KUALA LUMPUR (Aug 27): Tropicana Corporation Bhd (KL:TROP) remained loss-making in its second-quarter report on Thursday, as the property developer recorded sharp increases in cost of sales and tax expenses, which offset a jump in quarterly revenue.

It logged a net loss of RM12.7 million for the quarter ended June 30, 2026 (2QFY2026) — its fourth consecutive loss-making quarter — as opposed to a net profit of RM1.25 million for 2QFY2025. Cost of sales jumped to RM741.66 million from RM247.55 million, while tax expenses rose to RM39.41 million from RM169,000.

Together, they eclipsed the 157.68% surge in revenue to RM850.77 million from RM330.18 million that was driven largely by the sales of three land parcels in Johor and Selangor for a total of RM513.8 million.

Stripping out the land sales, Tropicana said revenue from its core operations rose during the quarter, mainly due to the delivery of vacant possession for projects in Tropicana Indah, Kota Damansara, as well as Tropicana Cenang, Langkawi.

Profit before tax doubled to RM21.88 million from RM10.65 million, as the group saw higher progress billings across several key projects in the Klang Valley and southern regions of Peninsular Malaysia, coupled with the delivery of vacant possessions.

For the six months ended June 30, 2026 (1HFY2026), Tropicana posted a net loss of RM35.82 million, compared to a net profit of RM2.56 million a year earlier, even as revenue rose 97.2% to RM1.16 billion from RM590.54 million. The drop in cumulative earnings was primarily due to an income tax expense as opposed to a tax credit a year ago, higher finance costs, and an unrealised fair value loss on quoted shares as opposed to a gain previously.

No dividend was proposed with the latest earnings report.

Tropicana said it had continued to strengthen its balance sheet and optimise its capital structure during the period, with total borrowings declining by RM109.22 million or 3.97% to RM2.64 billion as at June 30, 2026, from RM2.75 billion as at end-December 2025.

The group’s unbilled sales stood at RM1.40 billion as at end-June. Land bank totalled 1,349.7 acres, with potential gross development value (GDV) of RM102.6 billion.

Looking ahead, Tropicana said it will remain focused on improving its sales performance, advancing ongoing developments, managing costs and monetising selected assets where appropriate, amid prevailing market conditions. “Moving forward, Tropicana continues to progress its current developments across Malaysia, while preparing upcoming new developments with a GDV of RM1.9 billion in 2026 and 2027,” the group said in a statement.

Tropicana shares edged up one sen or 0.83% to close at RM1.21 on Thursday, giving the group a market capitalisation of RM3.04 billion.