The Lippo Cikarang township is spread over 3,250 hectares of industrial and residential areas with international standard facilities. (Photo courtesy of Lippo Group)
Lippo Cikarang Posts Revenue of Rp 686b in First Half of 2019
SEPTEMBER 09, 2019
Jakarta. Township developer Lippo Cikarang has announced its financial results for the first semester of 2019, which include a total revenue of Rp 686 billion ($48 million), 41 percent lower than in the same period last year.
Reported revenues were impacted by nonrecurring land sale gain in the first semester of 2018 – the main reason behind the weaker than normal figures in the first semester this year.
Gross profit in the period fell from Rp 647 billion to Rp 270 billion and net profit from Rp 2,053 billion to Rp 221 billion.
Revenues from sales of residential homes and apartments reached Rp 424 billion in the period, making up 61.8 percent of the total revenue.
Revenues from the company's industry and commercial activities reached Rp 82 billion, contributing 11.9 percent to the total revenue.
The company's earnings before interest, taxes, depreciation and amortization (Ebitda), a measure of a company's overall financial performance, was recorded at Rp 252 billion in the first semester, down 88 percent from Rp 2,105 billion in the first semester of 2018.
Lippo Cikarang's total assets increased from Rp 9.23 trillion at the end of 2018 to Rp 9.90 trillion at the end of the second quarter this year.
"The first semester results were weaker due mainly to the nonrecurring gain from our land sale to MSU in the first half of last year. But with the projects we're currently working on, Lippo Cikarang remains optimistic to improve the company's performance and we expect higher presales for our new launches in late 2019," Lippo Cikarang president director Simon Subiyanto said.
Currently, Lippo Cikarang's subsidiary has already handed over three towers to buyers in its Orange County project – Irvine, Westwood and Pasadena, a total of 1,271 apartments valued at Rp 1.1 trillion.
This shows the company's commitment to hand over sold apartment units on time.
Lippo Cikarang, spread over 3,250 hectares of industrial and residential areas with international standard facilities, is continuing to prove its reputation as an urban area property developer.
The company has so far built 17,192 homes for 51,250 residents on its urban housing projects. The Lippo Cikarang industrial area is home to 500,500 workers and 1,200 manufacturing factories.
The Jakarta Globe and Lippo Cikarang are both affiliated with the Lippo Group.