Eco World posts higher profit in Q3 as property sales rebound

  • Business
  • Thursday, 20 Sep 2018

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 said its home ownership campaign launched in June boosted the group’s sales and profit in the third quarter ended July 31.

Net profit rose 47.6% to RM38.5mil on revenue of RM490mil.

As at Aug 31, total sales achieved has reached RM2bil, which is more than double the total sales of RM923mil recorded in the first six months of the financial year.

“The intense social media and digital marketing drive over the last three months has been very successful in reaching out to our target customers,” president and CEO Datuk Chang Khim Wah said in a statement on Thursday.

The positive sales momentum generated through the on-line campaign, Chang said, will be further boosted by a series of off-line customer focused events which culminated with the #AnakAnakMalaysia 2018 celebrations held over two months from July to September.

“Over the next two months we will be working hard to convert the many leads generated from both our on-line and off-line campaigns to lock in sales at all our projects with the aim of achieving our FY18 Malaysian sales target of RM3.5bil by Oct 31,” Chang said.

On the financial front, revenues from sales of EcoWorld brand properties in Malaysia also grew strongly.

The company said cumulative nine-month revenue of RM1.55bil was recorded by the group’s subsidiaries and RM705.4mil recorded by its Malaysian joint-ventures of which the group’s effective share, based on its equity stakes in the respective joint-ventures, amounted to RM374.8mil.

This contributed to the steady growth in EcoWorld Malaysia’s core earnings.

Core earnings before interest and tax (Ebit) expanded 10.9% to RM71.8mil in the third quarter under review compared with RM64.7mil achieved in the same quarter a year ago.

Core profit before tax was 6.2% higher.

The improved results, the company said, was due to commencement of revenue and profit recognition by all of the group’s joint-venture projects and lower expenses.

Outside Malaysia, EcoWorld International achieved two significant milestones in the third quarter ended July 31.

The group commenced the handover of units in Amelia Tower of London City Island in July. This marks the group’s first overseas project to be handed over, three years after the EcoWorld brand was launched internationally in 2015.

The successful completion of Amelia Tower enabled the group to achieve its second milestone of reporting its maiden quarterly net profit attributable to shareholders of RM10.4mil. EcoWorld Malaysia’s 27% share amounted to RM2.8mil.

“More units in London City Island and another project, Embassy Gardens, are scheduled for handover in the remaining months of the

financial year which will contribute positively to the group’s profitability in the fourth quarter,” Chang said.

EcoWorld International is also on track to achieve its RM3bil sales target for FY2018.

As at Aug 31, a total of RM1.026bil sales have been secured with its ongoing projects in London contributing RM847mil while those in Australia generated RM179mil.
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