KUALA LUMPUR: Eco World Development Group Bhd's posted RM1.32 billion sales in the second quarter (Q2) ended April 30 2021, almost doubling the sales of RM706 million achieved in Q1.
In a statement today, the property developer said it had reached RM2.53 billion as of May 31, 2021, a 10 per cent higher than the RM2.30 billion sales achieved in the financial year ended October 31, 2020 (FY20).
Eco World said it had reached 88 per cent of its full-year FY21 sales target of RM2.87 billion.
It added that future revenue from Malaysian projects had increased substantially from RM2.99 billion as at February 28 this year to RM3.77 billion as at May 31.
The group's net profit in Q2 jumped 172.2 per cent to RM42.32 million from RM15.55 million due to the increase in its joint-ventures and higher sales during the period.
Its Q2 revenue increased 21.7 per cent to RM420.45 million from RM345.40 million on the back of higher sales achieved during the quarter.
President and chief executive officer Datuk Chang Khim Wah said the company was encouraged by the fact that the recovery had been broad-based with its projects in every single region performing well.
Chang attributed the strong rebound to strong take-ups on all the new projects and products launched in Q2 namely Eco Botanic 2 in Iskandar Malaysia, Co-Home at Eco Horizon and Eco Grandeur and the second phase of ErgoHomes & Garden Homes at Eco Forest.
"We have managed to secure 88 per cent of our sales target within the first-seven months of the financial year. This is especially so in the light of the ongoing Full Movement Control Order (FMCO) imposed by the government to combat the Covid-19 pandemic, which we are fully supportive of," said Chang.
He said the group's future revenue position as at May 31, 2021 stood at RM4.21 billion which would provide the company with both near-term cashflow as well as earnings visibility.
Chang said both consumer and business confidence would recover strongly once the FMCO was lifted and travelling restrictions were relaxed.
"When that happens, the positive sales momentum which Eco World has been able to sustain over the last four consecutive quarters, notwithstanding various repeated MCO restrictions, will certainly receive a further boost leading to improved prospects for the group going forward. "
Meanwhile, Eco World International Bhd (EcoWorld International) recorded RM283 million sales in Q2 followed by a further RM117 million in May, bringing the year-to-date value of sales contracts exchanged to RM753 million.
Including reserves of RM259 million, this adds up to total sales of RM1.01 billion as at May 31, 2021.
The group's Q2 saw a lower net profit of RM11.30 million from RM20.5 million due to lesser number of units sold to customers, while revenue increased per cent to RM107.55 million from RM113,000.
President and chief executive officer Datuk Teow Leong Seng said the group had witnessed a recovery in local demand across the United Kingdom and Australia property markets in Q2.
"Sales of EcoWorld London, our joint-venture that focuses on the outer zones of London, has seen a substantial increase in sales (from £9 million to £24 million) in the second quarter of FY21 compared to the same quarter in FY20.
"In Australia, our West Village project has also seen a marked increase in sales (from A$1 million to A$15 million) over the same period," he said.
Teo said the sales performance would improve in the coming quarters as rollout of vaccination programmes continued in many of its global customer markets.
"This should enable physical marketing activities to be carried out once again in international locations. The return of office workers should also lift demand for our projects that are located close to major employment centres," he said, adding that this included London City Island and Wardian London, which are near Canary Wharf.
He said the group was on track to achieve its FY21 sales target of RM2.2 billion by the end of the financial year.