PETALING JAYA: Tropicana Corp Bhd posted a 13.6% year-on-year drop in net profit to RM14.5mil for its third quarter ended Sept 30 due to lower progress billings in some existing ongoing projects, and lower sales as a result of the Covid-19 pandemic.
For the quarter under review, revenue was 9% lower year-on-year to RM224 million.
For the nine months under review, the group posted a 56.8% year-on-year drop in net profit to RM44mil while revenue was 7% year-on-year lower to RM702.4mil, mainly due to lower sales and progress billings across projects in the Klang Valley as well as the Southern Regions which were affected by the movement control orders.
In a Bursa filing, the group also noted that its property investment, recreation and resort operations also posed a loss of RM40.7 million during the nine months under review.
Regarding the near-term outlook, the group said despite stimulus measures such as the Home Ownership Campaign 2020 and interest rate cuts, the property market is expected to remain soft for the remainder of 2020 in light of the economic uncertainties brought by the Covid-19 pandemic.
In a statement, the group said this year, it had rolled out a series of new developments with a total gross development value (GDV) of RM695 million across its signature Tropicana townships.
The new launches include Tropicana Miyu condominiums at Petaling Jaya and Shoppes & Residences (South), a mixed development comprising retail lots, and serviced apartments at Tropicana Metropark, Subang Jaya.
It also continues to record an excellent uptake for Edelweiss SOFO and serviced residences, the fifth and final tower of its signature Tropicana Gardens development.
In the pipeline, the group plans to launch its first integrated master-planned development in Genting Highlands, Pahang, known as Tropicana Grandhill, and Summit Commercial Hub, Tropicana Uplands in Gelang Patah, Johor.
For the quarter under review, Tropicana’s unbilled sales were RM846.6mil.
The group’s total landbank stood at 2,344 acres, with a total potential GDV of RM80bil.
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