EcoWorld’s 4Q net profit down 43%, achieves RM3.5b annual sales

KUALA LUMPUR (Dec 16): Eco World Development Bhd (EcoWorld)’s net profit dropped 42.72% to RM42.84 million for the fourth quarter ended Oct 31, 2021 (4QFY21), from RM72.27 million a year ago, on lower contribution from its Malaysian joint ventures (JVs) and its international arm Eco World International Bhd (EWI) due to the lockdown.

The group’s share of the results from its Malaysian JVs came from Eco Grandeur, Eco Business Park V, Eco Horizon, Eco Ardence and Bukit Bintang City Centre (BBCC).

Earnings per share fell to 1.45 sen from 2.45 sen in the previous year, the group said in a bourse filing.

Quarterly revenue was up by 4.81% to RM666.05 million from RM635.47 million previously, thanks to higher sales of products.

Compared to the immediate preceding quarter (3QFY21), EcoWorld’s net profit was 21.88% higher compared to RM35.15 million on the back of higher revenue and gross profit, as revenue climbed 48.37% from RM448.91 million.

The group has declared a second interim dividend of two sen per share, bringing the total payout for FY21 to four sen.

For the full financial year, the group posted a net profit of RM182.74 million, up 14.1% compared with RM160.15 million in FY20, while revenue increased 2.31% to RM2.04 billion from RM2 billion.

EcoWorld said it achieved sales of RM3.522 billion in FY21, which is 23% higher than the target of RM2.875 billion set for the year.

“All three regions (Klang Valley, Iskandar Malaysia and Penang) have substantially outperformed the targets set and strong increases were recorded across our residential, commercial and industrial portfolios,” said the group’s president and CEO Datuk Chang Khim Wah.

He said that based on the results achieved and the group’s improving balance sheet position, EcoWorld has set a sales target of RM3.5 billion for FY22.

“We have had a good start with RM376 million sales achieved in November 2021, the first month of FY22.

“Our focus in this new financial year is on enhancing value for our shareholders with the aim of further improving profitability by introducing products with higher margins commensurate with the increasing maturity of our landbank and projects,” he said in a statement.

EcoWorld shares were up 1.78% or 1.5 sen at 86 sen, valuing the group at RM2.52 billion. The stock has risen 79% year-to-date.

Edited by S Kanagaraju

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