KUALA LUMPUR (Feb 27): Tropicana Corp Bhd managed to halve its net loss for its fourth quarter on a year-on-year basis, as it recorded lower expenses, and higher revenue and other income.

The group reported a net loss of RM158.92 million for the fourth quarter ended Dec 31, 2023 (4QFY2023), down 49.45% from the RM314.37 million net loss it incurred in 4QFY2022, as revenue more than doubled to RM390.46 million from RM186.19 million on higher progress billings across its key projects in the Klang Valley and southern and northern regions, its bourse filing showed.

"The losses incurred by the group in the current quarter were primarily a result of lower recognition on the net property development contribution from a project located in Klang Valley by our group’s 30%-owned associate company. Nonetheless, it is encouraging to note that the project continued to maintain its sales momentum," Tropicana said.

The group recognised higher losses from its share of results of an associate of RM73.49 million, compared with RM976,000 previously. The only 30%-owned unit listed in the group's latest annual report was Agile Tropicana Development Sdn Bhd, where the remaining 70% is owned by China’s Agile Group.

"Further, the group has continued with cost rationalisation measures resulting in a reduction of general and administrative expenses during the current quarter, which resulted in a lower loss," Tropicana said.

For its full FY2023, Tropicana narrowed its net loss to RM174.19 million, down 60% from RM435.59 million it recorded in FY2022, as revenue jumped 60.68% to RM1.51 billion from RM942.56 million on higher progress billings, while the group completed its land sales in Kota Kemuning, Kajang and Genting Highlands for a total of RM205.6 million in 3QFY2023.

It also noted that its property investment, recreation and resort segment saw significant improvements during the year, with increased occupancy rates in the hotels owned by the group.

Looking forward, Tropicana expects improved sales for its properties, especially the ones in Johor as a result of the Johor Bahru-Singapore Rapid Transit System Link project, while it believes demand will persist for properties in prime locations in its established, mature and developing townships that offer attractive pricing and promotions.

"Premised on the expected demand, the group will continue to launch its properties at strategic locations across the Klang Valley, Genting Highlands, [and] northern and southern regions. Moving forward, the group will also continue to launch new phases in its established development sites, namely Tropicana Aman, Tropicana Metropark and Tropicana Alam," it added.

Tropicana shares closed one sen or 0.79% lower at RM1.26 on Tuesday, giving the group a market capitalisation of RM2.9 billion.