Tropicana falls 2.17% on weaker 2Q earnings

KUALA LUMPUR (Aug 14): Shares of Tropicana Corporation Bhd fell 2.17% in late morning trade today after its net profit for the second quarter ended June 30, 2015 (2QFY15) fall 74% on-year to RM23.2 million from RM89.5 million, mainly because 2QFY14 had recognised gains from the disposal of properties and a joint venture unit.

At 10.56am, Tropicana fell 2 sen to 90 sen with 319,700 shares done.

Tropicana’s earnings per share dropped to 1.6 sen a share from 6.45 sen a share previously, its filing to Bursa Malaysia yesterday showed.

Revenue for the quarter, however, improved a marginal 3.6% to RM312.3 million from RM301.5 million last year, underpinned by higher revenue recognition across key projects and proceeds from land sales.

For the six months ended June 30, 2015 (1HFY15), the property developer’s net profit halved to RM42.4 million or 2.97 sen a share from RM97.3 million or 7.52 sen a share previously, for the same reason that caused it to record a fall in its latest quarterly revenue.

Revenue for the period rose 26.9% to RM703.3 million versus RM554.2 million in 1HFY14.

In a press statement, Tropicana said despite cautious industry sentiments, its performance proved resilient, as its total sales for the first half of 2015 stood at RM787.4 million, while its unbilled sales are at a record high of RM3 billion.