Eco World 3Q Net Profit Rises To RM80.44 Mln

KUALA LUMPUR, Sept 19 (Bernama) -- Eco World Development Group Bhd’s net profit for the third quarter ended July 31, 2024 (3Q 2024) increased to RM80.44 million from RM66.33 million last year.

The revenue for the quarter under review widened to RM526.21 million from RM476.85 million last year, attributable to higher contributions from active (property) phases and newly launched phases.

The property development company said that its revenue in 3Q 2024 was higher than 3Q 2023 by 10.4 per cent, whilst gross profit was higher by 27.1 per cent. 

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“Gross profit recorded a higher percentage increase than revenue due to the improvement in gross profit margin from 27.2 per cent in 3Q 2023 to 31.3 per cent in 3Q 2024.

“This was mainly due to the realisation of cost savings of certain completed and near completion phases,” it said in a Bursa Malaysia filing today.

The board of directors has declared a second interim dividend in respect of the financial year ending Oct 31, 2024, of two sen per share, payable on Oct 23, 2024.

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The total dividend for the current financial period is four sen per share.

Meanwhile, for the commutative period of nine months, the net profit added to RM220.11 from RM186.03, while the revenue accumulated to RM1.61 billion from RM1.38 billion previously.

“The main projects which contributed to revenue and gross profit in 3Q 2024 were Eco Botanic, Eco Botanic 2, Eco Spring, Eco Tropics, Eco Business Park I, Eco Business Park II and Eco Business Park III in Iskandar Malaysia and Eco Majestic, Eco Forest and Eco Sanctuary in the Klang Valley,” it said.

For prospects for the current financial year, it said that EcoWorld Malaysia has surpassed its financial year 2024 (FY2024) sales target of RM3.5 billion in the 10 months of FY2024.

“RM2.21 billion or 63 per cent of total year-to-date (YTD) sales were contributed by our projects in Iskandar Malaysia, whilst the Klang Valley and Penang contributed 27 per cent and 10 per cent, respectively,” it said.

On prospects, the company said that arising from the strong sales performance of all five of the group’s revenue pillars, cash flows generated from operating activities increased to RM657.6 million for the nine months up to July 31, 2024.

“The significant build-up in cash generated further reflects the maturity of the group’s ongoing projects which are mostly in a highly cash-generative phase. Accordingly, the group’s net gearing position has continued to reduce from 0.24 times in 2Q 2024 to 0.21 times in 3Q 2024.

“The group is strongly positioned to acquire more landbank and is actively working on several potential acquisitions to broaden and deepen its market share under every segment of the property market, as it continues to strive for robust and sustainable growth for the future,” it added.

-- BERNAMA