Eco World’s Q2 profit slips on lower margins

PETALING JAYA: Eco World Group Development Bhd (EW Bhd) posted a 2.9% drop in net profit to RM33.68 million for the second quarter ended April 30, 2017 against RM34.68 million in the previous corresponding period, mainly due to lower gross profit margins.

Revenue was up by 9% from RM614.6 million to RM670.02 million.

The property developer said in a statement that it has achieved RM1.71 billion of sales for the first seven months of the current financial year, contributed by its projects in the Klang Valley, Iskandar Malaysia and Penang.

EW Bhd president and CEO Datuk Chang Khim Wah said the second half of FY17 will see the launch of three new projects namely Eco Forest and Eco Business Park V in the Klang Valley as well as Eco Horizon in Penang, which are expected to contribute towards the group’s sales in the fourth quarter of FY17.

“Based on sales secured to date and the plans which are underway for the next two quarters, we are confident that the goup is well-positioned to achieve our sales target of RM4 billion sales in Malaysia for FY17,” Chang added.

EW Bhd’s first-half net profit more than doubled from RM55.35 million to RM149.85 million on the back of a 17.1% rise in revenue from RM1.08 billion to RM1.26 billion.

Meanwhile, Eco World International Bhd (EWI) saw a narrowed net loss of RM24.82 million for the second quarter ended April 30, 2017 from RM60.82 million in the same quarter last year, dragged down by unrealised foreign exchange differences as a result of an appreciation in exchange rate of the British Pound in the current quarter.

Its revenue came in at RM37,000, 72.6% lower than the RM135,000 achieved in the previous corresponding period.

For the first half of the year, EWI’s net loss narrowed from RM118.63 million to RM30.88 million, with its revenue jumping 71.7% from RM212,000 to RM364,000.

The group said it has achieved sales of RM1.05 billion during the first half of FY17, against its sales target of RM2.5 billion for FY17.