KUALA LUMPUR: Tropicana Corp Bhd
said foreseeable losses from its land disposal will eventually be mitigated by cost savings from low-cost housing obligation, which will be recognised progressively over the next five years.
The property developer said its revenue dropped 21.9% year-on-year to RM877.84mil in the nine months period to Sept 30, 2024, compared to the previous year due to the completion of the divestment of investment properties coupled with lower land sale proceeds in the current financial period.
"The divestment and land sale exercise were consistent with the group’s strategy to reduce overall debt level via assets monetisation," it said.
Tropicana recorded a net loss of RM420.45mil during the period under review, compared to a net loss of RM15.27mil in the year-ago period.
Excluding the one-off losses from the disposal of investment property and development land, the group said it would have recorded a higher pre-tax profit of RM38.9mil, a jump of 46.7% against the preceding year.
In the third quarter of the year alone, the group posted a net loss of RM454.93mil, compared to a net loss of RM10.34mil. Loss per share widened to 20.07 sen from 0.47 sen previously.
The group's revenue in the quarter under review contracted to RM201.87mil from RM402.76mil, primarily attributed to lower progress billings across key projects in the Klang Valley, Southern and Northern Regions.
Additionally, there was 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.
