Tropicana Corporation Berhad has announced its unaudited financial results for the third quarter ending September 30, 2024. While the group reported a revenue of RM877.8 million, a 21.9% decrease compared to the same period last year, the results underscore Tropicana’s strategic focus on debt reduction and long-term sustainability.
Revenue Performance Overview
The RM877.8 million revenue was primarily impacted by:
- Completion of the divestment of investment properties.
- Lower proceeds from land sales during the financial period.
This strategy aligns with Tropicana’s goal of reducing overall debt levels through asset monetisation initiatives.
Despite the revenue decline, the group’s underlying performance demonstrated resilience. Excluding one-off losses from land and property disposals, Tropicana recorded a profit before tax (PBT) of RM38.9 million, a significant 46.7% increase from the previous year’s RM26.6 million.
Strategic Highlights
- Mitigating One-Off Losses
The group cited that foreseeable losses from land disposals will be mitigated by:- Cost savings from low-cost housing obligations.
- Future recognition of these savings over the next five years, contributing to earnings stability.
- Lower Revenue in 3Q2024
Tropicana’s 3Q2024 revenue of RM201.9 million reflected a 49.9% drop compared to RM402.8 million in 3Q2023. This was attributed to:- Lower progress billings across key projects in the Klang Valley, Southern, and Northern Regions.
- Absence of revenue from St Joseph’s Institution International School and W Kuala Lumpur, which were divested in September 2023 and January 2024, respectively.
Future-Proofing Through Strategic Developments
Tropicana continues to position itself as a sustainable community planner, with a robust growth strategy that includes:
- Estimated GDV of RM5.5 billion worth of residential and commercial developments slated for FY2024.
- Upcoming handovers of vacant possession for six projects, including:
- Tropicana Aman
- Tropicana Miyu
- Tropicana Metropark
- Tropicana Uplands
Additionally, the group is enhancing its digital and customer loyalty segments, providing added benefits and rewards to purchasers and business partners.
Recent Achievements
Strategic Land Sales
- Johor Land Sale to NTT Data Group
- Value: RM383 million
- Land Deal with Z Data Group
- Value: RM240 million
Project Milestones
- Edelweiss Serviced Residences: Recently achieved 100% take-up and topping-off.
Strengthening Financial Position
Tropicana boasts unbilled sales of RM2.3 billion and a sizeable landbank of 1,612 acres with an estimated GDV of RM109 billion. This positions the group strongly to deliver sustainable performance and growth in the coming years.
Conclusion
Tropicana Corp’s 3Q2024 results highlight a period of strategic recalibration aimed at strengthening its financial position and future growth potential. By prioritising debt reduction, sustainable developments, and enhanced customer engagement, Tropicana is laying a solid foundation for long-term resilience and market leadership in Malaysia’s property sector.
