SINGAPORE (July 26): Yoma Strategic Holdings, the corporation with a diversified portfolio of businesses in in Myanmar, reported a 54% rise in 1Q18 earnings ended June of $2.8 million from $1.8 million a year ago.
Revenue rose 46.8% to $25.8 million from $17.6 million. Revenue from the group’s Automotive & Heavy Equipment and Consumer businesses increased by 54.5% to $15 million, contributing 58.2% to the group’s 1Q18 revenue. Gross profit margins improved to 40.6% in 1Q18 from 38.8% in 1Q17, mainly due to the higher margins achieved for the Real Estate business.
The Real Estate business generated from the sale of residences and land development rights doubled year-on-year to $6.2 million from $3.1 million, mainly due to the share of profits from the sales of residences in Galaxy Towers (StarCity Zone C) and the additional share of profits in StarCity Zone B following its completion. Real Estate rental and services revenue decreased by 7.9% to $4.6 million mainly due to the reduction in the number of tenants in FMI Centre in anticipation of its demolition to make way for the development of the group’s Yoma Central project.
Revenue generated from the group’s Automotive & Heavy Equipment business grew by 61.3% year-on-year to $11.9 million in 1Q18. Demand for its New Holland tractors remained healthy, recording a 75.5% year-on-year jump in revenue to $9.8 million, while revenue from Yoma Fleet saw a 41.8% year-on-year increase to $1.7 million as the number of vehicles leased out increased.
In 1Q18, the group’s Consumer business’ revenue grew by 42.1% year-on-year to $3.1 million, primarily due to the expansion of its KFC business. As at end June, the group now has 13 KFC stores in operation, including the first KFC store in Mandalay, with plans to increase the store count to 22 nationwide by end March.
CEO Melvyn Pun says, “We are pleased to deliver healthy growth with improved gross profit margins across all of our core businesses. As the economy continues to grow, we will focus on strong execution to maintain our leadership position and to deliver high quality products and services for customers.”
Shares in Yoma closed 0.5 cent higher at 59 cents on Tuesday.
