Yoma Strategic Holdings Ltd (SGX: Z59) is a conglomerate that focuses on Myanmar. It has business interests in a wide variety of sectors in the country, such as real estate development, agriculture, tourism, vehicle distribution, and food and beverage retail.
Given the complexity of Yoma Strategic’s business, I think it will be useful for investors to have a quick overview of the company’s businesses separately. In this article, I will share seven points about the Consumer segment that will help investors better understand what’s going on there:
1. In Yoma Strategic’s fiscal year ended 31 March 2017 (FY2017), it generated revenue of S$124.2 million, of which 46.6% came from Non-Real Estate businesses. The Consumer segment belongs to this category.
2. The Consumer segment is made up of three parts, namely Food and Beverage Retail, Food and Beverage Distribution, and Cold Chain Logistics.
3. The Food and Beverage Retail business focuses mainly on operating KFC franchise restaurants in Myanmar. In fact, KFC is the first global quick service restaurant brand to open in the country. Yoma Strategic opened its first KFC restaurant in June 2015. As of 31 March 2017, it had 12 stores in Yangon, with a target to have 22 stores across Myanmar by 31 March 2018.
4. Yoma Strategic’s Food and Beverage Distribution arm produces, markets, and distributes alcoholic beverages in Myanmar. It has a distribution network that covers 80% of the country, and it owns the second largest domestic whiskey brand, High Class Whiskey.
5. In February 2017, the Food and Beverage Distribution business partnered Metro Group, a wholesale and food retailer, to establish a one-stop food distribution platform in Myanmar. A depot for wholesale distribution located in the Thilawa Special Economic Zone is currently under development and is expected to commence operations early this year.
6. The Cold Chain Logistics business operates under KOSPA Limited, a partnership between Yoma Strategic and the Japan-based Kokubu Group. KOSPA runs a 45,000 square feet multi-temperature storage facility in Yangon, and has a fleet of temperature-controlled trucks serving a range of customers from the food and beverage, FMCG (fast-moving consumer goods), agricultural, pharmaceutical, and hospitality industries.
7. The majority of revenue in the Consumer segment is generated from the KFC restaurants. In FY2017, revenue from the restaurants jumped by 137% to S$10.9 million.
- Singapore’s Top 5 Dividend-Paying Blue-Chip Stocks
- The 30 Best Stocks In Singapore For 2018
- The 3 Best Performing REITs In 2017
- These 6 Blue Chips Beat The Straits Times Index In 2017
- These 3 Straits Times Index Stocks Are Currently Undervalued
- The Rigorous Investment Rule that Turned $1 to A Stunning $89
The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn't own shares in any companies mentioned.