EcoWorld International achieves RM549 mil sales and reserves in 10 months of FY2024

• Embassy Gardens, which brought in RM224 million sales, was the biggest contributor, followed by Wardian (RM146 million), and Millbrook Park (RM55 million).

KUALA LUMPUR (Sept 18): EcoWorld International Bhd achieved RM501 million sales exchanges plus reserves of RM48 million adding up to a total of RM549 million in 10 months of FY2024.

Embassy Gardens, which brought in RM224 million sales, was the biggest contributor, followed by Wardian (RM146 million), and Millbrook Park (RM55 million), according to a media release of the group’s results announcement for 3Q2024 today.

Including the net cash balances at joint ventures, the group has a total net cash balance of RM271 million as at July 31, 2024.

EcoWorld International also recorded a narrower loss before tax of RM8.2 million in 3Q2024 compared to loss before tax of RM10.1 million in 3Q 2023 mainly due to improved share of results in joint ventures arising from sales of completed units by EcoWorldBallymore; lower marketing expenses as the projects in Australia are almost fully sold; and absence of interest costs due to full repayment of loans in FY2023.

“As at Aug 31, 2024, we have reduced the value of unsold completed stocks to about RM330 million of which the group’s effective share is approximately RM240 million. Roughly one-third of the unsold stocks by value are commercial units that are primarily marketed to investors,” said EcoWorld International president & CEO, Datuk Teow Leong Seng. (pictured)

“As the current high interest rate increases the rental yield expectation of these commercial units, the group is focusing on leasing them to commercial tenants. The intention is to sell these units to investors once the expected rental yields return to more favourable levels. Meanwhile, the remaining residential units are being actively marketed and are expected to be the primary source of cash flow for the group in the near term,” Teow explained.

He added that the group’s “target to generate excess cash of up to RM500 million for distributions to shareholders over 2024 and 2025 remains unchanged — the first tranche amounting to RM144 million has already been paid in July 2024”.

“Given the uncertainty around the profitability of new developments, the group is prioritising the sale of completed inventory and distributing surplus cash to shareholders. The group will continue to assess the viability of its remaining sites and will proceed with new launches only when market conditions are more conducive and expected returns can be projected with greater confidence,” Teow said.

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