For The Year Ended March 31, 2019

MMK 279.7 bn

Record Revenue

Record revenue primarily driven by Financial Services business

39.0%*

Financial Gearing Ratio

Remains below the Group’s 40% financial gearing target

MMK 9.0 bn

Net Profit attributable to Equity Holders

Lifted by strong gross profit and share of profit from associates

39.6%

Gross Profit Margin

Improved gross profit margins in both
Financial Services and Healthcare Services businesses

 FY 2019FY 2018% Change
For the financial year (MMK ‘000)
Revenue279,735,934205,619,92636.0%
Gross Profit110,728,84972,765,90952.2%
Net Profit14,443,38924,777,453(41.7%)
Net Profit attributable to Equity Holders9,011,33718,617,449(51.6%)
Net Cash and Cash Equivalents350,634,146286,955,94622.2%
Earnings per share (MMK per share)338746(54.7%)
As at 31 March 2019 (MMK ‘000)
Non-Controlling Interests92,904,25288,221,6055.3%
Net Debt1119,051,82284,541,03340.8%
Total Capital2306,197,602271,105,97612.9%

* 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 Group’s FY2019 financial results saw a revenue growth of 36.0% to MMK 279.7 billion from MMK 205.6 billion in FY2018. The main driver of this revenue increase was due to a 36.5% increase in Financial Services revenue from MMK 186.5 billion in FY2018 to MMK 254.5 billion in FY2019. This healthy revenue increase was contributed by Yoma Bank’s growing loan book as well as a gradual increase in fee income from its agriculture financing program, loan facilities, and hire-purchase products. Similarly, the total revenue of the Healthcare business also increased by 32.6% from MMK 18.8 billion in FY2018 to MMK 24.9 billion in FY2019.

Gross profit margin rose from 35.4% in FY2018 to 39.6% in FY2019 mainly due to Yoma Bank having an improved gross margin contributed by relatively lesser interest expenses compared to revenue growth, while the Healthcare business maintained its gross profit margin constant.

Total Group expenses increased by 49.7% from MMK 69.9 billion in FY2018 to MMK 104.7 billion in FY2019, mainly due to higher costs incurred for employee compensation and professional fees amongst other cost items. Yoma Bank’s expansion and its digital initiatives for the organisation were the main drivers in increasing professional fees.

The Group also saw a significant increase in its share of profit from associates and joint ventures as it grew by 74.9% from MMK 11.7 billion in FY2018 to MMK 20.5 billion during FY2019. This growth was mainly driven by fair value gains of investment properties from Thanlyin Estate Development Limited and one-time profit gained from Pun Hlaing Links Services Company Limited arising from a transfer of financial assets to Yangon Land Company Limited.

The Group’s total net profit dropped by 41.7% to MMK 14.4 billion in FY2019 compared to MMK 24.7 billion in FY2018. As a result of lower net profit coupled by higher average number of shares outstanding in FY2019, earnings per share decreased by 54.7% from MMK 746 in FY2018 to MMK 338 in FY2019.

The Group’s total current assets grew by 21.4% in FY2019. The main driver for this growth was contributed by Yoma Bank’s loan book growth. On the liability side, the total current liabilities for Group grew at 24.9% due to significant growth in customer deposits at Yoma Bank. The Group’s equity grew marginally at a rate of 1%, which is attributable to increased retained earnings and non-controlling interest mainly coming from Yoma Bank.

Revenue Breakdown by Sectors
(MMK billioin)

Key Financial Highlights
(MMK billioin)

Financial Services

Yoma Bank

Net Interest Revenue (MMK billion)

In Financial Services, Yoma Bank continues to focus on its commitment towards growing small and medium-sized businesses and strengthening of its digital capacity. The introduction of Myanmar’s first digitised Home Loan and Hire Purchase experience by the Bank enabled a more efficient loan application experience for both employees and customers and allowed the Bank’s performance to grow in the long run.

Healthcare

Pun Hlaing Siloam Hospitals

Total Revenue (MMK billion)

In the Healthcare business, PHSH’s revenue grew mainly due to a healthy increase in ancillary services revenue along with the increase in direct hospital services revenue from rising patient volume across inpatient and outpatient services.

Real Estate

Yoma Land

In the Real Estate business, Yoma Land, expanded its real estate offering with City Loft in FY2019, a new division of modern affordable housing which represented a major milestone for Yoma Land.

Tourism

Memories Group

The Group’s investment in the Tourism sector has progressed well in terms of its asset base. Subsequent to the end of FY2019, Memories Group acquired 15.28% in Strand Hotel International Limited, signifying the business’s continuing efforts to actively expand its hotel portfolio and add more hotel management contracts.

Tourism assets added from minority interest acquisition of Strand Hotel International Limited
- The Strand Hotel
- Inya Lake Hotel
- Hotel G Yangon
- The Strand Cruise