Friday 29 Mar 2024
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KUALA LUMPUR: Eco World Development Group Bhd (EcoWorld) posted a net profit of RM9.39 million or 0.41 sen per share in its third financial quarter ended July 31, 2015 (3QFY15) on the back of RM454.28 million revenue from ongoing projects like Eco Majestic, Eco Sky and Saujana Glenmarie in the Klang Valley.

As EcoWorld has changed its financial year end from Sept 30 to Oct 31, there are no comparative figures from a year earlier.

For the nine-month period (9MFY15), the group posted a net profit of RM24.26 million or 1.70 sen per share, with a revenue of RM1.03 billion, according to its filing with Bursa Malaysia yesterday.

EcoWorld said the group’s revenue and gross profit continued to grow at a steady rate since its acquisition of the development rights to eight projects, announced on April 25, 2014, became unconditional on Jan 8, 2015.  “This has enabled the group to record a revenue of RM1.03 billion and gross profit of RM243.2 million with gross margins averaging 24% for the current period to date,” it said.

Other ongoing projects which contributed to the revenue and gross profit achieved were: Eco Botanic, Eco Spring, Eco Summer and Eco Business Park 1 and EcoTropics in Iskandar Malaysia, Johor. 

It achieved RM1.02 billion sales in the third quarter of FY2015; RM673 million came from projects in the Klang Valley and RM311 million was contributed by projects in Iskandar Malaysia. As at Aug 31, 2015, year-to-date group sales was RM2.37 billion, with RM1.36 billion contributed by projects in the Klang Valley and RM964 million coming from Iskandar Malaysia, it said. 

EcoWorld said the remaining months of FY15 will be challenging. Nevertheless, it is confident of achieving its sales target of RM3 billion for the current financial year as it maintained there will still be demand for good quality products in the right locations.

“To achieve this, the group will continue to invest in innovative campaigns to further raise EcoWorld’s brand profile and actively promote its 10 ongoing projects. 

“Plans are also being finalised for the launch of several other upcoming projects which includes EcoMeadows on the Penang mainland and BBCC (Bukit Bintang City Centre) at the heart of Bukit Bintang in Kuala Lumpur to establish a solid foundation for future growth,” it noted.

 

This article first appeared in digitaledge Daily, on September 18, 2015.

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