KUALA LUMPUR (May 26): Tropicana Corp Bhd sank into the red in the first quarter ended March 31, 2022 (1QFY22) with a net loss of RM33.39 million from a net profit of RM2.34 million a year earlier, largely because its hotel business “has not fully recovered from the Covid-19 pandemic”.

The property developer’s quarterly revenue slipped 7.16% to RM223.3 million in 1QFY22 from RM240.53 million a year ago, mainly attributed to lower progress billings across its key projects in the Klang Valley and Southern Region of Malaysia compared with 1QFY21, according to a bourse filing on Wednesday (May 25).

It did not declare any dividend for the quarter under review.

On a quarter-on-quarter (q-o-q) basis, Tropicana was in the black in 4QFY21 with a net profit of RM7.94 million.

Revenue for the period under review was 15.34% lower over the RM263.76 million posted in the preceding quarter.

The group said the q-o-q slump in earnings was due to higher sales and marketing expenses due to new project launches as well as higher general and administrative expenses.

It attributed the lower q-o-q revenue to softer sales as a result of the Home Ownership Campaign having ended on Dec 31, 2021, as well as the aforementioned lower progress billings across projects.

Going forward, Tropicana said the group remains “positive and confident” on the long-term prospects of its property development business as it continues to develop and market its properties located at various strategic locations, which subsequently are expected to contribute positively to future earnings.

“In addition, the group believes that its various sales and marketing initiatives will continue to bear fruit and ultimately secure more sales in the coming years,” it added.

In a separate statement, Tropicana managing director Dion Tan said that the group’s aggressive sales and partnership campaign as well as the gradual economic recovery will support the growth of the group.

“To accelerate our growth, we also plan to launch up to RM2.9 billion worth of properties in 2022. We believe these campaigns will be timely and appeal to the property seekers following the opening of international borders.

“We will continue to innovate our projects, as we adapt to the market sentiment while staying true to our Tropicana development DNA,” he said.

Tropicana shares closed up 1.5 sen or 1.56% to 97.5 sen, giving the group a market capitalisation of RM1.67 billion.

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