KUALA LUMPUR: Eco World Development Group Bhd's net profit eased 1.9 per cent year-on-year (YoY) in the third quarter (Q3) ended July 31, 2021, to RM35.15 million from RM35.83 million recorded previously.
The property developer stated in an exchange filing today that this was due to the reversal of certain over provisions for income tax in respect of prior years and deferred tax for the current quarter.
Its Q3 revenue decreased 6.1 per cent YoY to RM448.91 million from RM477.87 million mainly due to more completed or near-completed properties being sold during the period.
For the first nine month period, Eco World Development's net profit soared 59.2 per cent YoY to RM139.90 million from RM87.88 million, while revenue rose 1.47 per cent to RM1.38 billion from RM1.36 billion.
The company said the local construction sites should be able to operate at full capacity, enabling the company to catch up on work progress.
"The reopening of its sales galleries, subject to strict standard operating procedures (SOPs) and regular Covid-19 self-testing to ensure the safety of both visitors and staff members and enable EcoWorld Malaysia to proceed with plans for the launch of several new phases before the end of the year."
It added the company's projects have matured with the bulk of the major infrastructure and lifestyle amenities already completed during the initial development phase would enable higher net cash flow to be recouped from launches of each new phase within these projects.
"Moving ahead, Malaysia's rapid vaccination rate has placed the country on track to achieve the targeted 60 per cent immunisation rate by the end of September 2021 which should enable the reopening of nearly all economic sectors based on the government's National Recovery Plan."
The company said this development would provide a strong boost to both consumer and business confidence going forward, thus setting the stage for an economic rebound in 2022 which EcoWorld Malaysia is well-positioned to take advantage of.
Meanwhile, the company's overseas, the sales performance of EcoWorld International's projects in Australia and the United Kingdom (UK) continued to register improvement in the third quarter of 2021.
"With regards to construction, supply chain disruption and labour shortages are causing delays and driving cost pressures in the UK construction industry.
"However, the construction progress of the company's active projects in London are still largely on track with most remaining projects expected to commence handover in 2021 and the financial year ending October 31, 2022."