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Yoma reverses from loss to US$216,000 in 2HFY21 despite Covid-19 disruptions

Felicia Tan
Felicia Tan11/29/2021 09:49 AM GMT+08  • 3 min read
Yoma reverses from loss to US$216,000 in 2HFY21 despite Covid-19 disruptions
No dividend has been declared for the FY2021.
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Yoma Strategic has reported earnings of US$216,000 ($296,080) for the 2HFY2021 ended September, reversing from the US$44.6 million loss registered in the 2HFY2020.

This comes despite the lower revenue of US$43.4 million in the 2HFY2021, which was 15.2% lower than revenue of US$51.2 million.

The lower revenue was mainly due to declines in the food and beverage (F&B) and Motors segment, which were partly mitigated by the slight increase in Yoma’s two real estate segments.

Gross profit stood 11.0% y-o-y lower at US$14.7 million.

The higher earnings were attributable to the group’s other gains, which stood at US$28.8 million in the 2HFY2021, reversing from the US$16.5 million loss in the same period before.

The higher figure for both the 2HFY2021 and FY2021 was mainly attributed to fair value gains on investment properties of US$41.4 million in the 2HFY2021 compared to fair value losses of US$12.1 million in the 2HFY2020.

See also: Second Chance set to report higher 1HFY2023 net profit

The valuation of the group’s properties are determined in USD, which had appreciated by over 40% against the Myanmar Kyat (MMK) as at Sept 30, making its fair value on investment properties higher in MMK terms.

The second half of the FY saw periods of “extraordinary disruption” in Myanmar with the announcement of extended holidays, as well as a “severe” third wave of Covid-19 in July and August.

Despite the Covid-19 pandemic, Yoma says its businesses in real estate, food and beverage (F&B) and Wave Money in particular, have begun to recover.

See also: SIA group wide load factor for Feb was 86.6%, down 0.3% over Jan

For the 2HFY2021, the group registered loss per share of 0.4 US cent.

For the FY2021, the group saw a net loss of US$19.7 million, easing from the net loss of US$60.5 million in the FY2020.

Revenue for the FY2021 stood 15.5% y-o-y lower at US$87.3 million, while other gains stood at US$31.2 million, reversing from the US$11.6 million loss in the FY2020.

Gross profit stood 11.9% lower y-o-y at US$29.1 million.

In the FY2021, Yoma registered a loss per share of 0.91 cent on a fully diluted basis.

As at Sept 30, cash and cash equivalents stood at US$26.9 million.

No dividend has been declared for the FY2021.

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Looking ahead, Yoma says it continues to see “positive momentum and strong performance” for its real estate businesses.

Construction activities at StarCity have continued over the past three months in spite of the surge in Covid-19 cases in the country.

As a result, most of the residual revenue recognition from the City Loft @ StarCity units and Star Villas that were previously sold, will be recognised in the coming two quarters.

As at Sept 30, Yoma’s unrecognised revenue in StarCity and Pun Hlaing Estate (PHE) amounted to over US$14 million.

Wave Money is also expected to grow as the digitalisation of the financial system is a key priority for the Central Bank of Myanmar.

According to the group, over-the-counter money transfers, digital transaction volumes and digital monthly active users for the e-wallet have recovered “substantially” since June. The trend is expected to continue with month-on-month growth.

As at 9.48am, shares in Yoma are trading flat at 13.3 cents.

Photo: Bloomberg

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