SINGAPORE (THE BUSINESS TIMES) - Mainboard-listed Yoma Strategic Holdings in a business update on Monday (Feb 14) said revenue fell 17.7 per cent year-on-year to US$24.4 million (S$32.9 million) for the first quarter ended Dec 31, 2021.

The group, however, said its core operating Ebitda (earnings before interest, taxes, depreciation and amortisation) and profitability grew 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 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.

In the financial services segment where revenue fell 17.7 per cent, Yoma expects growth in the finance lease segment will continue to be impacted in the near-term until additional funding lines can be secured from banks.

It noted that revenue and transaction volumes from its fintech arm, Wave Money, continued to be affected by the broader slowdown in economic activities although Ebitda remained positive and margins have recovered to pre-pandemic levels.

The motors segment posted 47.2 per cent lower revenue for the quarter as its heavy equipment business continued to be affected by the availability of credit for its customers. Its automotive business also saw fewer transaction volumes after imports of all motor vehicles were suspended from October 2021.

Shares of Yoma closed 0.1 cent, or 0.7 per cent lower, at 13.9 cents on Friday.