Yoma Strategic's revenue up 3.2% for April-June quarter

MYANMAR-FOCUSED conglomerate Yoma Strategic Holdings on Tuesday reported that its group revenue rose by 3.2 per cent to US$19.2 million for the quarter ended June 30, 2020, from US$18.6 million a year ago.

The boost to the top line came largely from its real estate development business as well as the motors arm, according to the mainboard-listed firm's trading update released on Tuesday morning.

Revenue from Yoma Land grew 21.4 per cent on the year to US$6.8 million, helped by a 45.5 per cent increase in contribution from real estate development, which was mainly driven by its residential development City Loft @ StarCity in Yangon.

The City Loft project's first six buildings are now between 10.2 per cent and 73.8 per cent completed. Some 80 per cent of the 791 launched units have been sold or booked, and unrecognised revenue amounted to US$17 million as at June 30.

In contrast to the development business, Yoma Land's real estate services saw revenue tumble 13 per cent to US$2 million for the quarter, amid greater competition which depressed occupancy levels and rental rates at Pun Hlaing Estate and StarCity.

Yoma Motors' revenue was up 33.3 per cent to US$5.6 million. For its heavy equipment business, more tractors and implements were sold during the quarter as agriculture activity ramped up ahead of the monsoon season. In the automotive business, higher revenue was driven by the sale of 16 Volkswagen vehicles and 22 Ducati motorbikes.

Meanwhile, the food and beverage (F&B) segment posted a 30.9 per cent drop in revenue to US$4.7 million, as it was affected by government-imposed lockdowns, curfews and prohibitions on dining-in between April and mid-May in response to the coronavirus pandemic. There were also temporary store closures in "severely affected" trade zones.

Yoma F&B operates YKKO restaurants, KFC restaurants, Auntie Anne's kiosks and a Little Sheep Hot Pot restaurant.

Revenue from Yoma Financial Services rose by 5.6 per cent to US$1.9 million, thanks to an enlarged finance lease portfolio under Yoma Fleet as well as a higher number of monthly active users for Wave Money.

Shares of Yoma Strategic lost 0.5 Singapore cent or 1.7 per cent to close at 29 cents on Monday.

In February, the company announced a change in its financial year end from March 31 to Sept 30. Therefore, its next set of financial statements will cover a period of 18 months from April 1, 2019 to Sept 30, 2020.