Strong Financial Performance in Q3 2023
In a recent update to Bursa Malaysia, Tropicana Corporation Berhad, a leading property developer, revealed its unaudited financial results for the third quarter ending 30 September 2023. The Group reported a remarkable revenue of RM402.8 million, a substantial increase of 25.2% from RM321.6 million in the same quarter of the previous year. Notably, the profit before tax (PBT) soared to RM24 million, marking an almost five-fold rise from RM5 million in the corresponding quarter last year.
Key Drivers of Growth
This significant financial uplift was primarily due to the successful disposals of two freehold development lands in Kajang and Genting Highlands, totaling RM71 million. Additionally, Tropicana’s focused cost rationalization efforts contributed to reducing overall expenses. The divestment of equity interests in Tropicana Education Management Sdn Bhd and Tropicana SJII Education Management Sdn Bhd further bolstered the Group’s PBT.
Strategic Business Focus
The management highlighted the Group’s dedication to its key business segments, stating, “Building townships since 1979, Tropicana has broadened its position from a resort-style developer to a sustainable community planner anchored on its 8 development DNAs and 3 ESG pillars. Our approach focuses on future-proofing our businesses through our constant engagement with our stakeholders, especially our loyal property purchasers as well as our marketing and sales amplification through various online and offline initiatives. We aim to provide the best value, make a difference to the community and contribute to a sustainable future.”
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Positive Market Outlook
Reflecting on the year’s achievements, the management expressed, “Since early 2023, we have reported a string of positive news, from our successful sukuk redemption, multiple award triumphs to positive take-up of our properties across Malaysia. We are confident that Tropicana will continue to strengthen its market presence and contribute to its future earnings supported by our high unbilled sales of RM2.3 billion and strong RM1.3 billion property bookings recorded across Malaysia. This is complemented by our 4 newly launched or upcoming developments worth an estimated GDV of RM1.2 billion in 2023.”
Year-to-Date Financial Highlights
For the financial period ended 30 September 2023, Tropicana recorded a revenue of RM1.1 billion, a significant 48.6% increase from the previous year. This growth is attributed to higher progress billings across key projects and the completion of land disposals in Kota Kemuning, Kajang, and Genting Highlands totaling RM205.6 million. The Group’s PBT stood at RM26.6 million, a stark contrast to the RM92.0 million loss before tax in the preceding year.
Future Prospects and Developments
The Group remains optimistic about the continuous demand for properties in its prime locations. Tropicana’s ongoing and new developments have shown excellent take-up rates, with highlights such as 95% take-up at SouthPlace Residences and 100% take-up at Shop Offices in Tropicana Aman. The Group anticipates similar success for its new developments slated for 2023.
Overall, with a total landbank of 1,842 acres and a potential GDV of approximately RM120 billion, Tropicana Corporation Berhad is well-positioned to unlock the value of its strategic landbank and deliver sustainable performance in the coming years.
