The Edge Financial Daily, 24 February 2014 – Tropicana corp achieves high earnings for fy13

The Edge Financial Daily, 24 February 2014

KUALA LUMPUR: Tropicana Corp Bhd has delivered a stellar set of earnings for financial year 2013 ended Dec 31 (FY13), with its net profit reaching new heights.

The property firm saw a 313% surge in net profit to RM256.5 million for its fourth quarter (4QFY13)from RM62.1 million in the previous corresponding period. Revenue rose 90% at RM444.7 million against RM234.4 million a year earlier.

It recorded its strongest earnings last year with a 112% surge in net profit from record high sales of RM2.16 billion. For FY13, the property developer saw its annual net profit ballooning to RM362.3 million from RM171.05 million a year earlier. Revenue more than doubled to RM1.47 billion compared with RM630.4 million previously.

Tropicana Corp said in a statement that its excellent performance last year was boosted by strong development sales over the past two years.

Key contributors to its performance are Tropicana Grande, Tropicana Avenue and Tropicana Gardens in the central region, as well as Tropicana Danga Bay in Iskandar Malaysia, Johor.

“Success in implementing its transformation strategy has enabled Tropicana to achieve key milestones in its development activities, with new sales in 2013 reaching a record high of RM2.16 billion,” said the group.

The group’s unbilled sales were at a high of RM2.18 billion as at the end of 2013, an improvement from RM952 million recorded in 2012.

“Going forward, the group plans to launch new projects across key regions in Greater Kuala Lumpur, Penang Island and Iskandar. Catering to current market demand, there will be greater emphasis on landed residential and township developments,” it said.

It added that prospects for the group remain robust, with new launches planned for 2014. The developer aims to sustain the high sales and unbilled sales enjoyed in the previous financial year.

The group has 2,268 acres (918ha) of landbank across key growth regions in the country with a total estimated gross development value of RM81.8 billion.

“There remains strong potential for unlocking value in [this] landbank and for Tropicana to sustain growth in its continuing focus to transform into a premier property group in Malaysia,” it said.