Lippo Karawaci, Company Owned By Conglomerate Mochtar Riady Earns Profit Of Rp255 Billion In First Quarter From Previously Loss Of Rp2.11 Trillion

Illustration. (Photo: Doc. Lippo Karawaci)

JAKARTA - The rise of the property sector in the first quarter of this year has become a blessing for PT Lippo Karawaci Tbk. The proof is that the issuer codenamed LPKR was able to return to a net profit in the first quarter of 2021.

In LPKR's financial report published on the Indonesia Stock Exchange (IDX) website, quoted on Wednesday, June 16, this company owned by the conglomerate Mochtar Riady managed to record a profit for the current period attributable to owners of the parent entity of Rp255.84 billion. This reversed the Rp2.11 trillion net loss suffered by the Lippo Group property issuer in the first quarter of last year.

Lippo Karawaci's profit achievement was inseparable from revenue growth of 9.67 percent from Rp3.1 trillion in the January-March 2020 period to Rp3.4 trillion at the end of March 2021.

With a final tax burden of Rp122.76 billion, LPKR finally pocketed a net income of Rp3.28 trillion, an increase of 7.18 percent compared to the same period last year.

In detail, LPKR's revenue is supported by the healthcare segment of Rp1.91 trillion or 55.88 percent of total revenue. Furthermore, the real estate development sector amounted to Rp837.4 billion.

The real estate sector consists of the apartment segment with a value of Rp519.68 billion as well as residential houses and shop houses of Rp161.41 billion.

Meanwhile, revenue from LPKR's real estate management & services in the first quarter grew 7 percent from Rp 2.39 trillion to Rp 2.56 trillion. LPKR's hospital business also rose 2 percent to Rp1.91 trillion compared to Rp1.88 trillion in the first three months of last year.

Lippo Karawaci CEO John Riady said revenue from the real estate development business grew 23 percent year on year (yoy) to Rp837 billion from Rp678 billion in the previous year.

This achievement was supported by the completion of apartment construction followed by the handover of units at the Embarcadero project in Bintaro, the Orange County project in Cikarang, and the Hillcrest and Fairview Tower projects in Lippo Village.

"In 2021, our property business continues to show improvement, especially in terms of pre-sales, where pre-sales in the first quarter of 2021 grew by 86 percent YoY to Rp1.31 trillion. While the hospital business continues to show positive signals along with increasing vaccinations, "explained Mochtar Riady's son in his written statement.