Ecoworld’s pre-tax profit slips to RM49.98 million in 2Q17
KUALA LUMPUR: Eco World Development Group Bhd’ s pretax profit slipped to RM49.98 million in the second quarter ended April 30, 2017 ( 2Q17), from RM51.87 million in the same quarter in 2016.
Revenue, however, rose nine per cent to RM670 million from RM614.6 million previously, the property developer said in a filing to Bursa Malaysia today.
It said the results were due to lower gross profit margins in the just- ended quarter, which it attributed to the products launched by Eco Botanic and Eco Majestic last year.
“The impact of the lower margin products was, however, mitigated by lower selling and marketing expenses, as well as lower administrative expenses incurred in 2Q17 as compared to 2Q16,” it said.
The group said other ongoing projects which contributed to the revenue and gross profit in 2Q17 included Eco Sanctuary and Eco Sky in the Klang Valley; Eco Spring, Eco Summer and Eco Business Park 1, Eco Tropics and Eco Business Park III in Iskandar Malaysia, as well as Eco Meadows and Eco Terraces in Penang.
The group’s sales from its Malaysian projects amounted to RM552 million in 2Q17.
As of May 31, its year- to- date sales totalled RM1.7 billion, which was approximately 30 per cent higher than the yeartodate sales secured during the corresponding period in 2016.
The group said its Klang Valley projects contributed RM1.33 billion, while projects in Iskandar Malaysia and projects in Penang contributed RM331 mi l l ion and RM45 million respectively.
Going forward, it said, three new projects scheduled to be launched in the second half of this year – Eco Forest and Eco Business Park V ( Klang Valley) and Eco Horizon ( Penang) – were expected to contribute towards the group’s sales in the fourth quarter.
“Based on sales secured to- date and the plans which are under way for the next two quarters, the board is confident that the company is well- positioned to achieve its sales target of RM4 billion sales in Malaysia for 2017 financial year,” it said.