Overcoming the Challenges during the Pandemic, Ciputra Development Records a 14% Increase in Net Income in 2020

PT Ciputra Development Tbk (“the Company”) displayed a resilient performance amidst the challenges posed by the COVID-19 pandemic with net income of Rp1.3 trillion in 2020, representing a 14% year-on-year increase. This achievement translated into earnings per share (EPS) of Rp71.

The Company booked consolidated revenues of Rp8.1 trillion in 2020, representing a 6% year-on-year increase. The management was pleased with the Company’s performance as the core backbone of the Company, the property development segment which accounted for 82% of total revenue, posted a robust 16% year-on-year revenue growth to Rp6.6 trillion and was able to offset the weakness from the recurring segment that fell 24% year-on-year to Rp1.5 trillion.

Within the property development segment, landed residential products which includes the sale of houses, shophouses, and land lots, reported a strong revenue growth of 20% year-on-year to Rp5.1 trillion as the Company continued to handover units from marketing sales from the last several years. CitraLand Surabaya saw notable handovers worth of Rp1.4 trillion in 2020, of which Rp995 billion coming from timely recognition of units launched in the fourth quarter of 2017 with a 36-month handover period, while Citra Maja Raya contributed Rp546 billion. Revenue from apartments increased by 24% year-on-year driven by the construction completion and the units handover of Denver in CitraLand Surabaya and The Newton 1 in Ciputra World Jakarta 2 in the fourth quarter of 2020.

For the recurring segment, shopping malls and hotels fell 32% and 59% year-on-year respectively due to the temporary reductions in rental rate and service charge for shopping malls and the decline in occupancy rates and room rates across the Company’s hotel portfolio. Hospitals grew by 35% year-on-year to Rp455 billion mainly due to additional revenue streams from COVID-related healthcare services such as treatments and tests. A total of 30,000 PCR tests and 60,000 rapid tests were carried out in Ciputra Hospitals throughout 2020. Office for lease posted a 12% year-on-year increase in revenue to Rp206 billion, driven by higher occupancy in Tokopedia Tower.

The Company posted Rp4.1 trillion gross profit in 2020, reflecting a 9% year-on-year increase with gross margin of 51% compared to 50% in 2019. The stable gross margin was attributed to the recognition of higher margin products in property development segment that compensated the fall in the shopping malls’ and hotels’ margin. The strengths in revenue and gross margin were followed by a 7% year-on-year reduction in operating expense to Rp1.5 trillion, mainly from cost saving initiatives in the promotion and advertising item, thus resulting a 21% year-on-year increase in operating profit to Rp2.6 trillion from Rp2.2 trillion.

For more information, please see the Company’s financial statement and presentation.