26/08/2022
Tropicana Corp Bhd's growth will be aided by aggressive sales and partnership initiatives as well as the country's economy's ongoing recovery, says the company's senior managing director, Joanne Lee.
Tropicana launched several aggressive promotions this year, including Tropicana Power Up, Tropicana go-go FIT, and Multi-Million Mania, all of which received favourable reviews.
According to Lee, the Multi-Million Mania campaign drew 5,600 participants and produced RM524.2 million in real estate bookings, and RM10.7 million in retail sales at Tropicana Gardens Mall.
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Lee said that Tropicana will keep utilising this customer-focused marketing to increase sales and maintain confidence in the long-term prospects of the business.
"We will continue to develop and market Tropicana townships at various strategic locations, which are expected to contribute positively to the future earnings of the company, she said in a statement.
Tropicana will keep opening up its landbank and will be offering eight new initiatives with a gross development value of RM2.9 billion to speed up the company's expansion.
With a total potential GDV of RM203.7 billion and a total landbank size of 2,091 acres, Tropicana is well-positioned to realise the value of its key landbank and produce sustainable performance over the coming several years, Lee said.
She said that the company would keep releasing its landbank at key sites in the northern, southern, Klang Valley, and Genting Highlands.
"The company remains optimistic and believes that there will still be demand for properties in prime locations in Tropicana's established, matured, and developing townships, with attractive pricing and innovative ownership packages," Lee said.
Tropicana recently released its unaudited financial results for the second quarter ended June 30, 2022 (Q2FY2022).
A revenue of RM211.4 million was reported by the company, an increase of RM16.5 million or 8.4 per cent from the RM195 million earned in the same quarter the year prior.
The company's property investment, leisure, and resort operations improved as a result of the reopening of borders as of April 1, 2022, which contributed to the higher revenue.
Despite the increase in revenue, the company reported a pre-tax loss of RM61.5 million as opposed to a pre-tax loss of RM43.5 million in the same quarter the year prior.
The majority of the projects are in the early to mid-stages of construction, and this is mostly owing to lower progress billings across key projects in the Klang Valley and southern area, Tropicana said.
Despite recording increased sales during the period, Tropicana's revenue for the fiscal year that ended June 30, 2022, was RM434.7 million, down RM800,000 from the equivalent period the previous year.
The company said that because most of the projects are in the early to mid-stages of construction, the minor decline in revenue was mostly attributable to decreased progress billings across important projects in the Klang Valley and in the southern area.
The company's pre-tax loss was RM97 million as opposed to RM24.1 million in the equivalent period the year prior, mostly as a result of decreased progress billings as noted above.
Despite the period loss, the company's real estate investment, leisure, and resort businesses have performed significantly better as a result of the reopening of borders to travellers from all nations beginning on April 1, 2022.
