Tropicana posts RM877.8 mil revenue in 3QFY2024

• Excluding the one-off losses from the disposal of investment property and development land, Tropicana would have recorded a higher profit before tax (PBT) of RM38.9 million, a jump of 46.7% against the preceding year of RM26.6 million.

PETALING JAYA (Nov 27): Tropicana Corp Bhd today announced its unaudited financial results for the third quarter ended Sept 30, 2024 (3Q2024). It reported a revenue of RM877.8 million, which was RM246.2 million or 21.9% lower when compared to the preceding year.

This was mainly due to the completion of the divestment of investment properties coupled with lower land sale proceeds in the current financial period. The divestment and land sale exercise were consistent with Tropicana’s strategy to reduce overall debt level via assets monetisation.

Excluding the one-off losses from the disposal of investment property and development land, Tropicana would have recorded a higher profit before tax (PBT) of RM38.9 million, a jump of 46.7% against the preceding year of RM26.6 million.

“The provision of foreseeable losses arose from the land disposal will eventually be mitigated by the cost savings from low-cost housing obligation, which will be recognised progressively over the next five years, and this will contribute to future earnings of the group,” stated Tropicana in a media release.

The group recorded revenue of RM201.9 million in 3Q2024, a 49.9% decrease compared to the corresponding quarter in the preceding year (3Q2023: RM402.8 million). The lower revenue for 3Q2024 is primarily attributed to lower progress billings across key projects in the Klang Valley, Southern and Northern Regions as well as 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.

The management cited that Tropicana’s continued focus and performance-driven initiatives have demonstrated results across its key business segments. “As a sustainable community planner, we focus on future-proofing our businesses through a robust growth strategy, effective marketing and sales campaigns, engagement with our stakeholders and the delivery of quality properties. In FY2024, we have an interesting mix of residential or commercial developments worth an estimated GDV of RM5.5 billion.”

“Our financial position will also strengthen with the handover of vacant possession of six projects this year comprising 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.

Over the past few months, Tropicana announced its successful Johor land sale of RM383 million to NTT Data Group and RM240 million land deal with Z Data Group to its recent topping off and 100% take-up announcement on Edelweiss Serviced Residences, SOFO and Shoppes at Klang Valley.

With Tropicana’s unbilled sales of RM2.3 billion and a sizeable landbank of 1,612 acres with an estimated GDV of RM109 billion, the group is seen to be in a good position to deliver sustainable performance in the next few years.

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