EcoWorld Development Net Profit Drops In Q3 2020
EcoWorld Development Group Bhd saw its net profit for the third quarter ended 31 July 2020 drop to RM13.8 million from RM50.48 million over the same period last year, following a RM65 million write-down of inventories.
Revenue also fell to RM477.87 million from RM521.37 million previously.
The group revealed that the movement control order (MCO) as well as the conditional and recovery MCOs impacted the group’s operations during the period under review.
“Physical construction works fully resumed only in mid-June 2020 due to additional safety protocols required to be implemented prior to recommencement. Nevertheless, catch-up efforts enabled work progress to be expedited,” it said.
A rapid conversion of bookings after the sales galleries’ reopening on 4 May enabled the group to secure RM1.25 billion in sales during the four months immediately following the MCO.
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Year to date, the group posted a net profit and revenue of RM68.71 million and RM1.36 billion, down from last year’s RM121.97 million and RM1.56 billion, respectively.
Total Malaysian sales of the group for FY2020 amounted to RM1.58 billion as at 31 August, while effective share of future revenue from locked-in sales, which include shares of future revenue at EcoWorld International, stood at RM4.42 billion.
EcoWorld Malaysia President and CEO Datuk Chang Khim Wah noted that there were several factors that contributed to results of the group, such as the prospects’ digital engagement during the MCO as well as the Home Ownership Campaign’s reintroduction in June.
“The group plans to supplement the reintroduced Home Ownership Campaign with its latest #YouBelong campaign which actively engages with its various target markets to convey the message that they belong in an EcoWorld Community. Accompanied by attractive promotional packages, it is designed to drive sales and accelerate the clearance of existing stocks to strengthen the group’s balance sheet,” he said.
EcoWorld Malaysia revealed plans to continue the strategic shift in mid-2019 to focus on the M40 group’s housing needs.
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