Yoma Strategic returns to profitability to hit US$216,000 net profit for H2

MAINBOARD-LISTED Yoma Strategic Holdings Z59 : Z59 0%posted a net profit US$216,000 for the second half ending Sep 30,2021, reversing from a loss of US$44.6 million a year ago.

This comes despite significantly lower revenue as the group recorded other gains (compared to other losses) and a lower share of losses of associated companies, said the Myanmar-based group in a bourse filing on Monday (Nov 29).

Yoma Strategic has businesses in real estate, food and beverage, automotive, financial services, as well as investments.

Loss per share declined to US$0.00004 for the six-month period ended Sept 30, 2021, compared with loss per share of US$0.0201 a year ago.

Revenue for H2 2021 shrunk 18 per cent to US$43.4 million, from US$51.2 million previously.

Revenue generated from the land development segment which accounts for 36 per cent of revenue decreased to US$15.61 million in H2 2021 as compared to US$18.57 million in H2 2020.

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The group also saw its revenue dip for its other segments except for land services and investments.

In H2 2021, the group saw lower losses of associated companies of US$0.82 million as compared to US$6.71 million previously.

This improvement was mainly due to the share of profits in Memories Group which recorded large currency translation gains on its borrowings and lower impairment losses. This increase was however offset in part by a lower share of profits from Wave Money and a share of losses in the group's new real estate joint venture for City Loft West, which recorded currency translation losses on its USD borrowings.

For the full year ended Sep 30, 2021, the group saw its net loss continue to sink into the red with US$19.7 million recorded, continuing from the US$60.5 million loss recorded a year ago.

This comes after periods of "extraordinary disruption" where extended holidays were announced after the Myanmar New Year in April. There was also a third wave of Covid-19 during July and August that "severely impacted" Myanmar along with continued uncertainty in the operating environment, the group said.

In its outlook, the group said it expects Wave Money to "grow substantially" and noted continued positive momentum and strong performance in its real estate business. It remains in discussion with Telenor, whom it agreed to acquire a 51 per cent stake in Wave Money from, regarding the company's future strategy and structure.

It also notes a "strong recovery" in its restaurant business, and expects increased profitability from the segment despite a lower revenue contribution going forward.

While it has partially reinstated its chief executive and chief financial officer's salaries, which were voluntarily waived over the past 6 months, its executive chairman continues to waive his salary.

No dividend was recommended for the year ended Sept 2021.

Shares of the Yoma Strategic closed down 1.48 per cent or S$0.002 at S$0.133 on Friday (Nov 26).

Read more: 

• Yoma Q3 revenue up 2.1%; flags 'severe impact' on business from third Covid-19 wave in Myanmar
• Long-stop date for Yoma Strategic, Ant Financial JV in Myanmar not extended