Lippo Cikarang, Property Developer Owned By Conglomerate Mochtar Riady, Profits Drop 43 Percent To Rp344.36 Billion

Illustration. (Photo: Doc. Lippo Cikarang)

JAKARTA - Property developer, PT Lippo Cikarang Tbk (LPCK) posted a decline in performance until September 2021. Revenue and net profit of the company owned by conglomerate Mochtar Riady fell 43.78 percent on an annual basis (yoy).

In the LPCK's financial report, quoted on Friday, October 29, the revenue of this subsidiary of PT Lippo Karawaci Tbk (LPKR) for the past nine months was valued at Rp1.15 trillion. This figure is down 25.8 percent compared to the third quarter of 2020 of Rp. 1.55 trillion.

By segment, sales of residential houses and apartments contributed Rp. 819.63 billion, down 27.07 percent. Then the city management revenue fell 2.33 percent to Rp243.47 billion. Industrial land revenues fell 41.12 percent to Rp71.46 billion.

Furthermore, sales of commercial land and shop houses fell 92.13 percent to Rp4.79 billion. Only rental and other income rose 14.48 percent to Rp42.12 billion.

Along with the decline in revenue, LPCK's cost of revenue decreased by 28.58 percent to Rp681.39 billion. LPCK posted a gross profit of IDR 477.28 billion, down 20.78 percent yoy.

Lippo Karawaci's operating expenses fell 15.74 percent to Rp199.24 billion. However, other income recorded a decline of 54.4 percent to Rp219.53 billion.

LPCK's operating expenses also increased to Rp54.36 billion compared to the same period last year of Rp20.37 billion. As a result, LPCK's operating profit was depressed by recording Rp. 439.2 billion, down 46.89 percent compared to the same period last year of Rp. 827.09 billion.

LPCK's financial expenses recorded an increase to Rp. 61 billion compared to the third quarter of 2020 of Rp. 17.49 billion. On the other hand, the company posted a profit on investment in associates of Rp3.13 billion compared to the same period last year which lost Rp169.56 billion.

Thus, LCPK's net profit in January-September 2021 was recorded at Rp. 344.26 billion. This realization decreased by 43.78 percent compared to the third quarter of 2020 of Rp612.42 billion.

As for September 2021, Lippo Cikarang's total assets were recorded at Rp9.52 trillion, down 1.95 percent from December 2020 of Rp9.71 trillion. Total equity and liabilities each rose 2.73 percent to Rp6.75 trillion and decreased 11.78 percent to Rp2.77 trillion.

Then LPCK's cash and cash equivalents were recorded at Rp. 377.51 billion, down 40.58 percent compared to December 2020 of Rp. 635.42 billion.