Tropicana Registers Higher Q2 Profit 

Tropicana Registers Higher Q2 Profit

● Tropicana Group’s profit before tax rose to RM76.1 million in Q2 2024, compared to RM1.8  million in Q2 2023. 

● Tropicana’s financial position continues to strengthen, with gross gearing level reduced from 0.74 times as of 31 December 2023 to 0.65 times as of 30 June 2024. 

● The Group’s unbilled sales stood at RM2.3 billion placing the Company in a comfortable  position to deliver sustainable earnings. 

In a filing to Bursa Malaysia, Tropicana Corporation Berhad  (“Tropicana” or “Group”) announced its unaudited financial results for the second quarter  ended 30 June 2024 (“Q2 2024”). The Group’s profit before tax (“PBT”) for Q2 2024 rose to  RM76.1 million compared to RM1.8 million in the corresponding quarter last year, mainly due  to higher income as a result of higher progress billing, unrealised gain on quoted shares and  lower finance cost following the Group’s debt reduction initiatives. The higher profit  generated and the reduction in gearing have strengthened the Group’s financial position,  improving the gross gearing ratio from 0.74 times as of 31 December 2023 to 0.65 times as of  30 June 2024. 

The Group recorded revenue of RM384.7 million in Q2 2024, a 17.2% decrease compared to  the corresponding quarter in the preceding year (Q2 2023: RM464.5 million). The lower  revenue for Q2 2024 is primarily attributed to the absence of revenue from St. Joseph’s  Institution International School and W Kuala Lumpur which were disposed in September 2023  and January 2024, respectively, as well as lower land sale proceeds. Nevertheless, excluding  land sales, the property development segment performed better in Q2 2024 compared to Q2  2023, supported by higher progress billings across key projects in the Klang Valley, Southern  and Northern regions. For the first half (“1H”) of 2024, the Group recorded a significantly  higher PBT of RM98.3 million compared to RM2.6 million in 1H 2023. The stronger  performance was due to the higher progress billings, recognition of unrealised gains on  quoted shares, and lower finance costs resulting from lower gearing level. 

The management cited that the Group’s continued focus and performance-driven initiatives have demonstrated results across its key business segments, “As sustainable community  planners, we focus on future-proofing our business through effective marketing and sales  campaigns, engagement with our stakeholders and delivery of quality properties on time.”

“In FY2024, we have an interesting mix of residential or commercial developments worth an  estimated GDV of RM4 billion. Our financial position will also strengthen with the handover  of 6 vacant possessions this year from Tropicana Aman, Tropicana Miyu, Tropicana Metropark,  and Tropicana Uplands. We are also enhancing our digital and customer loyalty segment,  offering more benefits and rewards to our purchasers and business partners,” the  management added. 

Tropicana will continue to gain traction in the market with these signature developments  worth an estimated GDV of RM4 billion: 

1. Varia Shop Offices, Tropicana Aman @ Kota Kemuning 

2. Avisa Terrace Homes, Tropicana Alam @ Puncak Alam  

3. Serviced Residences & Retail Shoppes, Lido Waterfront Boulevard @ Johor 4. Fraser Heights Terrace Homes, Tropicana Uplands @ Johor 

5. Beachwalk Shoppes, Tropicana Cenang @ Langkawi 

Delivering on its promise, Tropicana has completed and delivered the Vacant Possession for  the following projects in FY2024: 

1. Freesia Residences, Tropicana Aman @ Kota Kemuning 

2. Gemala Residences, Tropicana Aman @ Kota Kemuning 

3. Aster Heights Terrace Homes, Tropicana Uplands @ Johor 

In the pipeline, Tropicana will be completing these 3 projects and ready for the delivery of  Vacant Possession by Q4 2024: 

1. SouthPlace Residences, Tropicana Metropark @ Subang Jaya 

2. Tropicana Miyu Condominiums @ Petaling Jaya 

3. Hana Residences, Tropicana Aman @ Kota Kemuning 

With Tropicana’s high unbilled sales of RM2.3 billion and a sizeable landbank of 1,842 acres  with an estimated GDV of RM120 billion, the Group is in a good position to deliver sustainable  performance in the next few years.

Tropicana has a sizeable landbank in the booming Johor market. One of its star  developments is the vibrant Lido Waterfront Boulevard fronting the beautiful straits of Johor 

With the successful 100% take-up of SouthPlace Residences, Tropicana rolled out SouthPlace  2 Shoppes & Residences fronting the sprawling 9.2-acre urban park at Tropicana Metropark 

Currently under construction, Edelweiss Serviced Residences, SOFO and Shoppes will be  ready by 2025

Avisa Residences at Tropicana Alam is picturesque with a peaceful lake view making it the  perfect location for family life 

-END-

Please share with people you care. You can get daily updates too.

Sign up for daily investment news updates (FREE since Nov 2013 and FOREVER). 

Alternatively, Follow me on Telegram here.

Please LIKE kopiandproperty.com FB page to get daily updates about the property market beyond kopiandproperty.com articles.