PT Lippo Karawaci Tbk (LPKR) Q2 2024 earnings summary

Executive summary

• 1H24 NPAT reached IDR 20tn, driven by improved business performance and strategic asset divestment, notably the Siloam shares sale and deconsolidation.

• Revenue for 1H24 was IDR 8tn, with real estate, healthcare, and lifestyle segments all reporting year-on-year growth in revenue and EBITDA, supported by innovative product launches and post-COVID recovery.

• Net debt reduced by 32% to IDR 7.9tn as of June 2024, with further deleveraging expected after additional Siloam share sales.

• Ongoing focus on product innovation in real estate, clinical excellence in healthcare, and asset enhancement in lifestyle segments.

Financial highlights

• Booked a one-off gain of up to IDR 20.7tn from the Siloam divestment, mainly an accounting entry.

• Underlying NPAT improved to IDR 153bn in 1H24 from negative IDR 34bn in 1H23.

• Operating cash flow rose sharply to IDR 1.7tn from IDR 157bn year-on-year.

• EBITDA margin remained healthy across segments: healthcare and real estate at 26%, lifestyle at 23%.

• Gross margin stable at 44% in 1H24.

Outlook and guidance

• Marketing sales are on track to meet or exceed FY24 targets, with strong demand for new residential products and a focus on affordable housing.

• Continued focus on first home buyers in real estate and expansion of premium healthcare services, including digital transformation and new hospital projects.

• Lifestyle segment expects stable mall occupancy and visitor growth, with ongoing asset enhancement and refurbishment projects.

• Further deleveraging expected with proceeds from additional Siloam stake sales.