Tropicana posts 25% revenue jump with profit before tax increasing five-fold

• The group’s property investment, recreation and resort segment has also seen a significant improvement which is evidenced by the increase in the occupancy rates of the hotels owned by the group.

PETALING JAYA (Nov 28): Tropicana Corp Bhd recorded revenue of RM402.8 million which was RM81.1 million or 25.2% higher compared to the corresponding quarter in the preceding year (3Q 2022: RM321.6 million), it reported in its unaudited financial results for the third quarter ended Sept 30, 2023.  

The group also recorded a profit before tax of RM24 million, an almost five-fold increase as compared to RM5 million in the corresponding quarter in the preceding year.

The significant increase was mainly attributed to the completion of the disposals of two parcels of freehold development land in Kajang and Genting Highlands for a total consideration of RM71 million as well as the group’s cost rationalisation exercise to reduce overall expenses.

In addition, the recent divestment of equity interests held in two subsidiaries namely Tropicana Education Management Sdn Bhd and Tropicana SJII Education Management Sdn Bhd helped strengthen the group’s PBT.

For the financial period ended Sept 30, 2023, Tropicana recorded a revenue of RM1.1 billion, which was RM367.6 million or 48.6% higher compared to the preceding year.

The significant increase in revenue was attributed to higher progress billings across key projects in the Klang Valley, Southern and Northern Regions coupled with the completion of the disposals of land in Kota Kemuning, Kajang and Genting Highlands for a total consideration of RM205.6 million.

PBT came in at RM26.6 million compared to a loss before tax of RM92.0 million which was mainly due to the completion of the divestment of equity interests held in two subsidiaries.

The group’s property investment, recreation and resort segment has also seen a significant improvement which is evidenced by the increase in the occupancy rates of the hotels owned by the group.

Tropicana remains optimistic that there will still be demand for properties in prime locations in Tropicana’s established, matured, and developing townships.

“Building townships since 1979, Tropicana has broadened its position from a resort-style developer to a sustainable community planner anchored on its 8 development DNAs and 3 ESG pillars. Our approach focuses on future-proofing our businesses through our constant engagement with our stakeholders, especially our loyal property purchasers as well as our marketing and sales amplification through various online and offline initiatives. We aim to provide the best value, make a difference to the community and contribute to a sustainable future,” Tropicana’s management stated in a media release.

“Since early 2023, we have reported a string of positive news, from our successful sukuk redemption, multiple award triumphs to positive take-up of our properties across Malaysia. We are confident that Tropicana will continue to strengthen its market presence and contribute to its future earnings supported by our high unbilled sales of RM2.3 billion and strong RM1.3 billion property bookings recorded across Malaysia. This is complemented by our 4 newly launched or upcoming developments worth an estimated GDV of RM1.2 billion in 2023,” it added.

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