ECOWORLD International Bhd reported a reduced net loss of RM12.3 million in the third quarter ended July 31, 2023 (Q323) compared to RM56.7 million in the same period last year.
The improvement was driven by factors such as foreign exchange gains from repayment of shareholder’s advances, lower finance costs due to debt settlement, decreased losses from Eco World London, and increased interest income from unit trusts and fixed deposits resulting from the repayment of shareholder’s advances.
However, revenue dropped by 9.62% to RM31.2 million due to discounts offered to expedite the sale of remaining units as part of the group’s monetisation strategy.
In the first nine months of 2023, the company recorded a net loss of RM47.7 million, a significant improvement from RM134.7 million in the same period last year, driven by higher interest income, reduced finance costs, and increased foreign exchange gains.
Despite the revenue declining by 34.75% to RM76.2 million, EcoWorld International achieved sales and reserves totaling RM1.16 billion in the first 10 months of FY23, putting it on track to meet its RM1.4 billion sales target for the fiscal year.
The company’s net cash balance stood at RM801 million as of July 31, and it declared a dividend of RM792 million, which was higher than initially estimated due to the appreciation of the pound sterling.
EcoWorld International aims to continue monetising its stocks to distribute excess cash back to shareholders and plans to declare a second tranche dividend of RM144 million in December 2023. – TMR