By FARA AISYAH / Pic By MUHD AMIN NAHARUL
ECO World Development Group Bhd’s net profit for the third quarter ended July 31, 2018 (3Q18), increased by 47.64% year-on-year (YoY) to RM38.52 million from RM26.09 million achieved in the previous year’s corresponding period, as a result of higher profit contributed by its joint ventures (JVs).
The developer said in an exchange filing yesterday that out of the group’s four Malaysian JVs, three commenced revenue and profit recognition in 1Q18, followed by the final one in 3Q18.
“The group recognised a profit of RM15 million as its share of results of its Malaysian JVs in 3Q18 versus a loss of RM5.2 million in 3Q17,” the filing read.
The international JV, EcoWorld International Bhd, also recorded its maiden profit in 3Q18 following the commencement of delivery of completed property units at London City Island in the UK during the quarter.
However, Eco World’s revenue decreased by 35.77% YoY to RM490.05 millon in the three months, from RM762.92 million recorded in 3Q17 due to lower gross profit contribution by subsidiaries.
“As in 2Q18, revenue and gross profit in 3Q18 were lower than the corresponding quarter in the financial year ended Oct 31, 2017, because since 2Q17, the subsidiaries have been completing some major projects and have been delivering a significant number of completed property units to customers,” Eco World stated in the filing.
As at 3Q18, close to 9,000 units have been or are in the process of being delivered to customers.
Eco World chairman Tan Sri Liew Kee Sin said the prospects for EcoWorld Malaysia and EcoWorld International remain very bright going forward.
“As at Aug 31, 2018, EcoWorld Malaysia’s and EcoWorld International’s effective share of unbilled progress billings stand at RM6.16 billion and RM6 billion respectively.
“Our large number of ongoing projects, the increasing maturity of our Malaysian landbank, coupled with the growing pipeline of new projects secured by EcoWorld International, also provide us a strong foundation on which to anchor our growth ambitions,” he said.
As such, he added that the brand’s remaining gross development value to be developed amounts to approximately RM86.5 billion on a combined basis, which would assure the sustainability of the group’s local and international business model for many years to come.