Myanmar-based conglomerate Yoma Strategic has reported a loss of US$11.3 million for its 2HFY2022 ended Sept 30, from earnings of US$5.96 million recorded in the year earlier. Revenue in the same period was down 5.68% y-o-y to US$40.9 million.
For the full year, losses nearly doubled to US$29.3 million, from US$15.7 million of red ink booked for Sept 30 2021.
Some of the losses suffered in 2HFY2022 was attributed to some US$4 million in impairment booked for the company’s property development projects.
Its F&B business, meanwhile, generated strong revenue growth of nearly 50% for 2HFY2022 – making this business segment the second largest revenue contributor within Yoma.
On the other hand, revenue dropped for other business segments such as financial services, motor leasing and property.
Yoma notes in its earnings commentary that the business environment has generally been more stable over the last six months, while some sectors in which it operates “have actually seen strong growth.”
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The country's military took over as the government back in Feb 2021, hurting business sentiment, especially among foreign investors.
Yoma says it is “cautiously optimistic” about its business prospects for the next 6-12 months and will continue to operate with a focus on maintaining sufficient liquidity whilst reducing overall leverage levels.
“Notwithstanding the strong trends seen in terms of customer demand and sales, inflationary pressures and volatility of the Myanmar Kyat have the potential to pose significant challenges to our financial performance.
Yoma “will continue to operate with a focus on cost discipline and generating positive operating cashflow with a high degree of responsiveness to the overall environment,” the company adds.
Yoma shares closed Nov 11 at 9 cents, up 8.43% for the day, but down 30.77% year to date.
