Customs issues impact Singapore Myanmar Investco third quarter results

MYANMAR. Singapore Myanmar Investco Limited (SMI) has reported a 16.6% year-on-year decrease in revenue in the third quarter, to US$5.5 million.

The company, which manages duty free and food & beverage outlets at Yangon Airport’s international terminal, attributed the decline to reduced retail sales as a result of Myanmar Customs restricting some key duty free supplies.

This impacted October and November sell-in to the airport, SMI said. The company reported a strong recovery in December and said retail sales to airport travellers have continued to grow throughout the year.

SMI also operates in the Myanmar domestic fashion market as well as vehicle and limousine services under the Europcar franchise.

The company has an F&B division with franchise/license agreements to develop, manage and operate Crystal Jade, Ippudo and The Coffee Bean & Tea Leaf brands in Myanmar. SMI runs four F&B outlets covering about 1,000sq m at Yangon International under the Crystal Jade and Coffee Bean & Teal Leaf fascias, and two outlets at Junction City.

Revenue from SMI’s food & beverage business remained stable in the quarter, at US$0.4 million – the same figure recorded in the previous quarter.

Looking ahead, SMI noted that the World Bank and Asia Development Bank have confirmed that the domestic Myanmar economy is growing at around 6% this year. It said traveller numbers have continued to increase “in spite of some adverse publicity for the country”.

At Yangon International, SMI said the closure of the old international terminal (T2) at the end of July has boosted passenger traffic at the new international terminal (T1) by more than 60%, which is “benefiting retail at the airport travel retail stores”.

The company also noted the planned expansion of Coffee Bean and Tea Leaf, Ippudo Ramen and Crystal Jade Kitchen outlets in the domestic market, with three new openings scheduled. SMI is also planning to expand its Shiseido and Pandora concept stores.

Source: Moodie Davitt Report

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