Eco World Malaysia’s Q2 profit hit by higher expenses

27 Jun 2019 / 13:31 H.

PETALING JAYA: Eco World Development Group Bhd’s (Eco World Malaysia) net profit for the second quarter ended April 30, 2019 fell 4.54% to RM41.17 million from RM43.13 million a year ago due to higher administrative and selling and marketing expenses.

In a filing with Bursa Malaysia, the group said that the higher expenses includes additional depreciation following the completion of the Sanctuary Mall this year.

It also incurred higher expenses in relation to the concurrent launch of the Home Ownership Programme with EcoWorld (HOPE) and Home Ownership Campaign (HOC) initiated by the government.

Revenue for the quarter fell 1.19% to RM543.18 million from RM549.71 million a year ago. Revenue recorded by its Malaysian joint ventures namely Eco Grandeur, Eco Horizon, Eco Ardence and Bukit Bintang City Centre amounted to RM317.2 million, of which the company’s effective share amounted to RM166 million.

For the six-month period ended April 30, 2019, Eco World Malaysia’s net profit rose 35.14% to RM71.49 million from RM52.90 million, while revenue fell 3.23% to RM1.03 billion from RM1.07 billion a year ago.

Eco World Malaysia achieved RM1.026 billion in sales in the first seven months of the financial year ending Oct 31, 2019 (FY19) after a slow start, with only RM230 million in the first four months. The improvement in sales was due to the HOC as well as the company’s Help2Own and Stay2Own solutions under its HOPE campaign.

Based on the current sales momentum and its various initiatives, the group is confident of a better performance in the second half of FY19, on the back of its effective stake in the future revenue of properties sold by its subsidiaries and joint ventures amounting to RM6.09 billion as at May 31, 2019.

At the midday break, Eco World Malaysia’s share price declined 1.2% to 83.5 sen on 479,200 shares done.

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