Tropicana registers an improved financial performance for 2014/2015
Premier property developer Tropicana Corporation Berhad had announced its unaudited financial results for the third quarter which ended on 30 September 2015, with the Group having a recorded revenue of RM244.6 million or 18.7% decrease from some RM300.7 million during the same period in 2014. The substantial decrease in revenue was associated with lower work in progress in property development segment in the quarter under review as a number of the group’s projects were in the early stages of construction. Notwithstanding the decrease in revenue, the Group also achieved a significantly higher profit before tax (PBT) of around RM175.4 million for the quarter ended 30 September 2015, up 334% from RM40.4 million in the previous corresponding year. The higher PBT in the quarter under review was contributed by gains or profits from the disposal of investment properties and a subsidiary company. Net profit attributed to shareholders jumped approx. five-fold or a whopping 414% to RM151.8 million in the quarter under review, up from RM29.5 million in the same period last year.
For the past nine months ended 30 September 2015, group revenue increased by a marginal 10.9% to RM947.8 million from RM854.9 million in 2014. For the nine-month period, the group’s PBT rose 43.7% to RM242.4 million from RM168.7 million a year ago, whilst net profit attributable to shareholders was a significant 53.2% higher at RM194.2 million from RM126.8 million previously. Tropicana’s “de-gearing” initiatives are also producing results. In addition to that, the group’s financial position has strengthened considerably, with net gearing toward the end of September 2015 registering a marked improvement to 0.28x from 0.68x as of December 2014. Tropicana also received cash proceeds totalling RM1.07 billion arising from the strategic disposal of non-core assets and investment properties undertaken over the year. Its board of directors also declared a first interim dividend of 5 sen per share in lieu of financial year ending 31 December 2015.
Despite the property market slowdown, Tropicana delivered encouraging sales performance in the first nine months of its current financial year, chalking up new sales of RM1.3 billion with unbilled sales at a record of RM3.1 billion as at end-September 2015. The Group’s integrated mix township developments projects in the central region continue to draw healthy interest, especially for landed properties in Tropicana Aman (Shah Alam) and Tropicana Heights (Kajang), whereby new launches in the year to date attracted good take up rates from buyers. The Group is on track to exceed the previous financial year’s total sales of RM1.5 billion ending 31 December 2015. Moving forward, the Group believes there will still be demand for landed properties and integrated developments in good locations with great accessibility and attractive pricing.
Tropicana’s strategy for 2016 will continue to be market-driven and adapting to market demand while focusing to unlock the value of its land banks in Klang Valley, as well as those in the northern region. The Group possesses a sizeable land bank of over 1,600 acres across Malaysia with future GDVs in excess of RM50 billion. Together with unbilled sales and a strengthened balance sheet, the Group is strongly positioned to deliver sustained performance in the near future. Listed on Bursa Malaysia since 1992, Tropicana Corporation Berhad is involved in property & resort development, property investment, and manufacturing & investment holding.