In a filing to Bursa Malaysia, property developer Tropicana Corporation Berhad announced its unaudited financial results for the fourth quarter (Q4) ended Dec 31, 2021.
The Group recorded sales of RM1.3 billion for the financial year ended Dec 31, 2021 (FY2021) which was 62.4% higher than FY2020’s sales of RM802.4 million.
The Group recorded revenue of RM869.7 million in FY2021, which was RM192.9 million lower when compared to the preceding year.
The higher revenue in the preceding year was attributed to the disposals of four parcels of freehold development lands in Johor Bahru, for a total cash consideration of RM399.2 million whereby there were no land disposals in the current year.
Excluding these said 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.
The Group’s overall Q4 FY2021 revenue slipped 26.8% to RM263.8 million (Q4 FY2020: RM360.2 million) which was RM96.4 million lower when compared to the corresponding quarter in the preceding year.
The Group’s fourth quarter (Q4, FY2021) profit before tax (PBT) was lower by RM102.9 million or 83.5% as compared to the corresponding quarter in FY2020. The lower profit was due to absence of land disposals during the quarter whereby in Q4 FY2020 there were disposals of two parcels of freehold development lands in Johor Bahru, for a total consideration of RM157.4 million.
For the period under review, Tropicana’s unbilled sales were up by 36% to RM1.5 billion (Q4 FY2020: RM1.1 billion), backed by its unique residential, commercial and resort-themed developments.
Tropicana Group managing director Dion Tan said the surge of property sales in 2021 were marked by pent-up demand post-lockdown and gradual economic recovery.
“We saw a higher pick-up in property sales transactions on the remaining months of the nationwide Home Ownership Campaign. Our property sales continue to soar, all thanks to our team’s amazing commitment and support.
“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.” he said.
For the financial year ended Dec 31, 2021, the Group recorded a loss before tax (LBT) of RM35.2 million, which was RM273.6 million lower when compared to the preceding year, which had gains arising from the sale of four parcels of development lands amounting to RM236.0 million whereby there were no sales of land in the current year.
Despite the loss for the year, the Group’s property development and property management division still performed strongly with profits of RM77.0 million for the period which was backed by strong sales and cost savings from projects.
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 strategic locations across the Klang Valley, Genting Highlands, and Southern Regions.
Tropicana will 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.
Overall, Tropicana’s total landbank stood at 2,452 acres with a total potential gross development value (GDV) of approximately 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.
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