KUALA LUMPUR, Sept 17 — Eco World Development Group Bhd (EcoWorld) registered a slightly lower net profit of RM35.15 million in the third quarter ended July 31, 2021 (Q3FY2021) from RM35.83 million in the same period a year ago.
Revenue slipped to RM448.91 million from RM477.87 million.
In a filing to Bursa Malaysia today, the property developer said the main projects contributing to the revenue in the quarter were Eco Majestic, Eco Forest and Eco Sanctuary in the Klang Valley, Eco Botanic, Eco Botanic 2, Eco Spring, Eco Summer, Eco Business Park II, Eco Tropics and Eco Business Park III in Iskandar Malaysia and Eco Terraces in Penang.
“Despite the implementation of the movement control order (MCO) 3.0 in May 2021 followed by the Full MCO (FMCO) in June 2021, revenue was only slightly lower than Q3FY2020 by 6.1 per cent.
“This was mainly due to more completed or near completed properties being sold by the group in the current quarter, which enabled a higher percentage of revenue to be immediately recognised upon completion of sale of the units,” it said.
EcoWorld said total contributions from Malaysian joint-ventures — Eco Grandeur, Eco Business Park V, Eco Horizon, Eco Ardence and Bukit Bintang City Centre (BBCC), were 30.3 per cent lower in Q3FY2021 compared to Q3FY2020 as progress on construction sites slowed down due to restrictions coupled with the completion of Eco Horizon’s Phase 1 development in Q1 2021.
It said contributions from EcoWorld International Bhd was also lower in the current quarter due to the handover of fewer units sold to customers at Yarra One in Melbourne, Australia and a lower share of results from its United Kingdom joint venture as a result of a revision of project margins.
“The group and its Malaysian joint-ventures recorded sales of RM3.11 billion by August, enabling the group to surpass its full year sales target for FY2021 of RM2.88 billion,” it said.
It said many of its projects have matured with the bulk of the major infrastructure and lifestyle amenities already completed during the initial development phase, enabling higher net cashflow to be recouped from launches of each new phase within these projects.
“Along with substantial cash inflows being continually generated from high sales, particularly of completed and near-completed stocks, there has been a steady improvement in both gross and net gearing ratios to 0.63 times and 0.51 times respectively as at July 31,” it added. — Bernama