Yoma Q3 revenue up 2.1%; flags 'severe impact' on business from third Covid-19 wave in Myanmar

MAINBOARD-LISTED Yoma Strategic Holdings Z59 posted a 2.1 per cent on-year growth in revenue to US$19.6 million for the third quarter ended June 2021, from US$19.2 million a year ago, boosted by strength in property sales.

The Myanmar-based group, however, warned that new measures implemented amid the third Covid-19 wave in Myanmar will likely have a "severe impact" on the group, especially in its food and beverage (F&B) and motor segments, it said on Wednesday in its business update for the quarter.

In a bourse filing, Yoma Strategic said revenue from its property segment, Yoma Land, gained 30.9 per cent to US$8.9 million from US$6.8 million a year ago, boosted by construction activities at StarCity and new land sales at Pun Hlaing Estate.

Revenue from financial services, F&B and motor segments, however, contracted in the quarter.

Yoma Financial Services declined by 10.5 per cent to US$1.7 million from US$1.9 million a year ago, and it expects growth for vehicle rental service Yoma Fleet will be "curtailed in the near term until additional funding lines can be secured from banks".

Its fintech arm also saw overall revenue and transaction volumes affected by the broader slowdown in economic activity and the availability of cash in the over-the-counter business.

THE BUSINESS TIMES INSIGHTS

Powering Asean's Future 2026

Find out how enterprises are navigating power constraints and sustainability targets

ACCESS THE INSIGHTS

Yoma F&B fell 6.4 per cent on year to US$4.4 million, although it noted that there was strong month-on-month recovery after delivery services resumed on May 6.

Yoma Motors declined by 23.2 per cent to US$4.3 million from US$5.6 million a year ago. Its heavy equipment segment sold 86 tractors and five JCB machines, compared to 124 tractors and 11 JCB machines in Q3 2020, while its automotive segment was hit by closed registration offices and dealer showrooms during April, and limited credit processing from local banks.

The group also ceased operations of its Bridgestone tyres business, which it had a 30 per cent stake in, at the end of July as "the business can no longer operate competitively in the Myanmar market due to a price hike in Bridgestone tyres".

Shares of Yoma Strategic closed at 13.6 Singapore cents on Wednesday, up 0.1 cent or 0.7 per cent.

READ MORE

• Long-stop date for Yoma Strategic, Ant Financial JV in Myanmar not extended
• Yoma's services resume operations amid Myanmar unrest; revenue up 0.9% in Q1