SINGAPORE (May 30): Yoma Strategic Holdings reported an 85.5% fall in 4Q18 earnings to $3.5 million, compared to $24.08 million a year ago.
This came on the back of a 48.2% drop in revenue to $25.1 million, impacted by reduced income generated from the sale of residences and land development rights (LDRs), which fell the most in the company's breakdown of revenue.
The fall in real estate sales was mainly due to the group changing its sales strategy for StarCity, following its recent buyback of the development, and by continuing its sales strategy of only launching and selling near-completed units in Pun Hlaing Estate, also in Myanmar.
The group is declaring a final cash dividend of 0.25 cents per share.
For FY18, earnings slipped 25.7% to $26.64 million on the back of a 6.6% fall in revenue to $107.75 million.
"Moving ahead, we will continue to accelerate the group's growth by scaling up our key business pillars and establishing a nationwide presence across Myanmar," says Yoma’s executive chairman Serge Pun.
In a separate filing, Yoma has signed a joint venture with Little Sheep, the international hot pot brand, to open its first restaurant in Yangon this year.
Little Sheep is famous for its aromatic broth made from an assortment of 37 herbs and spices including goji berries, jujubes, black cardamom pods and ginseng as well as the quality and freshness of the ingredients it uses.
Established in Inner Mongolia in 1999, Little Sheep now has close to 300 restaurants across 120 regions and cities including outlets in Shanghai, Hong Kong, Tokyo, New York, Toronto, Melbourne and Ulan Bator.
Yangon’s first Little Sheep restaurant is scheduled to open during the fourth quarter, with plans to expand to other major cities in Myanmar thereafter.
With higher disposable incomes, Myanmar’s fast-growing consumer market has seen a shift in consumer spending habits away from the servicing of basic needs and towards lifestyle products. By 2020 it is estimated the number of consumers at or above the middle-class salary bracket in Myanmar will reach 10 million.
Shares in Yoma closed 1 cent lower at 44 cents on Monday.
