Prop Social - Tropicana Recorded 8.4% Increase in Revenue
In a filing to Bursa Malaysia, property developer Tropicana Corporation Berhad (“Tropicana” or “The Group”) reported its unaudited financial results for the second quarter ended 30 June 2022 (“Q2 FY2022”).
The Group posted revenue of RM211.4 million (Q2 2021: RM195 million) which was RM16.5 million or 8.4% higher when compared to the corresponding quarter in the preceding year. The higher revenue was buoyed by an improvement in the Group’s property investment, recreation and resort operations on the back of the reopening of borders since 1 April 2022.
Joanne Lee, Senior Managing Director of Tropicana shared that the Group’s aggressive sales and partnership campaigns as well as the progressive rebound in economic activity will help spur the growth of the Group.
“This year Tropicana launched many proactive campaigns, such as the Multi-Million Mania, Tropicana Power Up as well as Tropicana go-go FIT. All the campaigns received positive feedback. For example, the Multi-Million Mania campaign recorded a resounding success – attracted 5,600 participants, and generated RM524.2 million property bookings and RM10.7 million retail sales at our Tropicana Gardens Mall. We will continue to leverage on these customer-centric campaigns to secure more sales and remain optimistic about the Group’s long-term prospects. In addition, we will continue to develop and market Tropicana townships at various strategic locations, which are expected to contribute positively to the future earnings of the Group.”
“To accelerate our growth, we continue to unlock our landbank offering 8 new developments with a GDV of over RM2.9 billion. We will continue to innovate our projects, as we adapt to the market sentiment while staying true to our Tropicana development DNA.” she summarised.
Despite the increase in revenue, the Group recorded a loss before tax (“LBT”) of RM61.5 million as compared to LBT of RM43.5 million in the corresponding quarter in the preceding year which was mainly due to lower progress billings across key projects in the Klang Valley and Southern Region as most of the projects are in the early to mid-stages of construction.
The Group recorded revenue of RM434.7 million for the financial period ended 30 June 2022, which was RM0.8 million lower when compared to the corresponding period in the preceding year. Despite higher sales achieved during the financial period ended 30 June 2022, the slight decrease in the revenue was mainly attributed to lower progress billings across key projects in the Klang Valley and Southern Region as most of the projects are in the early to mid-stages of construction. The Group’s LBT was recorded at RM97 million as compared to LBT of RM24.1 million in the corresponding period in the preceding year mainly due to lower progress billings as mentioned above. Notwithstanding the loss of the period, the Group’s property investment, recreation and resort operations have shown a significant improvement in their performance as a result of the reopening of borders for travellers from all countries effective from 1 April 2022.
The Group remains optimistic and 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. The Group continues to unlock its landbank at strategic locations in the Klang Valley, Genting Highlands, Northern Region and Southern Region such as:
1. Gemala Residences, Tropicana Aman @ Kota Kemuning
2. Hana Residences, Tropicana Aman @ Kota Kemuning
3. SouthPlace 2 (Shoppes & Residences), Tropicana Metropark @ Subang
4. Tropicana WindCity, Genting Highlands @ Pahang
5. Merissa Villas, Tropicana Cenang @ Langkawi
6. Aster Heights, Tropicana Uplands @ Johor
7. Tropicana Industrial Park, Iskandar Malaysia @ Johor
8. Lido Waterfront Boulevard @ Johor
Tropicana’s unbilled sales stood at RM1.8 billion backed by its unique residential, commercial and resort-themed developments. 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.
