Tropicana rolled out Southplace 2 Shoppes & Residences at Tropicana Metropark
PETALING JAYA: Tropicana Corp Bhd
posted a pre-tax profit of RM76.1mil for its second quarter ended June 30, (2Q24) compared to RM1.8mil in 2Q23 on higher progress billing, unrealised gain on quoted shares and lower finance cost.
The higher profit generated and the reduction in gearing have strengthened the Group’s financial position with its gross gearing ratio easing from 0.74 times as of Dec 31, 2023 to 0.65 times as of end June.
Revenue in the quarter of RM384.7mil was 17.2% lower on-year due 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, the company stated in a release yesterday.
Excluding land sales, Tropicana's property development segment performed better in 2Q24 supported by higher progress billings across key projects in the Klang Valley, Southern and Northern regions.
For the first half of 2024 (1H24), it recorded a significantly higher pretax profit of RM98.3mil compared to RM2.6 million in 1H23 helped by higher progress billings, recognition of unrealised gains on quoted shares, and lower finance costs resulting from lower gearing level.
"In FY24, we have an interesting mix of residential or commercial developments worth an estimated gross development value (GDV) of RM4bil. Our financial position will also strengthen with the handover of six 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,” Tropicana stated in its release.
With unbilled sales of RM2.3bil and landbank of 1,842 acres with an estimated GDV of RM120bil, the group noted it is in a good position to deliver sustainable performance over the next few years.
