PT Jababeka Tbk (“KIJA”) recorded a total consolidated revenue of Rp712.8 billion in the first quarter of 2017, an increase of 22% compared to the same period of 2016. This growth was mainly driven by the company’s Land Development & Property business pillar, which saw revenue more than double to become Rp194.6 billion in 1Q17, compared to Rp93.5 billion in 1Q16. The highest growth came from the Kendal Industrial Park which increased to Rp95.0 billion in 1Q17 versus Rp11.7 billion in 1Q2016.
Furthermore, both the Company’s Infrastructure and Leisure & Hospitality pillars recorded modest revenue growth with 5% and 3% respectively in 1Q17 to become Rp492.1 billion and Rp26.1 billion respectively, both mainly as a result of organic growth. Total recurring revenue from the company’s infrastructure businesses (electricity, port, water) equals 69% of total revenue in 1Q17, compared to 80% in 1Q16.
Largely in line with revenue, the Company’s gross profit increased from Rp182.1 billion in 1Q16 to become Rp248.2 billion in 1Q17. The consolidated gross profit margin also increased from 31% in 1Q16 to 35% in 1Q17, contributed by the pillar of Real Estate & Property and Infrastructure. On the other hand, the gross profit margin of Land Development & Property declined from 66% in 1Q16 to 57% in 1Q17. This is mainly the result from more contributions from sales in Kendal, which on average have significantly lower margins compared to Cikarang.
The Infrastructure pillar gross profit margin increased slightly, from 23% in 1Q16 to 25% in 1Q17, whereas the gross profit margin for the Leisure & Hospitality pillar remained flat at 46%.
KIJA’s net income for the period as per 1Q17 was recorded at Rp66.8 billion, a decrease of 50% compared to 1Q16. This was mainly caused by a drastic decline in net foreign exchange (forex) gain from Rp116.7 billion in 1Q16 to only Rp22.2 billion in 1Q17. Excluding such forex gains the Company’s net income for the period would have in fact increased 180% from Rp16.0 billion to Rp44.7 billion.
Those amounts are the sum of operational and financial forex gains/losses and gain/loss on our hedging contracts. The details of this can be found in the financial and other income and expense sections of our 1Q17 financial report.
Largely in line with the Company’s revenue and gross profit, KIJA’s EBITDA in 1Q17 reached Rp194.8 billion, an increase of 40% compared to the Rp 139 billion achieved in the first quarter of 2016.