MYANMAR. Travel retail and F&B stood out as Singapore Myanmar Investco Limited (SMI) posted an overall -5.6% decrease in first half revenues for the 2019/20 financial year, to US$11.43 million. The company manages duty free and food & beverage (F&B) outlets at Yangon Airport’s international terminal.
However, revenues for what the company describes as its focus areas – travel & fashion retail and F&B – both rose significantly over the same period.
Travel & fashion retail recorded revenues of just over US$8 million in H1, a rise of US$956,000 (+11.95%) against the corresponding period of last year. There was a revenue rise of US$311,000 (+38.6%) for F&B over the same duration.
SMI’s gross profit decreased by -14.8% (US$0.4 million) in H1, which the company said reflects the decision to reduce the capital expenditure usage fee to its local retail distributor by US$0.8 million. It also noted that there was a slower than expected recovery in passenger purchasing at Yangon Airport, as well as reduced financing charges.
Without this reduction, gross profit margin would have increased to +29.2%, reflecting the higher underlying gross profit of retail in the business mix, SMI noted.
