Tropicana Corp's 3Q Net Loss Surges To RM454.93 Mln

KUALA LUMPUR, Nov 27 (Bernama) -- Tropicana Corporation Bhd’s net loss surged to RM454.93 million in the third quarter (3Q) ended Sept 30, 2024, from RM10.34 million net loss recorded in the same period last year.

In a filing with Bursa Malaysia today, it said the decrease in profitability was mainly attributed to the recognition of one-off losses which arose from the proposed disposal of investment property and three parcels of development lands for a total consideration of RM891.6 million.

“These proposed disposals have given rise to a provision for foreseeable losses of RM474.8 million, which resulted in this quarter’s result being weaker than the corresponding quarter in the preceding year.

“The provision of foreseeable losses arose from the land disposal will eventually be mitigated by the cost savings from low-cost housing obligation, which will be recognised progressively over the next five years, and this will contribute to future earnings of the group,” it said.

Tropicana said its revenue in 3Q decreased by 49.9 per cent to RM201.87 million from RM402.76 million previously, primarily due to lower progress billings across key projects in the Klang Valley and the southern and northern regions.

“The decline in revenue was also attributed to lower sale consideration related to the disposal of development land compared to the corresponding quarter in the preceding year.

“On the property investment, recreation and resort operation, there was no revenue generated from St. Joseph’s Institution International School Malaysia and W Kuala Lumpur subsequent to the completion of disposals in September 2023 and January 2024, respectively, which resulted in lower revenue,” it noted. 

For the nine months of the financial period ended Sept 30, 2024, the group recorded a revenue of RM877.84 million, which was RM246.2 million or 21.9 per cent lower compared to RM1.12 billion a year ago, mainly due to absence of revenue subsequent to the completion of the divestment of investment properties.

On prospects, Tropicana said it will continue to leverage its various sales initiatives and marketing campaigns to secure more sales and, therefore, remain positive and confident about the long-term prospects of its property development business.

“In addition, the group will continue to develop and market its properties located at various strategic locations, which will, in turn, translate into higher sales and positive contributions to its future earnings,” it added. 

-- BERNAMA