KUALA LUMPUR (Dec 12): Eco World Development Group Bhd's, or EcoWorld Development, (KL:ECOWLD) posted a net profit of RM83.42 million for the fourth financial quarter ended Oct 31, 2024 (Q4FY2024), a big leap compared with RM3.29 million in the preceding financial year.

The property developer attributed the improved earnings performance to strong 31.5% growth in profit after tax generated by home operations and lower impairment in the carrying values of its investment in EcoWorld International Bhd (EWI) recognised in the quarter under review.

Quarterly revenue, however, came in lower at RM638.45 million, down 24.4% against RM844.46 million a year ago. Revenue in the previous corresponding quarter was then boosted by the sale of a 92-acre parcel of industrial land in Eco Business Park II, its bourse filing said.

Earnings per share (EPS) increased to 2.83 sen for the quarter from 0.11 sen a year earlier.

The group declared a dividend of two sen per share for 4QFY2024. This brings its dividend payout for the financial year ended Oct 31, 2024 (FY2024) to six sen per share, matching the amount paid in FY2023.

EWI’s loss was lower in 4QFY2024 compared with the previous corresponding quarter due to lower impairment loss on the amount owed by its EcoWorld London joint venture.

The improvement was partly offset by lower reversal of impairment on investment in its EcoWorld Ballymore joint venture and lower foreign exchange gain.

EcoWorld Development noted in the bourse filing that EWI ceased to be a joint venture on May 10, following the conclusion of the shareholders’ agreement that it entered into between GuocoLand Limited, amongst others. Subsequently, EcoWorld Development has re-assessed the investment in EWI as an associate company of the group.

Home operation achieves record high profit in FY2024

EcoWorld Development’s net profit for FY2024 soared 60.3% to RM303.54 million against RM189.32 million in the previous year. Annual revenue grew 1.41% to RM2.26 billion from RM2.23 billion.

In a separate statement, the group noted that its Malaysian operations contributed a PAT of RM343.1 million for FY2024 — a record high for EcoWorld Malaysia, mainly due to improvement in gross profit margins of its subsidiaries.

Meanwhile, net cash generated from operating activities in FY2024 amounted to RM890 million, 56% higher compared with FY2023 and close to three times the group’s FY2024 PAT, while cash balances (including deposits and short-term funds) remained high at RM1.36 billion.

Its borrowings amounted to RM2.258 billion, including long -term debts of RM1.763 billion as at Oct 30.

Sales under the Eco Rise pillar recorded the highest growth in FY2024 with RM1.08 billion achieved, more than double that of RM509 million recorded in FY2023.

Meanwhile, the Eco Hubs pillar, which focuses on commercial properties, sales increased by 27% year-on-year to RM656 million, driven by the vibrant communities built around these developments.

The industrial segment, encompassing Eco Business Parks and Quantum, achieved RM1.11 billion in total sales, a 6% increase from the previous record.

“Thanks to our strong balance sheet, we are well positioned to expand our landbank to broaden and deepen our market share and increase future pipelines of growth,” said president and CEO, Datuk Chang Khim Wah.

“We are also targeting to acquire more landbank to enable us to serve the continued high demand for industrial products from local, regional and global industrialists,” adding that the strong momentum of inquiries that the group has been receiving from its network of more than 1,400 businesses operating at business parks, will bring strong growth prospects.

EcoWorld’s share price closed at RM2 on Thursday, valuing the property developer at RM5.89 billion. Year to date, the stock has rallied 91%.