Yoma Strategic has reported a deeper net loss of US$12.5 million ($16.7 million) for the 1HFY2025 ended Sept 30, compared to the net loss of US$1.3 million in the same period the year before. The group’s loss before tax of US$10.3 million, from a profit before tax of US$2.1 million in the 1HFY2024 was mainly due to US$7.3 million of currency translation losses on Thai baht (THB) and US dollar (USD) borrowings.
During the period, total revenue fell by 14.7% y-o-y to US$95.2 million due to the depreciation of the Myanmar kyat (MMK), which fell by over 55% y-o-y. In MMK terms, revenue rose by over 35% y-o-y.
Revenue across Yoma’s businesses fell on a y-o-y basis in USD terms.
Yoma Land Development saw revenue increasing by 10.4% y-o-y to US$52.9 million even though revenue surged by 81.2% y-o-y in MMK terms. Revenue at StarCity’s project was generated mainly from Estella, which was launched in October 2023. As at Sept 30, 669 out of 690 units launched were sold. With an estimated average incremental percentage of completion of 38.9% achieved in the 1HFY2025, the revenue recognised for these Estella units came up to US$36.6 million.
Yoma also recognised revenue of US$5.9 million on three City Loft buildings with an estimated incremental percentage of completion of 32.4%.
Revenue for Yoma Land Services, which fell by 19.4% y-o-y to US$3.7 million, is made up of mainly leasing revenue from Yoma’s investment properties in Myanmar, estate operations income generated from StarCity and Pun Hlaing Estate (PHE) as well as and operator fee income as the operator of Pun Hlaing Golf and Country Club. Revenue rose in MMK terms from higher estate operations income resulting from a larger resident population in StarCity and higher utility charges. This was offset partly by lower operator fees income as depreciation expenses rose at Pun Hlaing Golf and Country Club due to the reclassification of certain facilities from investment properties to property, plant and equipment.
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Revenue from Yoma Motors fell by 48.4% y-o-y to US$3.2 million from the depreciation of the MMK as well as lower demand seen in agriculture tractors and implements from flood-related crop losses and limited financing options.
Leasing revenue generated by Yoma Fleet fell by 36.7% y-o-y to US$2.5 million mainly due to the depreciation in MMK. Revenue remained stable in MMK terms. Third-party assets under management (AUM) stood at US$34.6 million as at Sept 30.
Revenue for Wave Money under mobile financial services fell by 47.2% y-o-y to US$15.4 million mainly due to the impact of the depreciation in MMK. However, revenue in MMK terms also fell by 16.2% y-o-y mainly due to lower over-the-counter activities from physical cash shortages faced by the broader market and operational disruptions particularly in certain outlying regions of Myanmar. This was partly mitigated by higher digital activities driven by improved user quality, better use cases, higher transaction numbers and greater liquidity in the digital ecosystem.
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Under Yoma food and beverage (F&B), revenue fell by 8.7% y-o-y to US$15.2 million even though revenue rose by 44.8% y-o-y in MMK terms. During the period, revenue generated by KFC and YKKO grew from strong consumer demand, several successful marketing campaigns, a larger operating platform and additional fees from the expansion of the YKKO franchise. The group adds that consumer spending grew despite multiple pricing revisions at both KFC and YKKO to counter inflationary cost pressures and the significant depreciation of the MMK.
Investments fell by 28.5% y-o-y to US$2.4 million.
Other gains rose by 42.8% y-o-y to US$7.7 million.
Core ebitda fell by 20.7% y-o-y to US$14.9 million mainly from the depreciation of the MMK.
As at Sept 30, cash and cash equivalents stood at US$19.4 million, down from US$57.7 million in the same period the year before.
Shares in Yoma closed 0.1 cent lower or 1.28% down at 7.7 cents on Nov 12.
