Lower 4Q21 net profit of RM42.8m for Eco World


ECO World Development Group Bhd’s net profit for the fourth quarter ended Oct 31, 2021 (4Q21), dipped to RM42.84 million from RM72.27 million in 4Q20.

Revenue rose slightly to RM666.1 million compared to RM635.47 million last year mainly due to the realisation of cost savings for certain completed phases during the quarter.

According to its filing to Bursa Malaysia yesterday, Eco World registered an earnings per share (EPS) of 1.45 sen in the current quarter against EPS 2.45 sen in 4Q20.

The group has declared a second interim dividend of two sen per share, while payable will be determined later.

For year-to-date, Eco World’s profit jumped to RM182.74 million in the current period from RM160.15 million the previous year.

Meanwhile, its revenue saw a slight increase to RM2.04 billion from RM2 billion last year.

Eco World’s Malaysian operations recorded sales of RM3.52 billion in the financial year of 2021 (FY21), which is 53% higher than FY20 and 23% higher than the target of RM2.88 billion set for the year.

“Sales achieved in FY21 is the highest since FY17. This is a testament to the group’s tenacity and agility in overcoming the challenges of the pandemic and in reinventing its business model,” stated Eco World.

The group noted that its digital transformation has resulted in significantly increased lead generation, faster sales conversion and highly efficient billing processes which enable accelerated cash recovery from sales and reduce overhead costs.

For FY22, the group plans to expand its brand’s product mix to offer a wide range of residential, commercial and industrial products that meet and anticipate the specific needs of each target market.

It will also reach out beyond its traditional customer base to gain a multigenerational and multi-ethnic following the group’s landed and high-rise homes spread throughout the Klang Valley, Johor (Iskandar Malaysia) and Penang.

Additionally, Eco World will engage closely with business owners, entrepreneurs and investors to understand their needs and develop innovative shops, offices, retail spaces and business parks that will support the growth of their businesses.

The group has set a sales target of RM3.5 billion for its Malaysian operations in FY22