SINGAPORE (May 29): Yoma Strategic reported 4Q19 earnings surged to US$25.7 million ($35.5 million) from $0.4 million a year ago.
See: Myanmar-focused Yoma Strategic eyes non-property revenue to spur growth
The 4Q financials bring FY19 earnings to US$34.1 million, nearly treble from the earnings of $11.9 million a year ago.
The stronger bottomline in both instances were mainly due to net fair value gains from its investment properties, which was partially offset by an increase in financing costs due to the higher amount of borrowings and the rising interest rate environment.
Revenue increased by 33.4% to US$100.7 million for FY19 and 77.9% to US$31.8 million for 4Q19. The increase was driven by a modest recovery in Yoma Land’s development activities, as well as the increase in its portfolio of investment properties, and continued growth at Yoma F&B and Yoma Financial Services, which helped to partially offset a slower performance by Yoma Motors.
4Q19 revenue from Yoma Land fell 21.8% to US$3.2 million primarily driven by the progressive revenue recognition from sold units at StarCity Galaxy Tower 2 and Tower 4 and Yoma Central. As at 31 March 2019, the Group has sold 15 out of 30 units launched with another 3 being reserved at The Peninsula Residence Yangon.
4Q19 revenue from Real Estate Services surged nearly sevenfold to US$17.1 million due to the reclassification of Pun Hlaing Golf and Country Club as an investment property and the recognition of certain fair value gains.
4Q19 revenue from F&B increased by 51.9%% to US$4.5 million mainly due to higher sales from KFC and the additional revenue from one of Myanmar’s largest restaurant chains, Yankin Kyay Oh Group of Companies (YKKO) following the completion of the acquisition in March.
4Q19 revenue of Yoma Motors, which was mainly contributed by the heavy equipment business, recorded a 27.9% decline to US$4.9 million largely due to a lower number of tractor and implements sold in the New Holland tractor business.
4Q19 revenue generated from the Financial Services business was exclusively from Yoma Fleet, the group’s vehicle leasing business, which grew by 47.2% year-on-year to US$1.8 million.
For FY19, revenue rose 33.4% to US$100.7 million from a year ago.
Yoma’s chief executive officer Melvyn Pun says the group “remains optimistic” about the business outlook and long-term prospects of Yangon’s real estate market.
It anticipates the market will be driven by an increase in foreign direct investment and positive responses to the pro-business reforms being implemented by the government.
Shares in Yoma closed at 33 cents on Monday.
