EcoWorld International recorded a loss before tax of RM30.36 million in 1Q 2023 vs an LBT of RM12.74 million in 1Q 2022, mainly due to foreign exchange losses of RM25.97 million in the current quarter. The forex losses arose from the weakening of the British Pound against Ringgit Malaysia. Sales revenue also dropped significantly compared to the same quarter in the preceding year, from RM49 million to RM22 million
Subsequent to 1Q 2023, the GBP has appreciated. Should the GBP remain at the current level or continue to strengthen against RM, the foreign exchange losses recognized in 1Q 2023 will be fully or partially reversed in later quarters is said.
Moving ahead, the group’s focus on selling completed stocks is achieving the intended result of accelerating cash generation. Sales remain steady in the first 4 months of FY2023 with Embassy Gardens contributing RM125 million, followed by Wardian, London City Island and Oxbow bringing in RM67 million, RM63 million, and RM33 million respectively,” said Dato’ Teow Leong Seng, President & CEO of EcoWorld International.
“Despite homebuyers becoming more cautious following increases in interest rates, shortage of homes continues to provide support for housing demand. We plan to sustain our sales momentum by offering attractive incentive packages to buyers and tapping overseas demand through international marketing events. This will enable significant additional cashflow to be generated for the Group in the upcoming quarters,” Teow highlighted.
“In Australia, our development plan for the Macquarie Park site has received approval from the relevant authorities in February 2023. However, given elevated uncertainties in the current property market we are reviewing our options for the site,” he mentioned.
