EcoWorld FY21 net profit rises to RM182.74mil, declares 2 sen dividend

Datuk Chang Khim Wah

KUALA LUMPUR: Eco World Development Group Bhd’s (EcoWorld Malaysia), which saw its net profit jumped 14.1% to RM182.74mil in the financial year ended Oct 31, 2021 (FY21) compared with RM160.15mil a year ago.

The improved performance was reflective of higher sales and margins achieved by its Malaysian operations, continued financial discipline which contained selling and administrative costs and lower finance costs incurred.

Its revenue in FY21 stood at RM2.04bil, up 2.3% from RM1.99bil in FY20.

In a statement, it said EcoWorld Malaysia achieved sales of RM3.522bil in FY21, which is 53% higher than in FY20 and 23% higher than the target of RM2.875bil set for the year.

The share of profits from Malaysian joint ventures amounted to RM117.7mil which was 16.7% higher than FY20 bolstered by strong sales and good progress on site notwithstanding several periods of restrictions imposed by the Government during the financial year due to Covid-19.

However, its share of profits from EcoWorld International Bhd (EWI) at RM27.3mil was 49.5% lower than FY20 due to losses recorded in 4Q21.

“The group’s share of future revenue as at Oct 31 remains high at RM3.514bil – RM3.197bil relates to its Malaysian projects whilst EcoWorld Malaysia’s attributable share of EcoWorld International’s future revenue was RM318mil,” EcoWorld Malaysia said.

The developer added that its balance sheet continued to strengthen with its cash and bank balances increased by 72%, net borrowings reduced by 27%, net gearing reduced to 0.44 times and net asset per share grew to close at RM1.62 as at Oct 31.

“Premised on the group’s improved balance sheet and cash position, the Board is recommending the payment of a second interim dividend of 2 sen per share.

“Along with the first interim dividend of two sen per share already paid in July 2021, total dividends for FY2021 is four sen per share which is double the amount declared for FY20,” EcoWorld Malaysia said.

EcoWorld Malaysia president and CEO Datuk Chang Khim Wah said it had been a “remarkable year” for EcoWorld Malaysia.

“Amidst an ongoing Covid-19 pandemic we managed to sell 4,984 properties with a total sales value of RM3.5bil which is near the historic high of RM3.7bil achieved in FY2017.

“All three regions (Klang Valley, Iskandar Malaysia and Penang) have substantially outperformed the targets set and strong increases were recorded across our residential, commercial and industrial portfolios,” Chang said.

Based on the results achieved and its improving balance sheet position, EcoWorld Malaysia has set a sales target of RM3.5bil for FY22.

“We have had a good start with RM376mil sales achieved in November 2021, the first month of FY22. Our focus in this new financial year is on enhancing value for our shareholders with the aim of further improving profitability by introducing products with

higher margins commensurate with the increasing maturity of our landbank and projects,” Chang said.

“This is also in line with our commitment to be able to continue rewarding our shareholders with dividend payments as we grow in both profitability and financial strength,” he added.