Eco World Development Group Berhad announced its results for 1Q 2023 reporting key financial highlights including the recording of RM1.35 billion in sales in the 1st four months of FY2023 which is higher than the RM1.28 billion achieved in the same period of FY2022 and it represents 38.5% of the Group’s FY2023 sales target of RM3.5 billion.
However, the group’s revenue and share of results from Malaysian joint ventures for 1Q 2023 were 9.1% and 18.9% lower respectively than 1Q 2022 mainly due to: lower levels of work progress and site activities in 1Q 2023 due to the earlier Chinese New Year festive period in January this year. Revenue stood at RM484.7 million versus RM533.4 million registered in the preceding year’s quarter.
Despite lower revenue, gross profit in 1Q 2023 was higher than 1Q 2022 by 10.4% and gross profit margin improved to 26.1% in 1Q 2023 vs 21.4% in 1Q 2022 due to cost savings realised on completed phases. This contributed to a lower Profit After Tax (PAT) of RM57 million against RM63 million achieved in the previous year’s quarter.
The Eco Business Parks (EBP) industrial segment recorded the highest sales, contributing RM616 million, making up 46% of total year-to-date sales achieved, boosted by strong demand from local and international industrialists. Sales of residential homes totalled RM548 million in the 1st four months of FY2023 with a sustained interest in EcoWorld Malaysia’s upgrader products
EcoWorld Malaysia’s future revenue increased to RM4.03 billion as of 28 February 2023, providing clear cash flow and earnings visibility.
Commenting on the latest results, Dato Chang Khim Wah President CEO, “The Group’s highly diversified product range, which now includes sizeable industrial and commercial portfolios to add to our large residential base, enabled us to achieve RM1.35 billion sales in the first our months of FY2023. Our business park segment was off to an especially strong start following a
strategic sale to the Haitian Group of 92 acres of industrial lands at EBP II in Iskandar Malaysia,”
“Going forward we have many exciting new launches lined up. 2023 is EcoWorld’s 10th anniversary and as part of the “We’re 10” celebrations we have further refined many of our most successful products and concepts. First up is our popular duduk apartments – these compact homes, initially targeting younger homeowners in the Klang Valley, have been reconceptualised for every generation and will soon be available in Iskandar Malaysia and Penang.
