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,Commenting on the company’s performance, EcoWorld president and chief executive officer Datuk Chang Khim Wah said the largest percentage increase in sales since the company’s last reporting period came from its Iskandar Malaysia projects.

KUALA LUMPUR: Eco World Development Group Bhd (EcoWorld), which secured sales totalling RM2.17bil during the seven-month of its current financial year ending Oct 31, is on track to achieve its target of RM3.5bil.

For its second quarter ended April 30, revenue was higher by 20.6% from a year earlier, while gross profit during the period under review surged 54.8% year-on-year.

“Gross profit margin also improved to 23.1% in the second quarter of 2022 compared with 18% in the previous corresponding period, as measures implemented to increase efficiency and control costs enabled savings to be realised,” it said in a statement yesterday.

The company said its net profit increased by 8% in the second quarter of 2022, even after taking up its share of EcoWorld International Bhd’s loss.

“This was on the back of net profit contributed by its Malaysian operations which grew by 86.7% to RM61.2mil in the second quarter of 2022, versus RM32.8mil in the second quarter of 2021.”

As of April 30, EcoWorld said its cash and bank balances increased to RM904.4mil, while net borrowings and net gearing reduced to RM1.7bil and 0.36 time, respectively.

“Future revenue remains high at RM3.9bil as at May 31, giving good near-term earnings visibility.

“Premised on the improvement in the group’s cash position and balance sheet, EcoWorld has declared a two sen interim dividend in the current quarter,” it said.

Commenting on the company’s performance, EcoWorld president and chief executive officer Datuk Chang Khim Wah said the largest percentage increase in sales since the company’s last reporting period came from its Iskandar Malaysia projects.

“Sales almost doubled from RM315mil as at Feb 28, 2022 to RM617mil as at May 31, 2022.”

Chang pointed out that EcoWorld’s strategy to introduce more upgrader homes to complement several starter homes series launched in financial year 2021, began in the first quarter of 2022 in the Klang Valley and Penang.

“We are pleased that response has been very good for all the higher-end products launched this year.

“Thanks to the strong following, the EcoWorld brand continues to command in the upgrader and luxury homes segment across all three regions of the group’s operations.”

Chang noted that the opening of the country’s borders, particularly between Malaysia and Singapore, has helped boost demand in Iskandar Malaysia.

“More notably, it has had a significant impact on the group’s business park sales.

“As at May 31, 2022, total sales by the group’s four business parks stand at RM447mil, which is 93% of the full-year sales achieved by this segment in financial year 2021,” he added.

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