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Yoma Strategic reports US$60.5 mil loss in FY2020 due to fair value losses

Felicia Tan
Felicia Tan • 4 min read
Yoma Strategic reports US$60.5 mil loss in FY2020 due to fair value losses
This was due mainly to net other losses of US$11.6 million compared to gains of US$9.0 million in FY2019.
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For the FY2020 ended September, Yoma Strategic has reported a net loss of US$60.5 million ($80.9 million), sinking deeper into the red from its US$36.8 million net loss in FY2019.

This was due mainly to net other losses of US$11.6 million compared to gains of US$9.0 million in FY2019. The losses included a fair value loss of US$12.1 million on the group’s investment properties in Myanmar, which were affected by the depreciation of the US dollar (USD) against the Myanmar kyat (MMK) during the period.

The fair value and impairment losses were offset by a gain on disposal of US$3.6 million in relation to the group’s investment in edotco and a fair value gain of US$1.4 million on the Group’s investment in a private equity fund.

During the FY2020, Yoma Strategic also reported higher share of losses of joint ventures of US$1.8 million compared to US$0.9 million in FY2019, mainly due to the higher losses recorded at Yoma Micro Power and BYMA.

In the 2HFY2020, Yoma Strategic saw slight improvement with a net loss of US$44.6 million, 22.4% up from its previous loss of US$57.5 million in 2HFY2019.

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This translates to basic and diluted loss per share of 2.01 US cents for the period, compared to the loss per share of 3.06 US cents in 2HFY2019.

During the 2HFY2020, revenue grew 25.3% y-o-y to US$51.2 million due mainly to the increase in revenue generated by the real estate development and automotive and heavy equipment segments.

Revenue for the group’s real estate development segment more than doubled to US$18.6 million in 2HFY2020 from US$8.5 million during the same period last year. This was primarily attributable to the higher sale of units from City Loft at StarCity. As at Sept 30, 646 units were sold compared to the 382 units sold in Sept 30, 2019.

The group’s automotive and heavy equipment segment saw slight growth in its FY2020 revenue of US$23.8 million compared to the US$20.7 million reported in FY2019. This was due to the higher number of higher value tractors sold during the period and high sales of Volkswagen vehicles and Ducati motorbikes during the period.

Financial services revenue, which was generated by Yoma Fleet, stood slightly higher at US$3.8 million compared to US$3.4 million in 2HFY2019.

Gross profit margin for the 2HFY2020 stood at 32.3%, down five percentage points compared to 37.3% in 2HFY2019. The decrease was mainly due to the lower consumer revenue, which usually generates higher gross profit margins compared to other segments.


See:Acquisition of Wave Money a positive for Yoma Strategic Holdings, say analysts

For the 2HFY2020, the group recorded other losses of US$16.5 million compared to other losses of US$23.6 million in 2HFY2019, mainly due to the fair value losses related to its properties in Myanmar. These were offset by other gains such as interest income and currency translation differences.

The group also reported share of losses of joint ventures of US$1.2 million in 2HFY2020 compared to share of profit of US$0.2 million in 2HFY2019. This was due mainly to the higher losses in BYMA where construction works at Yoma Central were impacted by Covid-19.

As at Sept 30, cash and cash equivalents stood at US$35.4 million.

Looking ahead, the group says it is “cautiously optimistic” on the outlook for Myanmar’s economy as the government is expected to focus on various growth initiatives and attracting foreign investments during its next five-year term.

“Furthermore, the impact of the Covid-19 response is expected to provide the catalyst for a more rapid pace of economic transformation, which bodes well for the group's businesses,” it says in a statement released via SGX.

The board and the group’s senior management says they have voluntarily extended the 25% reduction in directors’ fees and salaries for another six months amid the uncertainties arising from the Covid-19 pandemic.

No dividend has been recommended for the period in light of the uncertain operating environment due to Covid-19.

As at 3.36pm, shares in Yoma Strategic are trading 2 cents lower or 6.6% down at 28.5 cents.

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