Loss Of IDR 8.89 Trillion In 2020, Mochtar Riady's Son Believes That Lippo Karawaci's Performance Will Improve This Year

Illustration. (Photo: Doc. Lippo Karawaci)

JAKARTA - Property development company owned by conglomerate Mochtar Riady, PT Lippo Karawaci Tbk is optimistic that it will be able to improve its performance this year after experiencing losses of up to IDR 8.89 trillion in 2020. The confidence of the issuer coded as LPKR shares was in line with the increase in sales.

Lippo Karawaci CEO John Riady said that even though it was hit by the COVID-19 pandemic, 2020 was a good year for the company's property business, where pre-sales revenue reached IDR 2.67 trillion, up 45 percent (YoY).

"In 2020, the turning point in the property business is validated by the successful launch of the unit at Lippo Village. All units offered at the launch event will expire within a few hours", said Mochtar Riady's son in a press release, quoted on Thursday, May 20.

In the recurring income line, Siloam Hospital under PT Siloam International Hospitals Tbk (SILO) shows strong EBITDA growth supported by improved margins, thanks to the help of doctors and nurses who are at the forefront of dealing with COVID-19.

"Even though our other recurring income businesses have been badly affected by the COVID-19 pandemic, we are starting to see a near-normal business and life recovery", said John.

In 2021, LPKR is targeting pre-sales of IDR 3.5 trillion which is expected to be achieved with the launch of several new landed houses.

For information, LPKR's revenue fell 3 percent YoY to IDR 11.97 trillion in 2020 from IDR 12.32 trillion in 2019, with a gross profit of IDR 4.29 trillion in 2020, down compared to IDR 4.60 trillion in the previous year.

Lippo Karawaci also recorded a net loss of IDR 8.89 trillion in 2020, compared to the previous net loss of IDR 1.98 trillion. LPKR posted a 2020 EBITDA of IDR 1.90 trillion, growing 47 percent compared to the previous year IDR 1.30 trillion.

EBITDA growth will have a positive impact of IDR633 billion on 2020 income. Various stimuli from the property industry from the government, such as cutting Value Added Tax (VAT) and easing loans to value (LTV) are considered to be beneficial for LPKR.