In a filing to Bursa Malaysia, property developer Tropicana Corporation Berhad (“Tropicana” or “The Group”) announced its unaudited financial results for the first quarter ended 31 March 2021 (“Q1 FY2021”). The Group posted an increased revenue of RM240.5 million for its Q1 FY2021, a jump of 68.5% higher than RM142.7 million for the year-ago period.
For the current quarter under review, the Group’s profit before tax (“PBT”) was higher by RM11.5 million or 146.3% as compared to the corresponding quarter in the preceding year. Meanwhile, profit after tax (“PAT”) came in at RM8.4 million, an increase of 56.3% from RM5.4 million recorded last corresponding quarter.
The increase in revenue, PBT, and PAT in the current quarter is mainly contributed by higher sales and progress billings across key projects in the Klang Valley and Southern Region which have picked up in the current quarter as compared to the corresponding quarter in the preceding year which was affected by the Movement Control Order (“MCO”).
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Dion Tan, Tropicana’s Group Managing Director shared that the Group delivered positive results despite the unprecedented times and will continue to be cautiously optimistic about the growth of the Group.
“While we have outperformed the market so far this year, the question that comes to everyone’s minds is: what’s next with the MCO 3.0? There are no easy answers to this key question, but one reliable measure is to be agile and react promptly to market appetite. We appreciate the amazing commitment and support from our team and we will continue to monitor the market closely.
“Our flexible homeownership solutions such as Tropicana 100 campaign that offers 100% amazing deals and our Tropicana FreeDOM campaign featuring big savings for completed units have received favourable responses. To enhance our customer engagement experience, we have also accelerated our digitisation journey by improving our Tropicana ecosystem with our Tropicana 360 developer app as well as revamped our website with insightful updates.” he summarised.
The Group’s revenue of RM240.5 million in the current quarter was RM116.2 million or 32.6% lower when compared to the preceding quarter ended 31 December 2020. Higher revenue in the previous quarter reflected the completion of the disposals of two parcels of freehold development lands in Johor Bahru, for a total consideration of RM157.4 million whereby comparatively there were no land disposals in the current quarter.
The Group’s recorded profit before tax of RM19.3 million was RM104.2 million lower than the preceding quarter ended 31 December 2020. This was mainly due to the gains arising from the sale of the two parcels of freehold development lands in the preceding quarter mentioned above amounting to RM98.1 million.
For the Q1 FY2021, the Group attributed the higher sales and revenue to its current and upcoming developments across its Tropicana townships such as Tropicana Miyu condominiums at Petaling Jaya and Shoppes & Residences (South), a mixed development comprising retail lots, and serviced apartments at Tropicana Metropark, Subang Jaya. The Group also continues to record an excellent uptake for Edelweiss SOFO and Serviced Residences, the fifth and final tower of its signature Tropicana Gardens development.
In the pipeline, the Group plans to launch:
- Freesia Residences, the contemporary villa series comprising of Lake Villas and Park Villas in Tropicana Aman, Kota Kemuning.
- TwinPines Serviced Suites, an exclusive residential phase in its first integrated master-planned development aptly known as Tropicana Grandhill in Genting Highlands, Pahang.
- Summit Commercial Hub, the vibrant business centre at Tropicana Uplands in Gelang Patah, Johor.
- Tropicana Cenang, the fully-furnished premium seafront residences in Langkawi. Another new development represented by the Group as their main appointed sales and marketing arm.
For the period under review, Tropicana’s unbilled sales were RM1.1 billion, backed by its unique residential, commercial and resort-themed developments. Overall, Tropicana’s total landbank stood at 2,144 acres, with a total potential GDV of approximately RM78 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.
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