Tropicana trims 1Q net loss to RM5.23m on improved property investment

• The property developer’s quarterly revenue rose 14.97% to RM256.73 million in 1QFY2023, from RM223.3 million a year ago.

KUALA LUMPUR (May 30): Tropicana Corp Bhd saw its net loss for the first quarter ended March 31, 2023 (1QFY2023) narrow by 84.33% to RM5.23 million or 0.26 sen loss per share, from RM33.39 million or 2.23 sen loss per share a year ago.

Note that this is the fifth consecutive quarterly loss for the group. It first slipped into the red in 1QFY2022 with a net loss of RM33.39 million.

The property developer’s quarterly revenue rose 14.97% to RM256.73 million in 1QFY2023, from RM223.3 million a year ago, according to a bourse filing on Monday (May 29).

Tropicana said the narrowed net loss and the increase in revenue were mainly contributed by the improvement in the group’s property investment, recreation and resort operations, on the back of the reopening of borders, as well as cost rationalisation measures to reduce overall expenses, while adhering to prudent risk management.

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

On a quarter-on-quarter (q-o-q) basis, Tropicana’s net loss narrowed by 98.3% from 307.94 million in 4QFY2022, while revenue fell slightly by 0.54% from RM258.12 million posted in the preceding quarter.

It attributed the lower q-o-q revenue to the lower progress billings across some of the group’s key ongoing projects.

Moving forward, Tropicana said that it remains optimistic and believes that there will still be demand for properties in the group's prime locations, established, matured as well as developing townships.

The group plans to roll out market-driven developments at strategic locations such as SouthPlace 2 Serviced Residences and Shoppes in Tropicana Metropark in Subang Jaya, shop offices in Tropicana Aman at Kota Kemuning, Phase 1A Terraced Homes, Tropicana Alam at Puncak Alam, Tropicana Paradise Villa Lots, Tropicana WindCity and Genting Highlands in Pahang.

“Overall, Tropicana’s total landbank spans 2,091 acres, with a total potential gross development value (GDV) of approximately RM203.7 billion, placing the group in a good position to unlock the value of its strategic landbank and deliver sustainable performance in the next few years,” it said.