Mitra Keluarga Booked Revenues of IDR 1.44tn for 1H 2020
PT Mitra Keluarga Karyasehat Tbk. ("Mitra Keluarga" or "the Company") announced its financial results for the months ended June 30, 2020.
Mitra Keluarga posted 1H 2020 revenue of IDR 1.44 trillion compared to IDR 1.58 trillion for the same period in 2019 and EBITDA was recorded at IDR 466.9 billion compared to IDR 587.5 billion in the same period last year as Indonesia was hit by COVID-19 pandemic in March 2020 followed by the Large Scale Social Limitation (PSBB) implementation in April 2020 by the Government as a mean in curbing the spread of SARS Cov-2 virus in Indonesia.
Following the implementation of PSBB, Ministry of Health issued a recommendation letter which set out postponement of any elective procedure at healthcare facilities to reduce the risk of the SARS Cov-2 virus infection. The fast spread of this virus has caused fears among Indonesian to get medical treatment in healthcare facilities. At the same time, some of the doctors at Mitra Keluarga have also reduced their practice hours at the hospital. As such volume of both Inpatients and Outpatients have decreased by 11.43% y-o-y and 19.72% y-o-y for 1H 2020 respectively. Meanwhile, our Revenue in 1H 2020 has decreased by 9.03% y-o-y due to higher intensity cases as more diagnostic testing needed to be performed for patient safety and infection control.
Due to COVID-19 pandemic, Mitra Keluarga took the initiative to build a temporary clinic outside the main hospital building to treat respiratory related cases as part of infection control measures. To date, Mitra Keluarga has treated more than 2,500 COVID-19 patients and suspects, has done 110,000+ Rapid tests, and 18,000+ PCR Tests in most of our hospitals. During May and June 2020, Mitra Keluarga has implemented several cost efficiency initiatives such as hiring freeze and termination of newly hired employees. As a result, salary expenditure has been reduced by ±10% in each of corresponding months.
In addition, in June 2020, the Government started to relax PSBB as malls and office have resumed their businesses. These moves were also followed by more doctors increasing their practice hours at the hospitals, which in turn have increased the traffic in June 2020 for both inpatient admissions and outpatient visits.
Financial Performance of 1H20
Total Revenues of IDR 1.44 trillion for 1H 2020 compared to IDR 1.58 trillion y-o-y, a decrease of 9.03%. This was due to a decrease in 2Q 2020 of 35.22% to IDR 566.6 billion from 1Q 2020.
Total Outpatients of 1.03 million for 1H 2020 compared to 1.23 million y-o-y, a decrease of 19.72%. This was due to a decrease in 2Q 2020 of 51.8% to 334.1 thousand from 1Q 2020.
Total Inpatients of 95.6 thousand for 1H 2020 compared to 107.9 thousand y-o-y, a decrease of 11.43%. This was due to a decrease in 2Q 2020 of 34.29% to 37.9 thousand from 1Q 2020. Average length of stay stood at 3.1 days in 1H 2020.
Revenue per Outpatient Visits of IDR 493,5 thousand for 1H 2020 compared to IDR 459.5 thousand y-o-y, an increase of 7.40%. This was due to an increase in 2Q 2020 of 17.13% to IDR 547.5 thousand from 1Q 2020.
Revenue per Inpatient Days of IDR 3,2 million for 1H 2020 compared to IDR 3.0 million y-o-y, an increase of 4.88%. This was due to an increase in 2Q 2020 of 8.59% to IDR 3.3 million from 1Q 2020.
Bed Occupancy Ratio of 53.3% compared to 64.0% y-o-y, a decrease of 10.7%. This was due to a decrease in 2Q 2020 of 24.02% to 41.6% from 1Q 2020. In addition, there are an additional 36 operational beds in 2Q 2020 in Mitra Keluarga Gading Serpong, Karunia Kasih, and new acquired hospital, Panti Abdi Dharma.
Operating Expenses of IDR 320.3 billion for 1H 2020 compared to IDR 297.5 billion y-o-y, an increase of 7.63%. However, operating expenses in 2Q 2020 were decrease by 5.76% to IDR 155.4 billion from 1Q 2020.
Gross Profit of IDR 652.0 billion for 1H 2020 compared to IDR 765.3 billion y-o-y, a decrease of 14.8%. This was due to a decrease in 2Q 2020 of 43.1% to IDR 236.5 billion from 1Q 2020.
Gross Profit Margin of 45.2% for 1H 2020 compared to 48.3% y-o-y, a decrease of 3.1%. This was due to a decrease in 2Q 2020 of 5.78% to 41.73% thousand from 1Q 2020.
EBITDA of IDR 466.9 billion for 1H 2020 compared to IDR 587.5 billion y-o-y, a decrease of 20.52%. This was due to a decrease in 2Q 2020 of 52.98% to IDR 149.3 billion from 1Q 2020.
EBITDA Margin of 32.39% for 1H 2020 compared to 37.08% y-o-y, a decrease of 4.68%. This was due to a decrease in 2Q 2020 of 9.95% to 26.36% from 1Q 2020.
Net Profit of IDR 317.6 billion for 1H 2020 compared to IDR 396.6 billion y-o-y, decreased by 19.92%. This was due to a decrease in 2Q 2020 of 55.88% to IDR 97.2 billion from 1Q 2020. The company has a cash position of IDR 2.07 trillion as of June 30, 2020.
Hospital Expansion Plan
Mitra Keluarga will continue to add more hospitals in the future through both greenfield and brownfield expansion plans;
Mitra Keluarga expects to open our 26th hospital located in the Surabaya area by the end of 2020 or 1Q 2021. Building construction has now reached 88% completion by June 2020.
Mitra Keluarga plans to commence the groundbreaking of the 27th Hospital in 4Q 2020.
The acquisition of Panti Abdi Dharma Hospital, located in Cirebon, West Java, was completed at the end of April 2020. M&A opportunities would remain part of Mitra Keluarga’s growth strategy.
Mitra Keluarga Karyasehat Tbk at a glance
The Company built its first hospital back in 1989 and currently owns and operates 25 hospitals, sixteen of which are located in the Greater Jakarta area, five in West Java, three in Surabaya (East Java), and one in Tegal (Central Java) Normally, the hospitals are equipped with emergency rooms, outpatient clinics, inpatient wards, operating rooms, intensive care units and a pharmacy, as well as laboratory and radiology facilities. The hospitals also offer specialized services such as obstetrics, pediatrics, internal medicine, angioplasty, orthopedic surgery and neurosurgery, amongst others.
From its humble beginnings, The Company has transformed into one of Indonesia’s biggest private hospital operators by an intake of 2.8 million patients in 2019 and in terms of hospital bed capacity with 2,876 operational beds as of December 31, 2019.
The Company employed more than 7,794 medical professionals including doctors, laboratory staffs, nurses and therapists with around 1,251 specialists practicing in all of its hospitals by 2019.
The Company successfully listed its shares in the Indonesia Stock Exchange on March 24, 2015. With 18.0% free-float, the Company has a market capitalization of IDR 38 trillion as of December 31, 2019. (IDX:MIKA).