YOMA Strategic posted a net loss of US$11 million for the first half ended September 2024, widening from its US$2.5 million loss in the previous corresponding period due to revenue declines as well as higher finance costs.
This translated to a loss per share (LPS) of US$0.0061 versus the prior year’s H1 LPS of US$0.0012.
Revenue fell 14.7 per cent on the year to US$95.2 million versus US$111.6 million, which the group attributed to a 55 per cent depreciation of the Myanmar kyat.
On Wednesday (Nov 13), the Myanmar-focused company said overall revenue nonetheless grew 35 per cent in kyat terms led by increased contributions from its land development, food and beverage (F&B) and land services segments.
Revenue in the land development space was higher in both kyat- and US dollar-terms on the back of construction progress at StarCity and City Loft West. The group said it is expecting US$110.7 million of unrecognised revenue for these two developments and Pun Hlaing Estate to be booked over the next 18 to 24 months.
In terms of kyat-denominated revenue, contributions from Yoma land services grew 35.2 per cent on higher estate operations income and leasing income, though revenue from mobile financial services declined as over-the-counter transaction volumes dipped year on year.
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The group said its leasing segment kyat-denominated revenue remained “broadly stable” although that of the motoring segment fell.
Revenue from the F&B segment notably grew 44.8 per cent in kyat terms, which the group attributed to strong consumer demand in its KFC and YKKO businesses.
Group finance costs spiked 125.9 per cent to US$18.8 million, more than doubling from US$8.3 million a year ago due to a US$18.8 million net currency loss on borrowings versus a US$8.3 million gain booked in the prior year.
Yoma attributed the higher finance costs to currency translation losses on US dollar-denominated loans to certain Myanmar subsidiaries, as well as the weakening of the US dollar against Thai baht that resulted in currency translation losses on its recent Thai baht bond issued in November 2023.
Noting economic headwinds and import restrictions that presented challenges to its business operations, the group nonetheless said business remains “active” in Myanmar’s major cities.
Yoma added that it remains committed to repaying its US dollar-denominated borrowings, and increasing its proportion of kyat-denominated borrowings to better align with its cash inflows.
The counter closed 1.3 per cent or S$0.001 lower at S$0.07 on Tuesday.
