The Myanmar-based conglomerate Yoma Strategic Holdings on Friday reported a near 57 percent slump in second-quarter net profit citing the absence of the fair value gain from the telecommunication towers investment.
Net profit attributable to shareholders fell to S$3.7 million in the three months ended September 30 compared to S$8.5 million in the corresponding period last year.
Total revenue gained about 33 percent to $33.1 million in the quarter.
The growth in revenue was driven by the strong operational performance of its automotive & heavy equipment and consumer businesses.
Yoma Strategic saw a fair value gain of S$14.7 million on the telecommunications towers investment, which was recognised in the second quarter of last year.
Administrative expenses rose 8.6 percent to S$13.5 million, largely due to the increase in staff costs, rental and lease expenses and depreciation in relation to the growing number of KFC stores and New Holland tractors branches.
Revenue from the automotive & heavy equipment and consumer businesses, which contributes nearly 54 percent to group's revenue, surged 109.9 percent to S$14.6 million.
Revenue from the group's KFC business grew by 20.1 percent year-on-year to S$3.3 million, mainly due to the addition of new stores.
Yoma Strategic, which runs KFC stores in Myanmar, said it had a total of 16 KFC stores by the quarter-end. It plans to increase the store count to 22 nationwide by March 31, 2018.
"In the coming months, we expect the positive momentum from our non-real estate business to continue with the opening of more KFC restaurants and the peak dry season for our New Holland tractors," Melvyn Pun, Yoma Strategic's Chief Executive Officer said in a statement.
Shares of Yoma Strategic were unchanged at S$0.59 on the Singapore Exchange. The stock has risen about 1 percent so far this year.