Total sales from Malaysian projects for the financial year exceeded RM3.1bil with more than RM2.2bil achieved in the second half of the year.
KUALA LUMPUR: Eco World Development Group Bhd
posted a net profit of RM68.53mil in the fourth quarter ended Oct 31, more than double the sum of RM33.71mil recorded in the year-ago quarter on contributions from its joint ventures and projects.
In its stock exchange filing, the group said total sales from Malaysian projects for the financial year exceeded RM3.1bil with more than RM2.2bil achieved in the second half of the year due to the #OnlyEcoWorld Campaign.
Meanwhile, the group's share of unbilled sales to be carried over to FY2019 stands at RM6.43bil, which is a record high for Eco World.
Revenue for the quarter under review was RM607.58mil versus RM904.06mil in the 2017 quarter, as the group said its lower revenue and gross profit resulted from the completion of some major projects and delivery of a significant number of completed property units to customers by subsidiaries.
However, this was offset by higher profit from its joint ventures.
"Out of the Group’s four Malaysian joint-ventures, three commenced revenue and profit recognition in 1Q 2018, followed by the final one in 3Q 2018.
"As a result, the Group recognised a profit of RM17.5mil as its share of results of its Malaysian joint ventures in 4Q 2018 versus a loss of RM2.9mil in 4Q 2017."
Eco World recorded RM18.9mil as it share of profit of EcoWorld International Bhd in Q4 as compared to a loss of RM8.8mil in in the year-ago quarter.
“2018 has been a landmark year for the Group on many fronts. Our partnership-for-growth strategy put in place two years ago to enable us to grow strongly without over-extending our balance sheet is now bearing fruit.
"All our joint ventures, whether within or outside Malaysia, have commenced revenue and profit recognition – these numbers are set to grow healthily as the projects mature and become more established," said Datuk Chang Khim Wah, president and CEO of Eco World in a statement.
As at Oct 31, the group has an undeveloped landbank of 4,872.2 acres.
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