Eco World International posted a narrower net loss of RM8.19 million for the third quarter ended July 31, 2024 (3QFY2024), compared to RM12.3 million a year earlier on improved results from joint ventures with Ballymore Group, lower marketing expenses, and the absence of interest costs due to full loan repayment.

KUALA LUMPUR (Sept 18): Eco World International Bhd (KL:EWINT) has maintained its target of RM500 million dividend payouts for the financial years FY2024 and FY2025.

This as it posted a narrower net loss of RM8.19 million for the third quarter ended July 31, 2024 (3QFY2024), compared to RM12.3 million a year earlier.

The quarter also marked Eco World International's first with zero revenue, compared with RM31.17 million a year ago as it halted new launches and prioritised sales of completed inventory.

Quarterly losses per share stood at 0.34 sen per share, compared with 0.51 sen losses per share in 3QFY2023. No dividend was proposed for the quarter under review.

The reduced losses were attributed to improved results from joint ventures with Ballymore Group, lower marketing expenses, and the absence of interest costs due to full loan repayment in the previous year.

For the nine-month period (9MFY2024), the group's net loss was RM22.14 million, down from RM47.68 million in 9MFY2023, with revenue falling 58.26% to RM31.82 million from RM76.24 million.

Sales in the first 10 months stood at RM501 million, and its share of value in unsold completed stocks has been reduced to RM240 million, the group said.

Embassy Gardens contributed the highest sales value at RM224 million, followed by Wardian (RM146 million) and Millbrook Park with RM55 million, said the group, whose real estate projects are primarily in the UK and Australia.

In a statement Eco World International president and CEO Datuk Teow Leong Seng said the group is on the lookout for better market conditions before undertaking new projects, citing lagging real estate price recovery in London compared with the rise in construction costs.

"As the current high interest rate increases the rental yield expectation of these commercial units, the group is focusing on leasing them to commercial tenants," Teow said.

"The intention is to sell these units to investors once the expected rental yields return to more favourable levels.

"Meanwhile, the remaining residential units are being actively marketed and are expected to be the primary source of cash flow for the group in the near term," he said.

Of the RM500 million payout committed for the two financial years, Eco World International has already paid out RM144 million or six sen per share in July 2024.

As of July 31, Eco World International's total net cash balance stood at RM271 million, including net cash balances from joint ventures.

"The group will continue to assess the viability of its remaining sites and will proceed with new launches only when market conditions are more conducive and expected returns can be projected with greater confidence," Teow said.

Shares in Eco World International closed half a sen or 1.67% higher at 30.5 sen on Wednesday, valuing the group at RM719.8 million.