Tropicana Corp Bhd reported a loss of RM44.83 million for the nine months ended September 30, 2021, compared to a profit of RM61.85 million in the same period the previous year.
Revenue for the nine months was RM606 million, down from RM702.4 million in the same period last year, owing primarily to the company's property investment, recreation, and resort operations' poor performance.
Tropicana said in a filing with Bursa Malaysia yesterday that higher sales and progress billings across key projects in the Klang Valley and Southern Region accounted for the majority of the revenue.
The higher revenue in the first nine months of last year was due to the sale of two parcels of freehold development lands in Johor Bahru for RM241.8 million cash, while there were no land disposals during the period under review, it said.
"Excluding these said lands disposals, the revenue in the current period would have been higher by RM145.4 million which was contributed by higher sales and progress billings across key on-going projects in the Klang Valley and Southern Region which have picked up," it said.
Tropicana also stated that, despite posting a loss for the first nine months of its current fiscal year, its property development and property management division performed well, earning a profit of RM75.2 million for the period, thanks to strong sales and project cost savings.
Tropicana group managing director Dion Tan said in a statement that the Covid-19 outbreak had an impact on the company's business and that there was 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," he said.
Tan said that, while the lockdown harmed the company's property investment, recreation, and resort operations, these have gradually recovered.
"We still need to work very hard on our recovery plan. However, our property sales continue to soar and perform well," he said.
Despite the various stages of Movement Control Order, the group's property development and property management division continued to perform strongly and profitably, he said.
Tan said that property sales continue to soar and that the company is on track to meet its RM1.1 billion sales target for the current fiscal year.
Tropicana will continue to be market-driven in its product offerings, he said, while also unlocking the value of its land bank in strategic locations across the Klang Valley, Genting Highlands, and Southern Regions.
Tropicana will also continue to focus on introducing new phases across its signature and established developments, including Tropicana Heights, Tropicana Aman, Tropicana Metropark, Tropicana Uplands, and Tropicana Alma in Johor, he said.
Tropicana's unbilled sales increased by 39 per cent to RM1.2 billion (Q3 FY2020: RM800 million), fueled by its residential, commercial, and resort-themed developments.
Tropicana's total landbank amounted to 2,452 acres, with a total potential gross development value of approximately RM152.2 billion.
The massive landbank positions the company well to unlock the value of its strategic land bank and deliver sustainable earnings in the coming years.