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Tropicana 3Q net profit falls 14% due to temporary work halts, lower sales amid pandemic

KUALA LUMPUR (Nov 20): Tropicana Corp Bhd's net profit for the third quarter ended Sept 30, 2020, fell 14% to RM14.51 million from RM16.8 million a year earlier, due to the temporary ceasing of activities and lower sales amid the pandemic.

Revenue for the quarter was down 9% at RM223.97 million, versus RM246.13 million in the previous year’s corresponding quarter.

In its filing with Bursa Malaysia, the property developer attributed the decline in profit and revenue for the quarter to lower progress billings across some of its key existing ongoing projects, and lower sales amid the Covid-19 outbreak.

It also said development activities were temporarily halted upon the enforcement of the Movement Control Order (MCO) and the Conditional MCO from March 18 onwards.

The property investment, recreation and resort operations were also negatively impacted by the pandemic, it said.

Pre-tax profit, however, was 4.3% higher year-on-year at RM115.1 million, amid gains from the sale of two parcels of development lands.

For the nine months to Sept 30, net profit dropped 57% to RM43.95 million from RM101.88 million in the previous year, while cumulative revenue fell 7% to RM702.37 million from RM755.35 million.

“We have ridden through this pandemic, and we are continually progressing — embarking on our cost-efficiency measures, digital realignments and careful rationalisation of our launches — in our aim to build a more resilient and agile corporation.

“We are overcoming adversity, and we are well-positioned to weather through these challenges,” said Tropicana group managing director Dion Tan.

The group rolled out several new developments with a total gross development value (GDV) of RM695 million in its current financial year including Tropicana Miyu condominiums in Petaling Jaya and Shoppes & Residences (South), a mixed development comprising retail lots, and serviced apartments at Tropicana Metropark, Subang Jaya.

It said it continued to see excellent takeup for Edelweiss SOFO and serviced residences — the fifth and final tower of its signature Tropicana Gardens development.

Meanwhile, the group plans to launch its first integrated master-planned development in Genting Highlands, Pahang, known as Tropicana Grandhill, and Summit Commercial Hub, Tropicana Uplands in Gelang Patah, Johor.

Its unbilled sales stood at RM846.6 million for the period under review, while its total landbank amounted to 2,344 acres with a potential GDV of RM80 billion.

Tropicana fell five sen or 0.59% to 84 sen today, giving it a market capitalisation of RM1.24 billion.

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