property

Tropicana aims to return to profitability this year through increased unbilled sales and new launches

Tropicana Corp Bhd aims to return to profitability in the fiscal year 2023, supported by the company's strong unbilled sales of RM2 billion as of December 31, 2022 (FY2022).

According to Joanne Lee, the company's deputy chief executive officer, the 33 per cent increase (RM1.5 billion in FY2021) in unbilled sales was driven by launches in its residential, commercial, and resort-themed developments.

She said that the company will continue to unlock its landbank, offering six new ventures totaling RM2.4 billion in gross development value this year, which would help drive its future earnings.

According to her, the company's property investment, recreation, and resort segments have been steadily improving, resulting in higher revenue for FY2022.

Tropicana reported greater revenue of RM1.01 billion, up RM138.5 million or 15.8 per cent from the previous year (FY2021: RM876 million).

Lee attributed the higher revenue to greater progress billings across key projects in the Klang Valley and southern area, as well as more home sales.

The company, however, recorded a greater pre-tax loss of RM400.9 million compared to the previous year's pre-tax loss of RM36 million, mostly due to losses sustained on the proposed disposals of two parcels of development land.

Lee said that the company will maintain its revenue momentum by expediting launches and launching more inventive marketing and sales initiatives to promote higher sales.

"Digitalisation and online engagement became a big part of our marketing strategies, as these efforts have borne fruit," she said.

She said Tropicana is optimistic that there would be demand for properties in prime locations in its established, matured, and growing townships, with appealing pricing and unique ownership packages.

The company's overall landbank spans 2,091 acres, with a total potential GDV of about RM203.7 billion, leaving it in a good position to realise the value of its key land bank and achieve sustained performance in the coming years.

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