Eco World Q4 net profit up 14.8%

PETALING JAYA: Eco World Development Group Bhd (EcoWorld Malaysia) posted a 14.8% rise in net profit to RM33.71 million for the fourth quarter ended Oct 31, 2017 against RM29.35 million in the previous corresponding quarter, mainly due to higher revenue and lower selling and marketing expenses.
Revenue was up by 21.3% to RM899 million, compared with RM741 million in the same period last year.
The property developer said in a statement that it has achieved RM4 billion of sales for the 12 months period, mainly attributed to its projects in Klang Valley, Iskandar Malaysia and Penang.
EcoWorld Malaysia president and CEO Datuk Chang Khim Wah said the group achieved RM1.83 billion sales in its final quarter, which is around 46% of its full year target, contributed by its projects in Klang Valley and Penang.
Going forward, Chang said the group’s sizeable and increasingly matured land bank in Malaysia is expected to contribute positively to its future prospects.
“Along with the high level of unbilled sales attributable to the group as at Oct 31, 2017 of RM6.4 billion, this should set the group on a steady growth path and by FY19, EcoWorld Malaysia is targeting to be in a position to commence payment of dividends to its shareholders,” he added.
For the full-year, its net profit surged 62% to RM209.65 million, against RM129.28 million a year ago, on the back of 14.8% rise in revenue from RM2.5 billion to RM2.9 billion.
Meanwhile, Eco World International Bhd (EWI) saw a narrowed net loss of RM32.5 million for the fourth quarter ended Oct 31, 2017, from RM55 million in the same quarter last year, mainly due to savings on finance cost and unrealised foreign exchange differences as a result of an appreciation in the exchange rate of the British pound in the current quarter.
Its revenue came in at RM27,000, 85.2% lower than the RM183,000 achieved in the previous corresponding period.
For the full-year, EWI’s net loss narrowed from RM220 million to RM87.6 million, with its revenue decreasing 28.5% from RM683,000 to RM488,000.
The group said it has achieved sales of RM2 billion during the 12 months period, contributed by its projects in London and Australia.
For FY18, the group targets to achieve RM2 billion sales (excluding sales from its new joint venture with Be Living).