KUALA LUMPUR: Tropicana Corporation Bhd's net profit surged to RM43.57 million in the second quarter ended June 30, 2024 (Q2 2024) from RM305,000 in Q2 2023 due to higher income as a result of higher progress billing.
The company said unrealised gain on quoted shares and lower finance cost following its debt reduction initiatives also contributed to the higher earnings.
"The higher profit generated and reduction in gearing have strengthened Tropicana's financial position, improving the gross gearing ratio from 0.74 times as of December 31, 2023 to 0.65 times as of June 30, 2024," it added.
Its revenue for the quarter under review, however, dropped to RM464.5 million from RM675.97 million a year ago attributed 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.
Nevertheless, excluding land sales, the property development segment performed better in Q2 2024 compared to Q2 2023, supported by higher progress billings across key projects in the Klang Valley, southern and northern regions.
For the first half of 2024 (1H24), the group recorded a turnaround in net profit at RM34.49 million versus a net loss of RM4.93 million in 1H23.
Its revenue for the period dropped to RM675.97 million from RM721.24 million in the same period last year.
"As sustainable community planners, we focus on future-proofing our business through effective marketing and sales campaigns, engagement with our stakeholders and delivery of quality properties on time.
"In FY2024, we have an interesting mix of residential or commercial developments worth an estimated gross development value of RM4 billion.
"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," said the company in a statement.