Petaling Jaya (29 August 2024) — Tropicana Corporation Berhad (“Tropicana” or “Group”) has reported a remarkable rise in profit before tax (PBT) for the second quarter of 2024, reaching RM76.1 million, a significant leap from RM1.8 million in Q2 2023. This notable growth is attributed to the Group’s strategic initiatives, including higher progress billings, unrealised gains on quoted shares, and a successful debt reduction campaign that lowered finance costs.
Despite a 17.2% decline in revenue to RM384.7 million compared to Q2 2023, mainly due to the absence of income from the disposed St. Joseph’s Institution International School and W Kuala Lumpur, Tropicana’s core property development segment demonstrated robust performance. The company recorded higher progress billings across key projects in Klang Valley, Southern, and Northern regions, excluding land sales.
Strengthened Financial Position and Unbilled Sales
Tropicana’s financial strength was further underscored by a reduction in its gross gearing ratio from 0.74 times as of 31 December 2023 to 0.65 times as of 30 June 2024. The Group’s unbilled sales stood at a substantial RM2.3 billion, positioning the company comfortably to deliver sustainable earnings in the future.
For the first half of 2024 (1H 2024), Tropicana achieved a significantly higher PBT of RM98.3 million compared to RM2.6 million in 1H 2023. This increase is largely driven by the Group’s strategic focus on progress billings, realising unrealised gains on quoted shares, and a reduction in finance costs through lower gearing levels.
Future-Proofing Through Strategic Developments
The management of Tropicana highlighted their commitment to future-proofing the business through a combination of effective marketing, stakeholder engagement, and timely delivery of quality properties. “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,” the management stated.
Also Read: Wen Zhe Lim on the Future of Retail Media and foodpanda’s First-Party Data Strategy
In FY2024, Tropicana is set to launch an exciting mix of residential and commercial developments with an estimated gross development value (GDV) of RM4 billion. These include:
- Varia Shop Offices, Tropicana Aman @ Kota Kemuning
- Avisa Terrace Homes, Tropicana Alam @ Puncak Alam
- Serviced Residences & Retail Shoppes, Lido Waterfront Boulevard @ Johor
- Fraser Heights Terrace Homes, Tropicana Uplands @ Johor
- Beachwalk Shoppes, Tropicana Cenang @ Langkawi
Delivering on Promises and Strengthening Market Position
The Group has successfully delivered the Vacant Possession for several key projects in FY2024, including Freesia Residences and Gemala Residences at Tropicana Aman, as well as Aster Heights Terrace Homes at Tropicana Uplands. Additionally, three more projects are expected to be completed by Q4 2024, namely SouthPlace Residences at Tropicana Metropark, Tropicana Miyu Condominiums at Petaling Jaya, and Hana Residences at Tropicana Aman.
With a high unbilled sales figure of RM2.3 billion and a sizeable landbank of 1,842 acres with an estimated GDV of RM120 billion, Tropicana is well-positioned to continue its trajectory of sustainable growth in the coming years.
About Tropicana Corporation Berhad
Tropicana Corporation Berhad, listed on the Main Market of Bursa Malaysia Securities Berhad since 1992, is one of Malaysia’s premier conglomerates with diverse business interests spanning Property Development and Management, Property Investment, Recreation and Resort, as well as Investment Holding. Discover more about Tropicana’s world by visiting www.tropicanacorp.com.my or following us on Facebook @tropicanacorp.
