KUALA LUMPUR, Dec 17 — Eco World Development Group Bhd’s (EcoWorld Malaysia) net profit slashed by 34 per cent to RM135.17 million in the financial year 2020 (FY2020) from RM203.42 million last year.
Revenue was lower at about RM2 billion from RM2.46 billion, it said in a filing with Bursa Malaysia today.
As for the fourth quarter (Q4) of 2020, net profit declined to RM66.46 million from RM81.46 million, while revenue dropped to RM635.47 million versus RM906.54 million.
EcoWorld Malaysia said this is because Q4 2019 was an especially strong quarter with revenue 96 per cent higher than in 4Q 2018.
In fact, FY2019 was the year in which the group achieved its highest number of completion and handover of properties sold since its inception.
The main projects, which contributed to revenue and gross profit in Q4 2020 were Eco Majestic, Eco Forest, Eco Sky and Eco Sanctuary in the Klang Valley, Eco Spring, Eco Summer and Eco Tropics in Iskandar Malaysia, and Eco Meadows in Penang.
Meanwhile, the Malaysian joint-venture projects recorded a revenue of RM522.5 million in Q4 2020.
On the international front, share of results from EcoWorld International Bhd was lower in Q4 2020 compared to 4Q 2019 due to the lower number of sold units handed over to customers in the quarter.
The company recorded its highest quarterly sales of more than RM1 billion in Q4 2020 on the back of a resurgence in buying interest experienced across its various projects following a relaxation of movement control order restrictions.
Sales in second half 2020 totalled almost RM2 billion or 85 per cent of full year sales.
“This enabled EcoWorld Malaysia to exceed its RM2 billion sales target for FY2020 by a margin of 15 per cent amounting to RM2.3 billion, despite continuing Covid-19 uncertainties,” it noted.
In addition, EcoWorld International recorded its strongest quarterly sales of RM448 million in 4Q 2020, bringing full-year sales to RM1.4 billion.
For FY2021, EcoWorld Malaysia targets to achieve sales of RM2.875 billion, which is 25 per cent higher than the actual RM2.3 billion sales achieved in FY2020.
“Management is confident that the strategic plans it has put in place to focus on the larger and more resilient M40, as well as Gen-Y and Gen-Z customer groups and actively promote its business parks to local and foreign industrialists, will contribute towards the attainment of the target set.
“In addition, the proactive steps taken in FY2020 to reduce and reset the group’s cost structure, as well as further digitalise every aspect of EcoWorld Malaysia’s operations for increased effectiveness and efficiency, will help counteract the impact of a soft property market and preserve cashflow and profits,” it added. — Bernama
