Tropicana 2Q revenue jumps 158% on land sales; PBT more than doubles

PETALING JAYA (Aug 27): Tropicana Corp Bhd’s revenue rose 157.7% year on year to RM850.77 million in the second quarter ended June 30, 2026 (2QFY2026), from RM330.18 million, as the property developer completed three land sales in Johor Bahru and Selangor.

Profit before tax (PBT) more than doubled to RM21.88 million from RM10.65 million in the previous year’s corresponding quarter, according to the group’s unaudited results filed with Bursa Malaysia on Thursday (Aug 27).

Tropicana said the land sales, with total consideration of RM513.8 million, contributed materially to the increase in quarterly revenue. Revenue from its core operations also increased, mainly due to vacant-possession deliveries at projects in Tropicana Indah in Kota Damansara and Tropicana Cenang in Langkawi.

The group said the higher quarterly PBT reflected stronger progress billings from projects in the Klang Valley and southern region, vacant-possession deliveries and cost-rationalisation measures.

Despite the higher PBT, Tropicana recorded a consolidated loss after tax of RM17.54 million for 2QFY2026, compared with a profit after tax of RM10.48 million a year earlier, after recognising RM39.41 million in income-tax expense, against RM169,000 previously.

Loss attributable to owners of the parent was RM12.70 million, or 0.53 sen per share, compared with a profit attributable to owners of RM1.25 million, or 0.05 sen per share, in the corresponding quarter last year.

Tropicana said its effective tax rate was higher than the statutory tax rate mainly because certain expenses were not deductible for tax purposes.

First-half revenue nearly doubles to RM1.16b

For the first six months of FY2026, revenue rose 97.2% to RM1.16 billion from RM590.54 million in the previous corresponding period.

First-half PBT, however, fell 43.1% to RM9.09 million from RM15.97 million. Tropicana attributed the decrease mainly to a RM23.1 million unrealised loss on quoted shares. The group said that excluding the unrealised loss, PBT would have been RM32.2 million.

Loss attributable to owners of the parent stood at RM35.82 million for 1HFY2026, compared with a profit attributable to owners of RM2.56 million a year earlier.

The property development and property management segment generated first-half revenue of RM1.12 billion and PBT of RM100.60 million, while the investment holding and other segment recorded a loss before tax of RM97.31 million.

Borrowings fall 4%

Tropicana’s total borrowings declined by RM109.2 million, or 4%, to RM2.64 billion as at June 30 from RM2.75 billion at end-2025.

The group generated RM312.88 million in net cash from operating activities during the first half, compared with RM108.63 million used in the corresponding period last year.

Tropicana said its unbilled sales stood at RM1.4 billion as at end-June.

Tropicana also said MARC Ratings had revised the outlook on its rating to positive from stable, while affirming the rating.

The group said its current landbank stands at 1,349.7 acres, with a potential gross development value (GDV) of RM102.6 billion. It is also preparing new developments with a combined GDV of RM1.9 billion for 2026 and 2027, including projects in Puncak Alam, Cyberjaya, Langkawi and Johor Bahru.

Tropicana said it remains focused on improving sales performance, progressing its ongoing developments, managing costs and monetising selected assets where appropriate.

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