Yoma Strategic returns rebounds to S$3.3m net profit in 2Q2014

From S$4.2m net loss in 2Q2013.

Yoma Strategic Holdings’ (Yoma Strategic) net profit attributable to shareholders for its second quarter ended 30 September 2013 (2Q2014) recorded a S$3.3 million, on the back of a 132.4% increase in revenue to S$27.0 million.

The revenue recorded for 2Q2014 was the highest quarterly revenue since Yoma Strategic’s listing on the SGX-ST Mainboard in 2006. The Group’s revenue growth was driven by the continued strong sales of residences and land development rights (LDRs) as the demand for high quality homes continues to outstrip supply.

The sales of residences and LDRs accounted for S$26.4 million or approximately 97.8% of total revenue, compared to S$10.8 million for the previous corresponding quarter (2Q2013).

Out of the S$26.4 million, the breakdown in sales for residences and LDRs were S$11.0 million and S$15.4 million respectively. As a result, net profit attributable to equity holders of the Company improved from a net loss of S$4.2 million in 2Q2013 to a net profit of S$3.3 million in 2Q2014.

Commenting on the 2Q2014 financial results, Yoma Strategic’s CEO, Andrew Rickards said, “We are pleased to deliver a solid set of results as our Real Estate Division continues to perform strongly. While real estate remains our strongest growth driver, we are also building our non-real estate businesses and are confident that they will begin to contribute meaningfully in the near- to mid-term.”

Gross profit margin declined marginally to 44.9% in 2Q2014 as compared to 47.2% in 2Q2013 due to lower revenue generated from the sales of Pun Hlaing Golf Estate (“PHGE”) LDRs, where the margins are higher. It however improved by 5.8 percentage points compared to 39.3% in the preceding quarter (1Q2014).