Tropicana ends 2018 with lower net profit

KUALA LUMPUR (Feb 26): Tropicana Corp Bhd's net profit fell 32.7% to RM51.48 million in the fourth quarter ended Dec 31, 2018 (4QFY18) from RM76.44 million a year ago, on higher income tax expense.

The group's tax expense for 4QFY18 stood at RM75.48 million compared with RM37.07 million a year ago.

This resulted in lower earnings per share of 3.55 sen for 4QFY18 compared with 5.23 sen for 4QFY17.

Quarterly revenue, however, was 9.2% higher at RM593.93 million from RM544 million a year ago, which the property developer attributed to the completion of the disposal of development lands in Pekan Country Height, Selangor for RM143 million.

In a statement today, Tropicana said the group drew in sales of RM154.9 million in 4QFY18 and is confident that it will continue to demonstrate further resilience moving forward, backed by RM827.2 million in unbilled sales.

Still, the weak quarterly performance dragged the group's net profit down by 6% to close FY18 on a lower note at RM170.03 million compared with RM180.89 million in FY17.

Revenue was also down 9.9% to RM1.64 billion from RM1.81 billion in the previous year, mainly due to lower sales and progress billings across projects in the Klang Valley, as well as the southern and northern regions.

Tropicana said in 2019, it plans to introduce new developments and phases within the existing signature Tropicana townships amounting to a gross develoment value (GDV) of more than RM3.2 billion.

"Looking ahead, the group will remain focused on being market driven and adapting to market demands while unlocking value of its landbank in strategic locations in the Klang Valley, Genting (Pahang) and southern regions of peninsular Malaysia," it added.

Tropicana will continue to focus on the introduction of new phases across its signature developments, namely at Tropicana Heights, Tropicana Aman, Tropicana Metropark and Tropicana Danga Cove. The group will also launch the first phase of serviced apartments in Genting, Pahang, spanning 112 acres, towards the fourth quarter of 2019.

"All of these new developments are expected to contribute positively to the group’s earnings in the coming years," said Tropicana.

The group’s landbank stands at 1,088.8 acres, with a total potential GDV of RM46.1 billion.

Shares of Tropicana closed down 0.5 sen or 0.58% at 86 sen today, bringing it a market capitalisation of RM1.24 billion. — theedgemarkets.com

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