EcoWorld International reported its financial performance for 1Q 2024 recording a net profit of RM182k compared to loss of RM30.8 million in 1Q 2023. This was for a rise in revenue to RM31 million this quarter compare to RM22 million registered in the same quarter 2023.
The group said the better results was mainly due to foreign exchange gains from appreciation of British Pound (GBP) against Ringgit Malaysia (RM) on repayment of advances by EcoWorld-Ballymore and conversion of GBP denominated bank balances in 1Q 2024 as opposed to foreign exchange losses recorded in 1Q 2023; lower finance costs as a result of full settlement of all borrowings in 2023.
- The developer achieved RM243 million sales exchanges plus reserves of RM203 million adding up to a total of RM446 million for the first four months of FY2023. Embassy Gardens, which brought in RM105 million sales, was the biggest contributor, followed by Wardian (RM75 million), and Yarra One (RM20 million). Following the distribution of RM144 million dividend during the first quarter of FY2024, the Group still has a net cash balance of RM211 million as at 31 Jan 2024.
“The Group continues to make progress with the monetisation of inventories. As at 29 February 2024, we have approximately RM650 million of completed and nearly-completed stocks that are available for sale, of which the Group’s effective share is approximately RM500 million. Sales of completed stocks are estimated to generate excess cash up to RM500 million for the Group over 2024 and 2025,” said Dato’ Teow Leong Seng, President & CEO of EcoWorld International.
“The Board intends to distribute the excess cash to shareholders and we are seeking for approval in our Annual General Meeting next week to undertake a second capital reduction exercise to enable such distribution,” he continued.
