PETALING JAYA: Property developer Tropicana Corporation Bhd (Tropicana) remains cautiously optimistic about the group’s growth, mindful of the pandemic outbreak’s challenges. Its group managing director Dion Tan said: “We are closely monitoring our key performances and are cautiously optimistic of all our projects’ potential, especially those located in strategic regions.
“Our Tropicana 100 campaign is drawing a steady flow of interests, signalling a gradual recovery in the property market.” Tan said the organisation would continue to progress by maintaining stringent cost-efficiency measures, digital realignments, and careful rationalisation of launches to build a more resilient and agile corporation.
In a filing to Bursa Malaysia, Tropicana announced its unaudited financial results for the fourth quarter ended Dec 31, 2020. For the period under review, the group recorded a revenue of RM356.7mil, which was RM23.8mil or 6.3% lower, compared with RM380.5mil registered in the corresponding quarter last year.
For the financial year ended Dec 31, 2020, the group revenue stood at RM1.06bil, recording a slight dip of 6.8% or RM76.8mil lower when compared with RM1.14bil posted in the corresponding period in the preceding year. The decrease in revenue in the current quarter reflected lower progress billings across some of the group’s key existing on-going projects and lower sales due to the pandemic.
Development activities were halted temporarily upon the enforcement of various movement restriction rulings set by the government. The group’s profit before tax for the Q4 of 2020 was lower by RM133.5mil or 51.9% as compared to the corresponding quarter in the preceding year.
The group’s PBT for the year ended Dec 31, 2020, was recorded at RM238.7mil, which was RM128.8mil or 35.0% lower when compared to the corresponding period in the preceding year. This was mainly due to the recognition of the negative goodwill which arose when the company acquired development lands held by 12 companies from a related party.
Despite the market conditions, the group has recently rewarded its shareholders with dividends paid by way of distribution of 4.5 treasury shares for every 100 existing shares held in the group.
For the financial year 2020, the group rolled out a series of new developments with a total GDV of approximately RM700mil across its signature Tropicana townships. Overall, Tropicana’s total landbank stood at 2,144 acres with a total potential GDV of approximately RM78bil, placing the group in a good position to unlock its strategic land bank’s value and deliver sustainable earnings in the next few years.