Tropicana Registers Higher Q2 Profit

PETALING JAYA –  In a filing to Bursa Malaysia, Tropicana Corporation Berhad (“Tropicana” or “Group”) announced its unaudited financial results for the second quarter ended 30 June 2024 (“Q2 2024”). The Group’s profit before tax (“PBT”) for Q2 2024 rose to RM76.1 million compared to RM1.8 million in the corresponding quarter last year, mainly due to higher income as a result of higher progress billing, unrealised gain on quoted shares and lower finance cost following the Group’s debt reduction initiatives. The higher profit generated and the reduction in gearing have strengthened the Group’s financial position, improving the gross gearing ratio from 0.74 times as of 31 December 2023 to 0.65 times as of 30 June 2024.

The Group recorded revenue of RM384.7 million in Q2 2024, a 17.2% decrease compared to the corresponding quarter in the preceding year (Q2 2023: RM464.5 million). The lower revenue for Q2 2024 is primarily attributed to 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, as well as lower land sale proceeds. Nevertheless, excluding land sales, the property development segment performed better in Q2 2024 compared to Q2 2023, supported by higher progress billings across key projects in the Klang Valley, Southern and Northern regions. For the first half (“1H”) of 2024, the Group recorded a significantly higher PBT of RM98.3 million compared to RM2.6 million in 1H 2023. The stronger performance was due to the higher progress billings, recognition of unrealised gains on quoted shares, and lower finance costs resulting from lower gearing level.

The management cited that the Group’s continued focus and performance-driven initiatives have demonstrated results across its key business segments, “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.” 2 | P a g e “In FY2024, we have an interesting mix of residential or commercial developments worth an estimated GDV of RM4 billion. Our financial position will also strengthen with the handover of 6 vacant possessions this year from 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.

Tropicana will continue to gain traction in the market with these signature developments worth an estimated GDV of RM4 billion:

1. Varia Shop Offices, Tropicana Aman @ Kota Kemuning
2. Avisa Terrace Homes, Tropicana Alam @ Puncak Alam
3. Serviced Residences & Retail Shoppes, Lido Waterfront Boulevard @ Johor
4. Fraser Heights Terrace Homes, Tropicana Uplands @ Johor
5. Beachwalk Shoppes, Tropicana Cenang @ Langkawi

Delivering on its promise, Tropicana has completed and delivered the Vacant Possession for the following projects in FY2024:

1. Freesia Residences, Tropicana Aman @ Kota Kemuning
2. Gemala Residences, Tropicana Aman @ Kota Kemuning
3. Aster Heights Terrace Homes, Tropicana Uplands @ Johor

In the pipeline, Tropicana will be completing these 3 projects and ready for the delivery of Vacant Possession by Q4 2024:

1. SouthPlace Residences, Tropicana Metropark @ Subang Jaya
2. Tropicana Miyu Condominiums @ Petaling Jaya
3. Hana Residences, Tropicana Aman @ Kota Kemuning

With Tropicana’s high unbilled sales of RM2.3 billion and a sizeable landbank of 1,842 acres with an estimated GDV of RM120 billion, the Group is in a good position to deliver sustainable performance in the next few years.