Eco World Development Q3 net profit dips to RM26.1m on higher costs
KUALA LUMPUR: Eco World Development Group Bhd’s (Eco World Malaysia) net profit in the third quarter ended July 31 plunged 41.45 per cent to RM26.10 million from RM44.58 million previously.
It said this was due to cost of new terms loans taken, advances to joint venture as well as share of initial losses incurred by jointventure firms.
In an exchange filing yesterday, the property developer’s third quarter revenue rose 4.89 per cent to RM762.92 million from RM727.34 million in the same period last year on back of higher percentage of completion and a higher number of units sold.
Meanwhile, Eco World Malaysia achieved 40 per cent higher sales totalling RM772 million under the Eco World brand in the third quarter, compared with RM552 million in the second quarter. It noted that in the first 10 months of financial year ending October 31, sales increased nine per cent to RM2.39 billion from RM2.02 billion in the same period last year.
Its president and chief executive officer Datuk Chang Khim Wah said in the first half of the year, the company had been busy handing over the first phases of properties sold.
“To date we have delivered close to 4,500 units to the buyers. We are delighted that the strong engagement with customers achieved during the handover process has resulted in positive and increased word-ofmouth referrals, which boosted sales for Eco Majestic in Semenyih and Eco Spring, Eco Summer and Eco Tropics in Iskandar Malaysia.”
Meanwhile, Eco World International Bhd president and chief executive officer Datuk Teow Leong Seng said its projects in the United Kingdom had continued to see steady sales.
It has so far recorded sales of RM1.56 billion for the current financial year.
He noted there were signs of recovery in demand for not just new houses but also office space.
“This validates our confidence that London will retain its status as one of the world’s foremost global cities and a leading economic, financial, educational and cultural destination,” he added.
For the last two months of the financial year, the group will be working towards achieving its sales target of RM4 billion from local projects and RM2.5 billion from international projects.