KUALA LUMPUR: Eco World Development Group Bhd (EcoWorld Malaysia) reported its highest-ever net profit of RM303.54 million for the financial year ending October 31, 2024, marking a significant 60.3 percent increase from RM189.32 million in the prior year, driven by improved profit margins.

According to BERNAMA News Agency, the company’s revenue reached RM2.26 billion, a slight increase from RM2.23 billion the previous year, attributed to higher contributions from ongoing and newly launched projects. The Malaysian operations of EcoWorld Malaysia saw a 20.5 percent growth in profit after tax (PAT), totaling RM343.1 million, largely due to enhanced gross profit margins within its subsidiaries.

In the fourth quarter of 2024, EcoWorld Malaysia’s net profit surged to RM83.42 million, up from RM3.29 million in the same quarter the previous year, despite a decline in revenue to RM638.45 million from RM844.46 million. The decrease in revenue was attributed to the one-time sale of a 37.23-hectare industrial land parc
el in Eco Business Park II, recorded in the fourth quarter of 2023 upon its completion.

Eco World International Bhd (EWI) reported a reduced loss for the year compared to FY2023, benefiting from better results from its EcoWorld Ballymore joint venture, lower impairment losses related to its EcoWorld London joint venture, and the absence of finance costs following the full repayment of all borrowings during the third quarter of 2023.

EcoWorld Malaysia also announced achieving RM4.07 billion in sales for FY2024, surpassing its sales target of RM3.5 billion by 16 percent. This accomplishment resulted in high net cash flows of RM890 million from operating activities, a 56 percent increase over FY2023, and nearly three times the FY2024 PAT. The group’s financial leverage reached historic lows with gross and net gearing ratios of 0.46 and 0.19 times, respectively, as of October 31, 2024.

President and CEO Datuk Chang Khim Wah highlighted that future revenue remains strong at RM3.96 billion, supporting earnings a
nd cash flow visibility. He emphasized the group’s readiness to expand its landbank, aiming to enhance market share and future growth pipelines.

In FY2024, projects in Iskandar Malaysia accounted for 57 percent (RM2.33 billion) of sales, followed by the Klang Valley at 31 percent (RM1.27 billion), and Penang at 12 percent (RM470 million). Landed residential homes under the Eco Townships segment contributed 30 percent of total sales, amounting to RM1.22 billion.

The Eco Rise segment recorded the highest growth, with sales doubling to RM1.08 billion from RM509 million in FY2023. Sales from the Eco Hubs commercial segment increased by 27 percent to RM656 million. The industrial segments, Eco Business Parks and Quantum, achieved RM1.11 billion in sales, a six percent rise from the previous record, fueled by strong demand for data centers and industrial land sales.

The group’s strong industrial sales were bolstered by the sale of two industrial land parcels at Quantum Edge park to Microsoft Payments (Malaysia)
Sdn Bhd and Princeton Digital Group for RM626 million. Additionally, sales of ready-built and customized industrial units at four Eco Business Parks contributed RM480 million.

EcoWorld Malaysia aims to acquire more landbank to meet the ongoing high demand for industrial products, with growth prospects for its Eco Business Parks and Quantum revenue pillars remaining strong. Following the positive performance, the group declared a final dividend of two sen per share, bringing the total dividends for FY2024 to six sen per share.