We are in the midst of the earnings season.
As is common with every earnings season, there will be some companies posting growth, some posting mixed numbers, while others experience declines. So, which are the companies that have reported mixed results recently? Let’s look at two of them.
Yoma Strategic Holdings Ltd (SGX: Z59) is the first on the list of mixed bags.
As a quick introduction, Yoma is a business that is involved in a wide array of businesses including real estate development, agriculture, construction, tourism, automobiles, and even retail. The conglomerate’s business is mainly focused in Myanmar.
Quarterly revenue was flat at S$24.1 million as compared to a year back. Gross profit was down by 34.9% year-on-year mainly due to the higher portion of revenue generated from the Automotive & Heavy Equipment segment, which has lower margins as compared to the Real Estate segment.
However, net profit attributable to shareholders surged 1352.5% year-on-year to S$16.8 million. This was largely due to a one-off gain on disposal of S$27.7 million. Excluding the gain, Yoma Strategic would have reported a loss for the period.
Melvyn Pun, Yoma Strategic’s Chief Executive Officer, commented on the quarter results:
“We are pleased with the high growth in our Heavy Equipment, Yoma Fleet Leasing and KFC businesses and expect them to contribute meaningfully to the Group in the coming years. The current market provides us attractive expansion opportunities which focus on domestic consumption patterns, namely in the consumer and financial services sectors.”
Singapore Telecommunications Limited (SGX: Z74) is the next company that has reported mixed performance recently.
Group revenue for the quarter was up 4.4% year-on-year to S$4.6 billion whereas underlying net profit came in lower by 8% year-on-year. The improvement in revenue was driven by the Australia consumer business and the digital life business.
The lower underlying net profit, on the other hand, was due to lower contribution from associates. On a positive note, free cash flow came in at S$795 million, up 42.1% as compared to the same period last year.
Chua Sock Koong, Singtel’s chief executive, shared her view on the latest results:
“We see our investments in network infrastructure and spectrum as critical to our future growth and longer term returns in this digital world. Already, our transformation strategy is delivering with digital and ICT services accounting for 23% of our revenue this quarter.
In our core business, the digitalisation of our services across the Group has enabled us to deliver better customer experience and manage costs. The Australia business, particularly mobile, drove profitable growth. We will strive to provide more value to our customers by anticipating their needs and staying ahead of the competition.”
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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.