Tropicana Corp registers higher 2Q profit before tax

• This is mainly due to higher income as a result of higher progress billing, unrealised gain on quoted shares and lower finance cost following debt reduction initiatives.

PETALING JAYA (Aug 29): Tropicana Corp Bhd’s profit before tax (PBT) for Q22024 rose to RM76.1 million compared to RM1.8 million in the corresponding quarter last year.

This is mainly due to higher income as a result of higher progress billing, unrealised gain on quoted shares and lower finance cost following debt reduction initiatives, Tropicana stated in a media release today.

The higher profit generated and the reduction in gearing have Tropicana Corp’s financial position, improving the gross gearing ratio from 0.74 times as of Dec 31, 2023 to 0.65 times as of June 30, 2024.

The group recorded revenue of RM384.7 million in 2Q2024, a 17.2% decrease compared to the corresponding quarter in the preceding year (2Q2023: RM464.5 million).

The lower revenue for 2Q2024 is primarily attributed to the absence of revenue from St. Joseph’s Institution International School and W Kuala Lumpur which were disposed in September 2023 and January 2024, respectively, as well as lower land sale proceeds.

“Nevertheless, excluding land sales, the property development segment performed better in 2Q2024 compared to 2Q2023, supported by higher progress billings across key projects in the Klang Valley, Southern and Northern regions,” said Tropicana Corp.

For the first half (1H) of 2024, the group recorded a significantly higher PBT of RM98.3 million compared to RM2.6 million in 1H2023.

The stronger performance was due to the higher progress billings, recognition of unrealised gains on quoted shares, and lower finance costs resulting from lower gearing level.

The management cited that the group’s continued focus and performance-driven initiatives have demonstrated results across its key business segments.

“As sustainable community planners, we focus on future-proofing our business through effective marketing and sales campaigns, engagement with our stakeholders and delivery of quality properties on time.

“In FY2024, we have an interesting mix of residential or commercial developments worth an estimated GDV of RM4 billion. Our financial position will also strengthen with the handover of six vacant possessions this year from Tropicana Aman, Tropicana Miyu, Tropicana Metropark, and Tropicana Uplands. We are also enhancing our digital and customer loyalty segment, offering more benefits and rewards to our purchasers and business partners,” the management added.

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