Tropicana 4Q earnings more than doubles

KUALA LUMPUR (Feb 28): Tropicana Corp Bhd, which intends to buy land near Genting Highlands, saw its net profit for the fourth quarter of its financial year ended Dec 31, 2017 (4QFY17) more than double to RM69.6 million or 4.77 sen per share from RM29.3 million or 2.05 sen per share in the previous corresponding quarter.

The property developer attributed the big jump in earnings to cost savings, release of low-cost provisions and advanced progress of projects.

For the current quarter, the group’s revenue expanded by 35.4% to RM619 million compared with RM457.3 million recorded in 4QFY16. A note filed with Bursa Malaysia showed that the increase in revenue in the quarter reflected higher progress billings from advanced stages of construction work for many of the group’s ongoing projects.

In a press statement, Tropicana said that it drew in sales contribution of RM252.6 million in 4QFY17 and is confident that it will continue to demonstrate further resilience moving forward, backed by RM1.5 billion in unbilled sales.

For the full FY17, Tropicana’s net profit was higher by 69.3% to RM190.5 million or 13.1 sen per share from RM112.5 million or 7.87 sen per share in the corresponding period a year ago on the back of higher revenue.

The group’s annual revenue for FY17 grew by 30.8% to RM1.91 billion from RM1.46 billion in FY16, mainly fuelled by higher revenue recognition across key projects in the central and northern regions.

In 2017, Tropicana recorded commendable take-up rates across all phases launched at five of its signature developments, namely Tropicana Heights (92%), Tropicana Gardens (91%), The Residences (87%), Tropicana Metropark (79%) and Tropicana Aman (58%), according to the statement.

Tropicana announced yesterday it will buy the 112 acres (45.32ha) of land near Genting Highlands for about RM78.3 million, according to a press release.

It said that Tropicana will acquire Marivaux Holdings Sdn Bhd, which owns the land. “Tropicana is tapping into the growth potential of this land by developing a resort-type development for people who desire the resort-type lifestyle, surrounded by lots of greenery and fresh air,” it added.

This article first appeared in The Edge Financial Daily, on Feb 28, 2018.

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