EcoWorld Malaysia EBIT up 31% to RM81.3mil
PETALING JAYA: Eco World Development Group Bhd (EcoWorld Malaysia) recorded core earnings before interest and tax (EBIT) of RM81.3mil from its Malaysian operations in the second quarter ended April 30.
The property developer announced yesterday that its core EBIT was 30.9% higher compared with RM62.1mil a year ago.
“This is mainly attributable to three of its Malaysian joint ventures (JVs) – Eco Grandeur, Eco Ardence and Bukit Bintang City Centre (BBCC) – having commenced revenue and profit recognition,” it said.
These JVs enabled EcoWorld Malaysia to recognise RM9mil as the group’s share of profit from its Malaysian JVs versus a loss of RM5.3mil a year ago.
“As at the second quarter, EcoWorld Malaysia achieved sales of RM923mil while EcoWorld International recorded RM698mil sales in the first seven months of financial year 2018 (FY18),” it said.
EcoWorld Malaysia president and CEO Datuk Chang Khim Wah said the second quarter began well with sales interest picking up following a successful Chinese New Year campaign and positive response to various localised marketing activities undertaken by its projects in the Klang Valley, Iskandar Malaysia and Penang.
However, in the lead up to the 14th general election (GE14), buying momentum slowed – uncertainties on the outcome caused many customers to hold back from making commitments in April up until early May 2018.
Chang noted that post-GE14, the public mood has improved markedly. However, sales were still slow in the month of May, as many Malaysians continued to be caught up with post-election news fever.
“Post-GE14, customers have also expressed a renewed optimism and greater confidence regarding their personal futures and that of their families, going forward,” he said.
“Through #OnlyEcoWorld we will be working hard over the next four months to catch up on our RM3.5bil sales target from our Malaysian projects for FY18. Response so far has been tremendously encouraging,” he said.
In the second quarter to end April, its net profit was RM34.45mil compared with RM33.68mil a year ago. Its revenue was RM498.68mil compared with RM670.02mil previously. Earnings per share was at 1.17 sen compared with 1.16 sen before.
For the first half, its earnings were RM58.54mil compared with RM149.84mil in the previous corresponding period. Revenue came in at RM1.06bil compared with RM1.26bil previously.