The Malay Mail, 24 February 2014 – Tropicana net profit surges 112 percent to RM362.3mil

The Malay Mail, 24 February 2014

PROPERTY developer Tropicana Corporation Bhd yesterday announced its financial results for the financial year ended Dec 31, last year.

For the fourth quarter under review, Group revenue increased 90% to RM444.7 million from RM234.4 million a year ago. The Group registered strong growth in profit before tax (PBT) of 399% to RM325.2 million, whilst net profit attributable to shareholders surged 313% to 256.5 million from RM62.1 million reported in the previous corresponding quarter.

For the full financial year ended Dec 31, last year, Group revenue rose 134% to RM1,475.5 million as compared to RM630.4 million achieved in financial year 2012. Consequently, Group PBT rose 123.9% to RM503.6 million from RM224.9 million previously, whilst net profit attributable to shareholders gained 112% to RM362.3 million in the year under review. Tropicana's stellar performance in 2013 was boosted by strong development sales over the past two years, with key contributing development projects including Tropicana Grande, Tropicana Avenue and Tropicana Gardens in Central Region, and Tropicana Danga Bay at Iskandar Malaysia.

Success in implementing its transformation strategy has enabled Tropicana to achieve key milestones in its development activities, where new sales in 2013 reached a record high of RM2.16 billion. Ongoing projects and new launches across key central, southern and northern regions enjoy strong response from buyers. Consequently, the Group's unbilled sales at the end of 2013 was TROPICANA: Marked improvement from RM952 million recorded as at the end of 2012 sustained at a high of RM2.18 billion, a marked improvement from RM952 million recorded as at the end of 2012.

Going forward, the Group plans to launch new projects across key regions in Greater KL, Penang Island and Iskandar Malaysia, Johor. Catering to current market demand, there will be a greater emphasis on landed residential and township developments. Fairfield Residences, which was launched in mid-February, received strong response with 62% of its units taken up over the first weekend of launch. The project, comprising of 2 and 3-storey terrace houses with estimated GDV of RM252 million, is part of Tropicana Heights, a mixed development on 199 acres of freehold land in up and coming residential hotspot Kajang.

Tropicana is also planning the maiden launch at Tropicana Aman, an integrated township development on 1,172 acres previously known as Tropicana Canal City. The anticipated first phase targeted for launch in second half of 2014 will comprise of terrace houses with estimated GDV of RM572 million.

Drawing on the strength of Tropicana's development DNA, with emphasis on location, accessibility, innovative designs, security, efficient space utilisation, and creating community of short distances, the Group is confident that its new projects will continue to be well received.

Prospects for the Group remain robust. With the new launches planned for 2014, Tropicana aims to sustain the high sales and unbilled sales enjoyed in the last financial year. The Group's 2,268 acres of landbank across the key growth regions in Malaysia, with total estimated GDV of RM81.8 billion, is strategic and prime. There remain strong potential for unlocking value in these landbanks, and for Tropicana to sustain growth in its continuing focus to transform into a premier property group in Malaysia-.