s consumer segment saw significantly lower revenue due to the lower number of operating stores, shorter operating hours, disrupted trade zones and precautionary safety measures adopted by the group.
Gross profit fell 12.7 % y-o-y to US$14.4 million, while
gross profit margin (GPM) improved 1.2 percentage points to 32.8% due to the sales of higher margin products at Pun Hlaing Estate and StarCity.
Other gains fell 41.4% y-o-y to US$2.8 million due to the absence of the gain on disposal of the group’s investment in the telecommunications towers business in November 2019.
Share of losses of joint ventures deepened 33.5% y-o-y to US$757,000, due to higher losses in Yoma Micropower.
Share of profits of associated companies increased 60.3% y-o-y to US$2.0 million due to the lower share of losses recorded by Memories Group and Seagram Myanmar.
No dividend has been declared for the period.
As at end-March, cash and cash equivalents stood at US$36.5 million.
Looking ahead, the group says it expects its businesses to be impacted in varying degrees for the foreseeable future.
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Construction works for sold units are expected to continue at StarCity for City Loft and Star Villas and at Pun Hlaing Estate, albeit at a slower overall construction pace.
Residential leasing is expected to remain active and will be augmented by an increase in commercial leasing activities after October 2021.
The Yoma Central project is expected to be suspended temporarily in the near- to medium-term alongside other large-scale construction projects.
Wave Money remains impacted on the back of the slower economic activities but the resumption of the app on mobile 4G networks is expected to help in terms of the recovery of transaction volumes and monthly active users.
Collections for Yoma Fleet are expected to remain challenging with the “increased risk of delinquencies”. Yoma Fleet does not expect growth in its assets under management (AUM) in the near- to medium-term.
The group’s restaurants business is expected to be affected by consumer spending disruptions. Yoma says it will look to close up to a third of its restaurants temporarily or permanently if they can no longer be operated profitably.
Sales of motor vehicles and heavy equipment are expected to remain slow.
In addition, the group says it has implemented “stringent” financial management measures including a reduction in non-staff operating costs, the cessation or suspension of most capital expenditures and a reduction in staff costs by more than 60% through a cut to its workforce, unpaid leave and additional pay reductions.
Shares in Yoma closed 0.2 cent lower or 1.4% down at 13.9 cents on May 14.
