MMK 205.6 bn

Record Revenue

Record revenue primarily driven by Financial Services business

31.2%*

Financial Gearing Ratio

Remains below the FMI Group’s 40% financial gearing target

MMK 18.6 bn

Net Profit attributable to Equity Holders

Lifted by strong gross profit and share of profit from associates

35.4%

Gross Profit Margin

Improved gross profit margin in Financial Services

 FY 2018FY 2017% Change
For the financial year (MMK ‘000)
Revenue205,619,926161,349,87927.4%
Gross Profit72,765,90952,503,65938.6%
Net Profit24,777,45314,900,52666.3%
Net Profit attributable to Equity Holders18,617,44912,154,20353.2%
Net Cash and Cash Equivalents286,955,946203,244,22441.2%
Earnings per share (MMK per share)74651844.0%
As at 31 March 2018 (MMK ‘000)
Non-Controlling Interests88,221,60581,318,9538.5%
Net Debt184,541,03356,464,59649.7%
Total Capital2271,105,976236,646,83514.6%

*    Gearing ratio is calculated as net debt divided by total capital

  1. Net debt is calculated as borrowings (excluding loans from non-controlling interests) plus trade and other payables less cash and cash equivalents
  2. Total capital is calculated as net assets attributable to equity holders of the company plus net debt

Operational & Financial Review

FMI Group Overview

The FMI Group’s FY2018 financial results recorded a healthy revenue growth of 27.4% to MMK 205.6 billion from MMK 161.3 billion in FY2017. This growth was mainly driven by a 27.5% increase in Financial Services business revenue from MMK 146.4 billion in FY2017 to MMK 186.6 billion in FY2018, indicating the Financial Services business’ continued position as the major revenue generator for FMI Group.

Gross profit margin rose from 32.5% in FY2017 to 35.4% in FY2018 mainly due to Yoma Bank having an improved gross margin contributed by relatively lesser interest expenses compared to revenue growth, while PHSH maintained its margin constant.

Total FMI Group expenses increased from MMK 47.7 billion in FY2017 to MMK 69.9 billion in FY2018, mainly due to higher costs incurred for employee compensation amongst other cost items. Higher employee compensation is the result of the FMI Group’s continuous strategy to hire qualified individuals to accommodate its expanding business.

The FMI Group also saw a significant increase in its share of profit from associates and joint ventures which grew by 53.3% from MMK 7.6 billion in FY2017 to MMK 11.7 billion in FY2018. This growth was largely driven by the one-time profit gained from sales of Chindwin Investments Limited and Shwe Lay Ta Gun Travels & Tours Company Limited to Memories Group. As a result, the FMI Group accounted net profit growth of 66.3% in FY2018.

The FMI Group’s total current assets grew by 26.9% in FY2018. The main driver for this growth was contributed by Yoma Bank’s loan book growth, which highlights Yoma Bank’s extensive role as a financier in Myanmar. On the liability side, the total current liabilities for the FMI Group grew moderately at 28.7% as a result of a growth in deposits at Yoma Bank. FMI Group’s equity grew at a modest rate of 8.6%, which is attributable to increased retained earnings for Yoma Bank and the Company during the year.

Revenue Breakdown by Sectors
(MMK billioin)

Key Financial Highlights (MMK billioin)

Financial Services

Yoma Bank

Net Interest Revenue (MMK billion)

Yoma Bank continues to be the major revenue generator for the FMI Group with a focus on growing its SME loan portfolio by executing funding agreements with local and international financiers.

Healthcare

Pun Hlaing Siloam Hospitals

Total Revenue (MMK billion)

In the Healthcare space, PHSH’s revenue grew mainly due to an increase in patient volumes, as the hospital continues to expand its network in support of the development of PHSH’s ‘Hub and Spoke’ service delivery model.

Real Estate

Yoma Land

On the Real Estate sector, due to higher market interest for rental properties and smaller units, some units in Galaxy Towers have been allocated for long-term rental, while others have been redesigned to cater to the demand for smaller units. This is in alignment with the Yoma Group’s strategy of balancing its Real Estate revenue between development properties and rental income from investment properties. In addition, the launch for the sales of The Peninsula Residences Yangon has attracted healthy interest from both domestic and foreign investors, which the FMI Group believes will contribute to long term returns for its shareholders.

Tourism

Memories Group

The FMI Group’s investments in the Tourism sector have progressed well with the listing of Memories Group. With recent acquisitions made, Memories group is in the strategic direction to capitalise on the Myanmar tourism industry.