Siloam Hospital Owned By Conglomerate Mochtar Riady Raised Revenue Of IDR 7.64 Trillion And Profit Of IDR 700 Billion In 2021

Siloam Hospitals. (Foto: Dok. Siloam Hospitals)

JAKARTA - The hospital management company from the Lippo Group owned by conglomerate Mochtar Riady, PT Siloam International Hospitals Tbk (SILO) recorded a brilliant performance in 2021. The company's revenue and profit were able to soar throughout last year.

In Siloam's financial report, quoted on Wednesday, March 30, the company achieved revenue of Rp. 7.64 trillion, an increase of 33 percent compared to 2020. EBITDA in 2021 was recorded at 1.96 trillion, an increase of 64 percent compared to 2020.

The EBITDA margin for 2021 is 26 percent, an increase from 22 percent in 2020. Siloam's net profit in 2021 was recorded at IDR 700 billion, an increase of 459 percent compared to 2020. The 2021 net profit margin is 9 percent, an increase from 2 percent in 2020.

President Director of Siloam International Hospitals Darjoto Setyawan said management has continued to focus on investing in programs and clinical capabilities for the past 2 years and these programs will lead Siloam to increased revenue and better health services in the future.

"Siloam posted the highest revenue and financial performance in 2021, Siloam is in a very good position to continue moving towards COVID-19-free operational activities," he said in a written statement.

Free cash flow was recorded at Rp1.45 trillion in 2021, and at the end of the 2021 period, Siloam's Net Cash position was at Rp1.91 trillion. Siloam's strong financial performance and net cash position provide great opportunities for sustainable growth and investment in the company's business.

Siloam recorded a decrease in material and operating expenses. Over the past few years, Siloam has undertaken various initiatives to reduce material costs and have yielded remarkable results.

"This initiative includes reducing the number of suppliers of drugs and consumer goods as well as centralizing the procurement system. In 2021, this initiative has succeeded in reducing material costs by Rp. 94 billion," he explained.

To control the operational burden, SILO has evaluated the needs of non-medical staff in all hospitals, in order to maintain an optimal number of staff. The Company has also evaluated the outsourced manpower procurement policy to reduce operational expenses.

Overall, the SILO cost control program has been running well and since July 2021, the company has seen a decrease in material costs and operating expenses in the presentation of base case revenues.