Yoma Strategic Holdings
announced a 77.7% jump in net profit to US$2.56 million at the end of
Q1, from US$1.44 million year-on-year (YoY), attributed to growth in its
automotive sales and property rental income more than countering the
decline in sales of residences and land development rights, The Straits
Times reported.
According to the article the reported revenue by the company rose 31% to US$22.6 million, with its automotive segment significantly supported by the contribution from recent acquisition, Convenience Prosperity Company, which sells tractors and farm equipment in Myanmar.
Due to a healthy demand from a growing expatriate market, the group’s property leasing portfolio saw rental income accounting for approximately 11% of the revenue, according to Yoma.
However, the article further mentioned that losses accrued from joint ventures almost quadrupled to US$249,000, from US$65,000, mainly due to the recognition of share of currency translation loss with the kyat currency having come under pressure recently. In the article, the firm also noted that Myanmar’s current account deficit is expected to widen beyond 7% in FY2015/2016.
Yoma’s US$348,000 share of profits from associated companies, from zero YoY, more than countered the losses. According the article, this is largely due to its 25% stake in Digicel Asian Holdings, a telecommunication towers company, and 30% interest in Access Myanmar Distribution Co., beverage producer and distributor.
You can read the full article here: Yoma sees Q1 net profit jump 78% to $2.56m, The Straits Times
Photo: Yoma Strategic Holdings // SPA Myanmar
According to the article the reported revenue by the company rose 31% to US$22.6 million, with its automotive segment significantly supported by the contribution from recent acquisition, Convenience Prosperity Company, which sells tractors and farm equipment in Myanmar.
Due to a healthy demand from a growing expatriate market, the group’s property leasing portfolio saw rental income accounting for approximately 11% of the revenue, according to Yoma.
However, the article further mentioned that losses accrued from joint ventures almost quadrupled to US$249,000, from US$65,000, mainly due to the recognition of share of currency translation loss with the kyat currency having come under pressure recently. In the article, the firm also noted that Myanmar’s current account deficit is expected to widen beyond 7% in FY2015/2016.
Yoma’s US$348,000 share of profits from associated companies, from zero YoY, more than countered the losses. According the article, this is largely due to its 25% stake in Digicel Asian Holdings, a telecommunication towers company, and 30% interest in Access Myanmar Distribution Co., beverage producer and distributor.
“We are pleased to see steady revenue growth from real estate rental and non-real estate segments and expect the trend to continue. The group is also expecting a strong demand from the growing consumer market with the launch of its first KFC store in Yangon.” said Yoma CEO Melvyn Pun.According to Yoma executive chairman Serge Pun, the group intends to open more KFC stores, an expected significant revenue contributor, in Yangon before the year’s end and increase store numbers throughout Myanmar over the coming years.
“Our automotive business, in particular our Yoma Fleet business, will continue to see strong growth supported by incoming MNCs setting up operations in Myanmar,” the executive chairman said.Yoma may work with local and foreign banks to secure financing for itself and its customers, particularly for the real estate business, the group said in the article.
“This is in line with our 2020 vision to build our non-real estate businesses to match our real estate operations.”
You can read the full article here: Yoma sees Q1 net profit jump 78% to $2.56m, The Straits Times
Photo: Yoma Strategic Holdings // SPA Myanmar
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