Tropicana’s revenue climbs 15.8% higher, property sales hit RM1.3 bil

• The increase in the revenue was mainly attributed by higher progress billings across key projects in the Klang Valley and Southern Region as well as higher property sales achieved during the financial period ended Dec 31, 2022.

PETALING JAYA (Feb 28): In a filing to Bursa Malaysia, Tropicana Corp Bhd reported in its unaudited financial results for the fourth quarter ended Dec 31, 2022 that it posted a higher revenue of RM1,014.5 million, which was RM138.5 million or 15.8% higher compared to the preceding year (FY2021: RM876 million).

The increase in the revenue was mainly attributed by higher progress billings across key projects in the Klang Valley and Southern Region as well as higher property sales achieved during the financial period ended Dec 31, 2022.

“We will continue the good momentum, accelerate our launches, and roll out more innovative marketing and sales campaigns to drive more sales. Digitalisation and online engagement became a big part of our marketing strategies, as these efforts have borne fruit. Thanks to the commitment and contributions from our Tropicana management and team, we have launched many proactive campaigns, such as the T.Living home customisation programme, Tropicana Power Up, Tropicana gogo FIT, Tropicana Journey of a Lifetime and Tropicana Lucky Ang Pow. All these campaigns received positive feedback, allowing us to continue to reach a wider network across Malaysia,” said Joanne Lee, deputy CEO of Tropicana.

“In addition, we are looking to get back into the black in 2023, underpinned by our robust unbilled sales of RM2 billion as of Dec 31, 2022. The 33% rise (RM1.5 billion in FY2021) was spurred by launches in Tropicana’s unique residential, commercial and resort-themed developments. In the pipeline, we will continue to unlock our landbank offering six new developments with a total GDV of RM2.4 billion which will contribute to the future earnings of the group,” Lee added.

For the current fourth quarter ended Dec 31, 2022 (4QFY2022), the group recorded revenue of RM258.1 million (4Q2021: RM270.1 million) which was RM12 million or 4.4% lower when compared to the corresponding quarter in the preceding year.

The group recorded a loss before tax (LBT) of RM308.9 million as compared to a profit before tax (PBT) of RM19.6 million in the corresponding quarter in the preceding year. The decrease in revenue and PBT in the current quarter is mainly contributed by lower progress billings across key projects in the Klang Valley and Southern Region.

Besides that, the proposed disposals of two parcels of development lands in Kota Kemuning and Johor for RM244.4 million in 4QFY2022 also caused the fourth quarter’s result to be weaker as the proposed disposals have given rise to provisions for foreseeable losses of RM298.6 million.

These provisions for foreseeable losses which arose mainly due to the group’s basis of allocation of land and infrastructure costs have been recognised in the current quarter according to the Malaysian Financial Reporting Standards.

Despite the losses incurred from the disposal of these two parcels of land, the group cited that these disposals gave rise to positive cash flows for the group.

For the financial period ended Dec 31, 2022, the group’s LBT stands at RM400.9 million as compared to LBT of RM36 million in the preceding year mainly due to losses incurred on the proposed disposals of two parcels of development lands as mentioned above.

Despite the loss for the period, the group’s property investment, recreation and resort operations have shown a significant improvement in their performance as a result of the reopening of borders for travellers from all countries effective April 1, 2022. The group recorded a positive cash inflow of RM239.7 million generated from operations, which was 201.4% higher than the preceding year.

The group remains optimistic and believes that there will still be demand for properties in prime locations in Tropicana’s established, matured, and developing townships, with attractive pricing and innovative ownership packages. The group continues to unlock its landbank at strategic locations in the Klang Valley, Genting Highlands, Northern Region and Southern Region.