Yoma reports 17.7% lower Q1 revenue but says profitability improved

MAINBOARD-LISTED Yoma Strategic Holdings Yoma Strategic : Z59 +6.08%, in a business update on Monday (Feb 14), reported group revenue of US$24.4 million for the Q1 ended Dec 31, 2021, down 17.7 per cent from its US$20.8 million in Q1 FY2020.

The group, however, said its core operating Ebitda (earnings before interest, taxes, depreciation and amortisation) and profitability grew year on year during the quarter, due to “stringent financial management measures implemented over the past 12 months and a heightened focus on profitability and cash flow”.

While Yoma believes consumer activity in Myanmar has begun to recover in certain operating areas, the group said it will remain cautious in its business planning for the foreseeable future and will focus on deleveraging its balance sheet and managing its costs.

Yoma’s lower Q1 top line came on broad-based declines across all of its core business segments, which the group attributed to a sharp drop in Myanmar’s GDP (gross domestic product) over the past year.

Its main revenue contributor Yoma Land posted a 3.6 per cent lower revenue year on year, dragged by lower revenue from the real estate development subsegment as a result of Yoma Central’s temporary suspension.

The group’s food and beverage segment posted 17.5 per cent lower revenue on the termination of certain contracts, as well as an overall decline in transportation and warehousing demand from lower economic activity. Yoma nonetheless highlighted a recovery in same-store-sales growth and core operating Ebitda for its KFC and YKKO brands.

Source: Singapore Business Times

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