KUALA LUMPUR (Feb 28): Tropicana Corp Bhd (KL:TROP) returned to profitability in the fourth quarter ended Dec 31, 2024 (4QFY2024), as revenue surged 41.1% year-on-year (y-o-y) to RM520.9 million, driven by higher progress billings and land disposals.

The group posted a net profit of RM224.54 million, reversing from a net loss of RM158.92 million in 4QFY2023, its bourse filing on Friday showed.

The surge in revenue was supported by key projects in the Klang Valley — both southern and northern regions — alongside the completion of land disposals in Gelang Patah, Johor worth RM185.3 million.

Quarter-on-quarter (q-o-q), revenue jumped 158% from RM201.8 million in 3QFY2024, while the group turned around from a net loss of RM454.93 million in the preceding quarter. The q-o-q improvement was attributed to higher progress billings at advanced project stages and savings from low-cost housing obligations transferred to land buyers.

Earnings per share came in at 9.99 sen for 4QFY2024, compared with a loss per share of 7.3 sen in 4QFY2023 and a loss per share of 20.07 sen in 3QFY2024. The company did not declare any dividend for the quarter.

For the full year, however, Tropicana recorded a widened net loss of RM195.91 million from RM174.19 million in FY2023, largely due to one-off losses from the divestment of investment properties. Without this, the group would have reported a profit before tax of RM172.7 million.

Tropicana expressed optimism for 2025, supported by its RM2.2 billion of unbilled sales and 1,877-acre landbank with a gross development value of RM109 billion.

The group plans new launches across the Klang Valley, Genting Highlands, Johor and Langkawi, while expecting improved sales from its Johor properties, boosted by the Johor-Singapore Special Economic Zone and the Rapid Transit System (RTS) link.

Despite global inflation and market volatility, Tropicana remains confident in sustained demand for properties in prime locations, especially with Malaysia’s Overnight Policy Rate held at 3%, fostering a conducive environment for homebuyers and investors.

Tropicana’s shares closed unchanged at RM1.14 on Friday for a market capitalisation of RM2.87 billion. The stock has dropped more than 10% year-to-date.