Higher progress billings, sales boost Tropicana’s 2QFY2023 earnings

• The group’s revenue more than doubled to RM464.51 million from RM211.43 million, according to the property developer’s filing to Bursa Malaysia.

KUALA LUMPUR (Aug 30): Tropicana Corp Bhd returned to the black in the second quarter ended June 30, 2023 (2QFY2023) with a net profit of RM305,000 or 0.02 sen per share, versus a net loss of RM61.55 million or 3.74 sen per share a year earlier.

The group’s revenue more than doubled to RM464.51 million from RM211.43 million, according to the property developer’s filing to Bursa Malaysia.

The significant increase in revenue was driven by higher progress billings and increased sales, achieved across key projects in the southern and northern regions, the Klang Valley as well as cost rationalisation measures to reduce overall expenses.

In addition, the uptick in tourist arrivals, evidenced by an increase in occupancy rates of the hotels owned by the group and better performance from Tropicana’s recreation and resort operations helped spur the group’s growth.

Amid improved quarterly earnings, Tropicana trimmed its net loss to RM4.93 million in the first half ended June 30, 2023 (1HFY2023) from RM94.95 million a year earlier.

Revenue was higher at RM721.24 million, a 66% increase from RM434.73 million in 1HFY2022.

Commenting on its prospects, the group believes that demand for properties in prime locations in its established and developing townships will continue to be strong. The group’s ongoing or new developments recorded excellent take-up rate, including Shop Offices, Tropicana Aman @ Kota Kemuning (100% take-up); and SouthPlace Residences, Tropicana Metropark @ Subang Jaya (94% take-up).

“We are confident that the group 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 take-up for our ongoing projects. This is complemented by our four newly launched or upcoming developments worth gross development value (GDV) of RM1.1 billion in 2023,” said Tropicana.

“Overall, Tropicana’s total landbank spans 2,091 acres, with a total potential GDV of approximately RM203.7 billion, placing the group in a good position to unlock the value of its strategic landbank and deliver sustainable performance in the next few years,” it added.

Tropicana’s share price gained one sen to RM1.19 on Tuesday, giving the property developer a market value of RM2.73 billion.

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