Tropicana Corporation Berhad Q3 pre-tax profit increases fourfold to RM175.4 million

Tropicana Corporation Berhad Q3 pre-tax profit increases fourfold to RM175.4 million

Petaling Jaya,26 November 2015 – Property developer Tropicana Corporation Berhad (Tropicana or Group) announced yesterday its unaudited financial results for the third quarter ended 30 September 2015.

For the third quarter under review, the Group recorded revenue of RM244.6 million or 18.7% decrease from RM300.7 million in the same period in 2014. The decrease in revenue was due to lower work in progress in property development segment in the quarter under review as a number of the group’s projects were in the early stages of construction.

Notwithstanding the decrease in revenue, the Group achieved a significant higher profit before tax (PBT) of RM175.4 million for the quarter ended 30 September 2015, up 334% from RM40.4 million in the previous corresponding period a year ago. The higher PBT in the quarter under review was contributed by gains from the disposals of investment properties and a subsidiary.Net profit attributable to shareholders jumped fivefold or 414% to RM151.8 million in the quarter under review, up from RM29.5 million in the same period last year.

For the nine months ended 30 September 2015, Group Revenue increased by 10.9% to RM947.8 million from RM854.9 million in 2014. For the nine-month period, Group PBT rose 43.7% to RM242.4 million from RM168.7 million a year ago, whilst net profit attributable to shareholders was 53.2% higher at RM194.2 million from RM126.8 million previously.

Tropicana’s de-gearing initiatives are also bearing fruit. The Group’s financial position has strengthened considerably, with net gearing at the end of September 2015 registering a marked improvement to 0.28x from 0.68x as at the end of December 2014. Year-to-date, Tropicana has received cash proceeds totalling RM1.07 billion arising from the strategic disposal of non-core assets and investment properties undertaken over the past year. 

The Board of Tropicana has declared a first interim dividend of 5 sen per share in respect of the current financial year ending 31 December 2015.

Despite a slower property market, Tropicana delivered commendable sales performance in the first nine months of its current financial year, chalking up new sales of RM1.3 billion with unbilled sales at a record of RM3.1 billion as at end-September 2015. The Group’s integrated mix township developments projects in the Central Region continue to draw healthy interest, especially for landed properties in Tropicana Aman, Shah Alam, and Tropicana Heights, Kajang, where new launches in the year to date attracted good take up rates from buyers. Overall, the Group is on track to exceed previous financial year’s total sales of RM1.5 billion in the current year to 31 December 2015.

Going forward, the Group believes there will still be demand for landed properties and integrated developments in good locations with great accessibility and attractive pricing. Tropicana’s strategy for 2016 will continue to be market driven and adapt to market demand while focusing on unlocking the value of its land bank in Klang Valley, as well as those in the Northern Region. The Group possesses a sizeable landbank of more than 1,600 acres across Malaysia with future GDV of over RM50.0billion. Together with high unbilled sales and a strengthened balance sheet, the Group is positioned to deliver sustained performance in the near future. 

* Tropicana Corporation Berhad’s mixed township development, Tropicana Aman in Shah Alam continues to draw healthy interest.