KUALA LUMPUR: Eco World Development Group Bhd’s (Eco World) net profit in the third quarter ended July 31, 2017 (Q3), plunged 41.45 per cent to RM26.10 million from RM44.58 million previously, attributed to finance cost of new terms loans taken, advances to joint venture as well as share of initial losses incurred by joint-venture companies.
In an exchange filing today, the property developer’s revenue in Q3 increased 4.89 per cent to RM762.92 million from RM727.34 million in the same period last year due to higher percentage of completion compounded by a higher number of sold units.
Meanwhile, Eco World group has achieved 40 per cent higher in sales totalling RM772 million in Q3, from Malaysian projects under the Eco World Brand compared to RM552 million recorded in Q2 this year.
Eco World noted up to August 2017, the group sales increased 9 per cent amounted to RM2.39 billion from RM2.02 billion recorded in the same period last year.
EcoWorld Malaysia president and chief executive officer Datuk Chang Khim Wah said the company was busy handing over the first phases of properties sold in the first half this year.
“To date we have delivered close to 4,500 units to our purchasers. We are delighted that the strong engagement with customers achieved during the handover process have resulted in positive word-of-mouth and increased referrals which boosted sales especially for Eco Majestic in Semenyih and Eco Spring, Eco Summer and Eco Tropics in Iskandar Malaysia,” he said in a statement.
Meanwhile, EcoWorld International president and chief executive officer Datuk Teow Leong Seng said the company’s United Kingdom projects have continued to see steady sales and there are anecdotal signs of recovery in demand not just for new home sales but also for office space, despite ongoing uncertainties surrounding Brexit.
“This validates our confidence that London will retain its status as one of the world’s foremost global cities and a leading economic, financial, educational and cultural destination,” he added.
For the remaining two months of the financial year ending October 31, 2017 (FY17), the group will be working towards achieving its sales target of RM4 billion from Malaysian projects and RM2.5 billion from international projects.