Established property developer Tropicana Corporation Berhad announced its unaudited financial results for 2021 third-quarter showing a rather stressed 3month despite posting higher property sales of RM760.6 million.
Recording an impressive jump of 73.8% in sales could not keep the company in positive territory as its overall Q3 FY2021 revenue slipped 23.9% to RM170.5 million versus RM224 million recorded in 2020 this poor result led to a loss before tax of RM31 million for the quarter. Tropicana attributes this to the weak performance of the Group’s property investment, recreation, and resort operations due to the Covid-19 outbreaks and enforcement of the various stages of Movement Control Order by the Malaysian government.
Dion Tan, Tropicana’s Group Managing Director shared “This is 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. The lockdown has also negatively impacted our property investment, recreation, and resort operations and while these businesses have slowly picked up, we still need to work very hard on our recovery plan.”
For the financial period ended 30 September 2021, the Group recorded revenue of RM606 million, contributed by higher sales and progress billings across key projects in the Klang Valley and Southern Region. The Group’s LBT was recorded at RM55.6 million and despite the loss for the period, the Group’s property development and property management division still performed strongly and made profits of RM75.2 million for the financial period which were backed by strong sales and cost savings from projects. The company claims its property sales are on track to achieve its RM1.1 billion sales target.
