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Yoma Strategic sinks into the red with US$15.9m H2 2020 net loss

MYANMAR-FOCUSED Yoma Strategic Holdings has sunk into the red with a net loss of US$15.9 million for the six months ended March 31, 2020, compared with a net profit of US$20.6 million a year ago.

This comes amid an increase in interest expenses and administrative expenses, partially offset by a lower share of losses of joint ventures and the recognition of a share of profit of associated companies, according to results released by the mainboard-listed group on Thursday.

Yoma Strategic has businesses in real estate, food and beverage, automotive, financial services, as well as investments.

Loss per share stood at 0.73 US cent for the same period, compared with earnings per share of 1.09 cents a year ago.

Revenue for the second half rose 4 per cent to US$52.2 million, from US$50.2 million a year ago. This was mainly due to a lack of fair-value adjustments as a result of the group’s change of its financial year-end from March 31 to Sept 30.

Due to the change, the group’s second-half revenue and other income are not comparable with the same period a year ago. The group’s annual valuation exercise will only be performed on Sept 30, 2020, for audit and reporting purposes.

Moreover, the group’s revenue was affected as its operator fee income revenue also does not reflect the annual valuation exercise in Hlaing River Golf and Country Club Co’s income statement for the six months ending March 31, 2020.

No dividend was declared for the period, unchanged from a year ago.

For the full year ended March 31, 2020, net loss was US$73.4 million, while revenue was 7.6 per cent lower at US$93 million.

Melvyn Pun, Yoma Strategic’s chief executive, said the Covid-19 pandemic’s unprecedented disruptions in every sector of the economy had affected the group’s businesses.

Despite a slower business environment, the effects on consumer behaviour have created opportunities for the group to better serve its customers and streamline its operations. One example is the faster digital adoption in the Wave Money – the group’s mobile payments provider in Myanmar – and food and beverage operations.

“While the path to recovery remains uncertain in its timing and trajectory, we believe our employees’ resilience and our ability to adapt and transform will allow us to weather the current business environment and emerge as a stronger organisation,” Mr Pun added.

Yoma Strategic shares were trading down 1.2 Singapore cents or 5.7 per cent at 19.8 cents as at 10.15am on Thursday.

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Source : The Business times

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