KUALA LUMPUR (Nov 30): Tropicana Corp Bhd posted a net loss of RM37.41 million for the third quarter ended Sept 30, 2021 (3QFY21) against a net profit of RM14.51 million it made for the corresponding quarter a year ago, as movement restrictions imposed to curb the spread of Covid-19 disrupted its business operations.
In a statement, the group said the various stages of movement control order negatively impacted its property investment, recreation and resort operations during the quarter.
Group revenue dropped 23.89% to RM170.46 million from RM223.97 million, which the property developer said reflected lower progress billings across some of its key ongoing projects, as well as lower sales following the full lockdown that came into force on June 1.
For the nine months ended Sept 30 (9MFY21), the group reported a net loss of RM60.11 million, versus a net profit of RM43.95 million in the same period last year, as revenue declined 13.73% to RM605.96 million from RM702.37 million.
Tropicana’s group managing director Dion Tan shared that despite the movement restrictions and unprecedented times, the group’s property sales performed well.
“This is a spillover effect from various restriction movements. The pandemic caused disruption and delays in the rollout of our new projects, as well as ongoing projects. The lockdown has also negatively impacted our property investment, recreation, and resort operations and while these businesses have slowly picked up, we still need to work very hard on our recovery plan.
“However, our property sales continue to soar and perform well, all thanks to the amazing commitment and support from our team. We will continue to monitor the market, and roll out more engagement initiatives to drive more sales,” Tan added.
Tropicana, whose property sales jumped 73.8% to RM760.6 million for 9MFY21 from RM437.6 million a year ago, said the group is on track to achieve its RM1.1 billion annual sales target.
Moving forward, the group said it will continue to focus on being market-driven in its product offerings, whilst continuing to unlock the value of its landbank at strategic 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 and Tropicana Alma in Johor, it added.
Tropicana’s unbilled sales stood at RM1.2 billion in 3QFY21, backed by its unique residential, commercial and resort-themed developments.
Overall, Tropicana’s total landbank stood at 2,452 acres, with a total potential gross development value (GDV) of RM152.2 billion, placing the group in a good position to unlock the value of its strategic landbank and deliver sustainable earnings in the next few years.
Shares in Tropicana closed up two sen or 1.92% to RM1.06 on Tuesday (Nov 30), giving the group a market capitalisation of RM1.56 billion.