Property Developer Conglomerate Mochtar Riady's Profits Drop 38 Percent, Revenue Drops 39 Percent In Semester I 2021

Illustration. (Photo: Doc. Lippo Cikarang)

JAKARTA - Property developer, PT Lippo Cikarang Tbk recorded a decline in performance in the first six months of this year. The company's revenue and profit coded as LPCK stock decreased drastically in the first semester of 2021.

During the LPCK's financial report in the Indonesia Stock Exchange (IDX) information disclosure, quoted on Sunday, August 1, the total revenue of the company owned by the conglomerate Mochtar Riady was Rp655.1 billion until the first semester of 2021 or dropped 39.81 percent compared to the same period last year of Rp08 trillion.

Then, Lippo Cikarang achieved a profit for the year attributable to owners of the parent entity of Rp246.05 billion. This achievement fell 38.51 percent compared to the first semester of 2020 of IDR 400.21 billion.

The decline in LPCK's revenue mainly came from the sale of residential houses and apartments of Rp398 billion in the first semester of 2021 compared to Rp721.3 billion in the first semester of 2020.

In addition, LPCK recorded sales of commercial land and shophouses as well as sales of industrial plots in the first semester of 2021 amounting to IDR 67.1 billion compared to IDR 176.4 billion in the first semester of 2021.

Revenue from residential houses and apartments amounted to Rp398 billion, which contributed 60.8 percent to total revenue, while income from sales of industrial and commercial land was Rp67.1 billion, contributing 10.2 percent to total revenue.

The decline in revenue for the first half of 2021 was mainly due to fewer handovers in Orange County than last year's period. Lippo Cikarang CEO Rudy Halim said, amid the COVID-19 pandemic, his party had handed over the Waterfront Estates unit in stages and followed health protocols.

"We are proud that this handover was carried out on time and in accordance with our commitments to our customers after our initial launch in 2020," said Rudy Halim in his official statement.

In the second semester, Lippo Cikarang plans to launch a commercial and residential cluster at Waterfront Estates which is expected to help meet the company's marketing sales target.

For information, LPCK's total assets increased 1.1 percent on an annual basis to Rp9.85 trillion at the end of June 2021, from Rp9.71 trillion at the end of 2020. Meanwhile, the company's cash balance was Rp591.1 billion at the end of June 2021, from Rp635, 4 billion in December 2020.