Eco World International achieves RM58m sales in first four months of FY2025, new launches on hold

• On its outlook, EWI noted that while London faces a housing undersupply, high interest rates are slowing sales and pressuring prices. The group is balancing faster unit sales with strategic pricing to safeguard shareholder value.

KUALA LUMPUR (March 19): Eco World International Bhd (KL:EWINT) achieved RM58 million in property sales in the first four months of the financial year ending Oct 31, 2025 (FY2025). However, the developer reported zero revenue in the first quarter ended Jan 31, 2025 (1QFY2025) as sales abroad do not immediately translate into revenue.

In a bourse filing on Wednesday, the company said current market conditions make it unsuitable to pursue new launches or acquisitions, and that all planned launches are on hold until conditions, cost stability and returns improve.

EWI, which primarily develops real estate in the UK and Australia, posted a net loss of RM3.75 million for 1QFY2025, compared to a net profit of RM182,000 a year earlier.

This was on a lack of sales, lower foreign exchange gains, and reduced profits from its joint venture with Ballymore due to a weaker British pound.

The company said lower impairment losses from EcoWorld London and reduced administrative expenses from lower staff costs amid declining operational activities helped keep losses in check.

EWI recorded no revenue in the quarter under review. All residential units in its Australian projects, West Village and Yarra One, were sold in FY2024, leaving only one commercial unit.

Meanwhile, its joint ventures recorded RM54.96 million in revenue for the quarter, down from RM225.64 million in the previous corresponding quarter, with EWI’s effective share falling to RM39.25 million from RM164.96 million.

The decline was mainly due to lower sales as both joint ventures sold off their completed inventories, leading to reduced profits.

EWI achieved RM58 million in sales, with an additional RM35 million in reserves, bringing total sales year-to-date to RM93 million.

As of Jan 31, 2025, the group’s total cash balance, including its share of cash from joint ventures, stood at RM191 million.

On its outlook, EWI noted that while London faces a housing undersupply, high interest rates are slowing sales and pressuring prices. The group is balancing faster unit sales with strategic pricing to safeguard shareholder value.

Shares in EWI closed half a sen or 2.1% lower at 23.5 sen on Wednesday, giving the company a market capitalisation of RM564 million.

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