Tropicana Corporation Berhad: A Resilient Performance Amidst Market Challenges

In a remarkable display of resilience, Tropicana Corporation Berhad has reported a second consecutive profitable quarter in the first quarter of FY2025. The Malaysian property developer, listed on Bursa Malaysia, posted a net profit of RM1.32 million for the quarter ended March 31, 2025, a significant turnaround from the RM9.08 million net loss recorded in the same period the previous year. This financial recovery is primarily attributed to a substantial tax credit of RM6.63 million, which played a pivotal role in offsetting the company’s expenses.

Despite the positive net profit, Tropicana faced a 10.61% year-on-year decline in quarterly revenue, dropping to RM260.36 million from RM291.28 million in the previous year. This decrease is largely due to lower recurring income following the completion of several investment property disposals. However, the company managed to reduce its finance costs to RM31.49 million, down from RM43.9 million a year ago, showcasing effective cost management strategies.

Looking ahead, Tropicana remains optimistic about its future prospects. The company’s current land bank stands at 1,336.1 acres, with a potential gross development value (GDV) of RM168.4 billion. Unbilled sales are robust at RM2.1 billion, positioning Tropicana to sustain market traction. The company is actively pursuing eight ongoing and upcoming projects with an estimated GDV of RM6.2 billion. These projects include Varia Shop Offices at Tropicana Aman in Kota Kemuning, Avisa Terrace Homes at Tropicana Alam in Puncak Alam, and Breeze Hill Shoppes & Serviced Apartments at Tropicana Avalon in Tropicana WindCity, Genting Highlands.

Tropicana’s strategic focus extends to leveraging catalyst projects and government initiatives in Johor, such as the Johor-Singapore Special Economic Zone and the Johor Bahru-Singapore Rapid Transit System Link project. These initiatives are expected to drive demand for properties in prime locations, particularly in Johor, where the potential resuscitation of the High Speed Rail project could further stimulate growth.

Despite the challenges posed by new US tariffs, which have subjected Malaysia to a 24% tariff rate, Tropicana remains confident in its ability to navigate the market landscape. The company’s proactive approach to sales initiatives and marketing campaigns is expected to secure more sales and maintain its positive trajectory.

In summary, Tropicana Corporation Berhad has demonstrated a commendable ability to adapt and thrive amidst market challenges. With a strong land bank, significant unbilled sales, and strategic projects in the pipeline, the company is well-positioned to sustain its earnings and continue its growth trajectory in the coming years.