Tropicana Corp Bhd announced unaudited financial results for the third quarter ended Sept 30, 2023, with revenue reaching RM402.8 million. This represents a significant increase of RM81.1 million or 25.2% compared to the same quarter in the previous year when revenue stood at RM321.6 million. The group also reported a profit before tax (PBT) of RM24 million, a nearly five-fold increase from RM5 million in the corresponding quarter of the preceding year.
The notable rise in PBT can be attributed to several factors, including the completion of the disposals of two parcels of freehold development land in Kajang and Genting Highlands, which generated a total consideration of RM71 million. Additionally, a cost rationalization exercise helped reduce overall expenses.
Furthermore, Tropicana strengthened its financial position by divesting equity interests in two subsidiaries, Tropicana Education Management Sdn Bhd and Tropicana SJII Education Management Sdn Bhd, contributing to the growth in PBT.
For the financial period ending Sept 30, 2023, Tropicana recorded total revenue of RM1.1 billion, marking a substantial increase of RM367.6 million or 48.6% compared to the previous year. This significant boost in revenue was primarily due to higher progress billings across key projects in the Klang Valley, Southern and Northern Regions, combined with the completion of land disposals in Kota Kemuning, Kajang, and Genting Highlands, amounting to RM205.6 million in total consideration.
PBT for the same period amounted to RM26.6 million, a turnaround from the loss before tax of RM92.0 million reported previously. This turnaround was largely attributed to the successful divestment of equity interests held in two subsidiaries.
Tropicana Corp’s property investment, recreation, and resort segment also experienced a noteworthy improvement, with increased occupancy rates in the group’s owned hotels.
The company remains optimistic about the demand for properties in prime locations within its established, matured, and developing townships. Tropicana’s management emphasized their commitment to sustainability, community planning, and engagement with stakeholders as part of their future-proofing strategy.
The company highlighted its recent successes, including sukuk redemption, award achievements, and positive property take-up across Malaysia. With a high unbilled sales of RM2.3 billion and RM1.3 billion in property bookings recorded nationwide, Tropicana is confident in its market presence and future earnings. The company also plans to launch four new developments with an estimated gross development value (GDV) of RM1.2 billion in 2023.