Tropicana third quarter net profit slightly up

PETALING JAYA: Property group Tropicana Corp Bhd’s net profit improved marginally by 2% to RM35.49mil in the third quarter ended Sept 30 from RM34.8mil a year ago.

Revenue was up 29% at RM463.47mil from RM357.08mil in the previous corresponding period on higher progress billings from advanced stages of construction work for most of the group’s ongoing projects.

This translated to an earnings per share of 2.43 sen from 2.44 sen previously.

For the nine-month period, meanwhile, the group saw a higher net profit of RM120.86mil from RM83.28mil a year ago on the back of a 29% hike in revenue to RM1.29bil from RM1bil.

This was also due to more advanced progress of projects, resulting in higher progress billings across projects in the Klang Valley and northern region.

Tropicana told the stock exchange that profit before tax was lower by RM4.4mil during the current quarter compared with the corresponding quarter in the preceding year.

“Operational profits have improved by RM30.3mil, which is 56.9% higher, due to cost savings and advanced progress of projects.

“However, this was offset by a RM34.7mil loss arising from the sale of a piece of development land,” Tropicana said.

Going forward, Tropicana expects the overall prospects for the industry to be challenging, but believes that demand still exists for properties in prime locations with accessibility to good amenities and attractive pricing.