PETALING JAYA: Tropicana Corp Bhd posted a net profit of RM7.94 million in the fourth quarter ended Dec 31, 2021 versus RM47.53 million a year ago due to the absence of land disposals in the current quarter.
The group’s Q4’21 revenue slipped 26.8% to RM263.8 million, which was RM96.4 million lower when compared to the corresponding quarter in the preceding year.
For the full year, it saw a net loss of RM52.17 million compared with a net profit of RM91.31 million due to the absence of gains arising from the sale of the four parcels of development lands amounting to RM236.0 million.
It recorded revenue of RM869.72 million, which was RM192.9 million lower when compared to the preceding year due to the absence of land disposals in the current year. Higher revenue in the preceding year reflected the completion of the disposals of four parcels of freehold development lands in Johor Baru for RM399.2 million cash. Excluding these land disposals, the revenue in the current year would have been higher by RM206.3 million which was contributed by higher property sales and progress billings across ongoing key projects in the Klang Valley and Southern region.
Despite this, the group’s property development and property management division still performed strongly with profits of RM77 million for the period which was backed by strong sales and cost savings from projects.
Tropicana saw 62.4% higher property sales of RM1.3 billion for FY21.
Group managing director Dion Tan cited that the surge of property sales in 2021 is marked by pent-up demand post-lock down and gradual economic recovery.
“The market is slowly bouncing back, and we saw a higher pick-up in property sales transactions before the end of HOC. Our property investment, recreation, and resort operations have slowly regained their pace as well. Our property sales continue to soar. We will continue the good momentum, accelerate our launches, and roll out more innovative marketing and sales campaigns to drive more sales. Digitalisation and online engagement became a big part of our marketing strategies, as these efforts have borne fruit.
“We also hope the government will introduce more innovative homeownership packages to spur the market.” he said.
Although the industry remains challenging in the short term, the group 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 and offerings. Therefore, the group will continue to focus on being market-driven in its product offerings whilst continuing to unlock the value of its land bank at locations across the Klang Valley, Genting Highlands, and Southern Regions.
Tropicana will also continue to focus on the introduction of new phases across its signature and established developments namely Tropicana Heights, Tropicana Aman, Tropicana Metropark, as well as Tropicana Uplands, Tropicana Alma, and the first Tropicana Industrial Park in Johor. New developments in Genting Highlands and Langkawi are expected to anchor and provide a major impetus to the group’s future growth, marked by the recent launch of Tropicana Journey Collection that showcases Tropicana Grandhill homes-by-the-hill and Tropicana Cenang homes-by-the-sea development.
For the period under review, Tropicana’s unbilled sales were up by 36% to RM1.5 billion, backed by its unique residential, commercial and resort-themed developments. Overall, Tropicana’s total landbank stood at 2,452 acres with a total potential GDV of RM152.2 billion, placing the group in a good position to unlock the value of its landbank and deliver sustainable earnings in the next few years.
