ECOWORLD MALAYSIA HITS RECORD HIGH NET PROFIT, TOTAL SALES IN FY2024

KUALA LUMPUR, Dec 12 (Bernama) -- Eco World Development Group Bhd (EcoWorld Malaysia) hits its highest net profit of RM303.54 million in the financial year ended Oct 31, 2024 (FY2024), a 60.3 per cent jump, from RM189.32 million a year ago due to higher profit margins.

Revenue stood at RM2.26 billion, slightly higher than RM2.23 billion previously, following higher contributions from active and newly launched phases in the period. 

In a filing with Bursa Malaysia, EcoWorld Malaysia said Malaysian operations recorded profit after tax (PAT) growth of 20.5 per cent to RM343.1 million in FY2024, mainly due to improvement in gross profit margins recorded by the group’s subsidiaries.

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For the fourth quarter of 2024 (4Q 2024), net profit soared to RM83.42 million from RM3.29 in the same quarter last year on the back of lower revenue of RM638.45 million from RM844.46 million previously.

The lower revenue was due to the sale of a 37.23-hectare parcel of industrial land in Eco Business Park II, having been included in 4Q 2023 upon its completion. 

Meanwhile, Eco World International Bhd's (EWI) recorded a lower loss this year as compared to FY2023, mainly due to improved results from its EcoWorld Ballymore joint venture, lower impairment loss on the amount owing by its EcoWorld London joint venture, and no finance cost as a result of full settlement of all borrowings during the 3Q 2023. 

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Separately, in a statement, EcoWorld Malaysia said it achieved RM4.07 billion in sales in FY2024, also the group’s highest ever, exceeding its RM3.5 billion sales target by 16 per cent. 

"The sales achieved, improved profits and increasing maturity of our projects have generated high net cash flows from operating activities of RM890 million in FY2024.

"This is 56 per cent above FY2023 and close to three times the FY2024 PAT. As a result, our gross and net gearing are at historic low levels of only 0.46 and 0.19 times, respectively, as at Oct 31, 2024," said president and chief executive officer Datuk Chang Khim Wah. 

He said EcoWorld Malaysia's future revenue remains high at RM3.96 billion, underpinning both earnings and cash flow visibility in the near and mid-term.

"Thanks to our strong balance sheet, we are well positioned to expand our landbank to broaden and deepen our market share and increase future pipelines of growth," Chang noted. 

He said in FY2024, projects in Iskandar Malaysia contributed 57 per cent (RM2.33 billion) of the group’s sales, followed by 31 per cent (RM1.27 billion) from the Klang Valley and 12 per cent (RM470 million) from Penang. 

Landed residential homes under the Eco Townships pillar made up 30 per cent of total sales, with RM1.22 billion recorded.

In addition, sales under the Eco Rise pillar recorded the highest growth in FY2024, with RM1.08 billion achieved, more than double the RM509 million recorded in FY2023. 

The commercial front of the Eco Hubs pillar contributed RM656 million in sales for FY2024, 27 per cent higher than FY2023. 

"Our industrial pillars, namely Eco Business Parks and Quantum, achieved total sales of RM1.11 billion, a six per cent higher than the previous record high achieved in FY2023, bolstered by strong data centre demand with two parcels of industrial land at our first Quantum Edge park being sold to Microsoft Payments (Malaysia) Sdn Bhd and Princeton Digital Group for a combined sales value of RM626 million," he said. 

Sustained demand for ready-built and customised built-to-suit industrial units, as well as smaller plots of industrial lands at four Eco Business Parks, collectively contributed another RM480 million to industrial sales in FY2024, he noted.

"We are also targeting to acquire more landbank to enable us to serve the continued high demand for industrial products from local, regional and global industrialists.

"Based on the strong momentum of inquiries as well as referrals that we have been receiving from our network of more than 1,400 businesses operating at our business parks, we believe growth prospects for both our Eco Business Parks and Quantum revenue pillars remain very bright," Chang said.

Following the performance, the group has declared a final dividend of two sen per share, bringing the total dividends declared for FY2024 to six sen per share.

-- BERNAMA