30 NOVEMBER, PETALING JAYA – In a filing to Bursa Malaysia, property developer Tropicana Corporation Berhad (“Tropicana” or “The Group”) announced its unaudited financial results for the third quarter ended 30 September 2021 (“Q3 FY2021”). Despite posting higher property sales of RM760.6 million, an impressive jump of 73.8% for the financial period ended 30 September 2021 (30 September 2020: RM437.6 million), the Group’s overall Q3 FY2021 revenue slipped 23.9% to RM170.5 million (Q3 FY2020: RM224 million) which was RM53.5 million lower when compared to the corresponding quarter in the preceding year. This was mainly attributed to the weak performance of the Group’s property investment, recreation, and resort operations due to the Covid-19 outbreaks and enforcement of the various stages of Movement Control Order (“MCO”) by the Malaysian Government.
Dion Tan, Tropicana’s Group Managing Director shared the impact of MCO and despite the unprecedented times, the Group’s property sales performed well.
“This is a spillover effect from various restriction movements. The pandemic caused disruption and delays in the rollout of our new projects as well as ongoing projects. The lockdown has also negatively impacted our property investment, recreation, and resort operations and while these businesses have slowly picked up, we still need to work very hard on our recovery plan. However, our property sales continue to soar and perform well, all thanks to the amazing commitment and support from our team. We will continue to monitor the market, and roll out more engagement initiatives to drive more sales.”
“Our campaigns such as Tropicana 100 offers 100% flexible homeownership solutions on property purchase; Tropicana FreeDOM features attractive packages for completed units and T.Living the first home personalisation programme, have received favourable responses” he summarised.
For the current quarter Q3 FY2021 under review, the Group recorded a loss before tax (“LBT”) of RM31.4 million as the performance of the Group’s property investment, recreation, and resort operations were negatively impacted due to the enforcement of the various stages of MCO leading to disruptions in operations and resulting in a loss for the quarter for that particular segment. However, in the current period, the Group’s property development and property management division still performed strongly and profitably despite the various stages of MCO.
For the financial period ended 30 September 2021, the Group recorded revenue of RM606 million, whereby the revenue in the current period was mainly contributed by higher sales and progress billings across key projects in the Klang Valley and Southern Region. The Group’s LBT was recorded at RM55.6 million and despite the loss for the period, the Group’s property development and property management division still performed strongly and made profits of RM75.2 million for the financial period which were backed by strong sales and cost savings from projects. The property sales of the Group continue to soar and are on track to achieve its RM1.1 billion sales target.
Although the industry remains challenging in the short term, the Group believes that there will still be demand for properties in prime locations in Tropicana’s established, matured, and developing townships, with attractive pricing and innovative ownership packages and offerings. Therefore, the Group will continue to focus on being market-driven in its product offerings whilst continuing to unlock the value of its land bank, at strategic locations across the Klang Valley, Genting Highlands, and Southern Regions. Tropicana will also continue to focus on the introduction of new phases across its signature and established developments, namely Tropicana Heights, Tropicana Aman, Tropicana Metropark, as well as Tropicana Uplands and Tropicana Alma in Johor.
For the period under review, Tropicana’s unbilled sales were up by 39% to RM1.2 billion (Q3 FY2020: RM0.8 billion), backed by its unique residential, commercial and resort-themed developments. Overall, Tropicana’s total landbank stood at 2,452 acres, with a total potential GDV of approximately RM152.2 billion, placing the Group in a good position to unlock the value of its strategic landbank and deliver sustainable earnings in the next few years.