SINGAPORE (July 24): Yoma Strategic Holdings reported attributable net loss for 1Q20 ended June widened to US$13.3 million ($18.2 million) from a restated US$5.6 million a year ago due to lower sales from its property-linked businesses and higher expenses.
The restatement of 1Q19 results was due to a change in international financial reporting standards.
Yoma’s group revenue dipped 11.5% to US$18.6 million from a year ago.
Revenue generated from the sale of residences and land development rights (LDRs) in 1Q20 decreased by more than half to US$3.27 million from a year ago from lower percentage of completion revenues at Pun Hlaing Estate and StarCity as both projects are nearing completion. There was also minimal remaining inventory for sale at Galaxy Towers.
Real estate services revenue also fell 15% to US$2.30 million from a year ago due to lower leasing revenues from Star Residences at StarCity which started its refurbishment plan and reduced the number of units available for lease.
Revenue from the group’s automotive & heavy equipment segment decreased about 25% to US$4.2 million due to a lower number of tractors with higher margins sold.
Financial services revenue generated by Yoma Fleet, which is in the vehicle leasing and rental business, stood 28.6% higher at US$1.8 million.
The group also recorded higher revenue of US$6.76 million in its consumer segment mainly due to the sales growth at KFC from new store openings and same store sales growth of more than 1% and the US$2.99 million in revenue recognised from Yankin Kyay Oh Group of Companies (YKKO) following the completion of the acquisition in March.
On the other side of the equation, administrative expenses increased 12.4% to US$13.9 million while finance expenses rose 76.5% to US$9.6 million.
In addition, share of losses of associated companies came in 35% lower at US$1.32 million due to higher attributable share of profits from Digital Money Myanmar Co.
In its outlook statement, Yoma said the World Bank in June indicated that the country’s economy bottomed out in September 2018 and is now showing signs of accelerating growth supported by the pace of economic reforms, a gradual rebound in infrastructure spending and the liberalisation of certain sectors, such as retail, insurance and banking.
Shares in Yoma closed at 38 cents on Tuesday.
