October 28, 2019
Jakarta, October 28, 2019 – PT Medikaloka Hermina Tbk (“Hermina”, “the Company”) announced its financial results for the period ended September 30, 2019 (9M19) with a net revenue of IDR 2.69 trillion, an increase of 17.5% compared to the same period in 2018 (9M18). The Company also reported Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) of IDR 663.3 billion, which represents a continuous margin improvement of 24.7%, and an increase of 39.8% compared to the EBITDA in 9M18. The cost improvement initiatives that were started in the second semester of 2018 continue to be sustainable in producing improved margin in recent quarters.
On the net income basis, the Company delivered a strong PAT of IDR 264.5 billion, a 63.3% increase from the net income of 9M18. Meanwhile, the net income attributable to the owners of parent entity (PATMI) increased 90.6% y-o-y to reach IDR 210.1 billion. The result is showing an increasing portion of PATMI as a percentage of PAT at 79.4%. Overall, the result shows that the Company is on track to surpass its full year guidance that was recently revised up in July 2019.
The mix of the Hermina’s business coming from private (non-JKN) and JKN patients has noticeably been stable in the last 12 months, while the volume of private patients has been growing. Including the third quarter of 2019 (3Q19), the trend of positive volume growth of private patients has continued for five straight quarters. Despite about half of the net revenue originating from JKN, the Company has been able to maintain its margin through economies of scale, improvement in operating efficiencies, and technology adoption. Hermina has also been quite skilful in navigating the healthcare dynamic regulatory environment.
The growth in the Company’s revenue is primarily driven by the increased productivity of existing hospitals, as indicated by a consistent double digit same-store-sales growth. In order to answer an increased demand, Hermina has been adding 483 beds in existing hospitals since the start of the year. As the largest private hospital network in Indonesia, the Company currently operates 3,861 beds across 33 hospitals with bed occupancy rate of 69.6%. In 9M19, it served 277,380 inpatient admissions (24.1% increase y-o-y) and 4.51 million outpatient visits (16.5% increase y-o-y). The total inpatient days grew by 26.7% to 710,815 with an average length of stay (ALOS) of 2.6 days.
There are four new hospitals that are currently in various construction phases. This development is in line with the plan to meet the target of 40 hospitals by the end of 2020. The Company projected a total capital expenditure of approximately IDR 800 billion in 2019 for its organic / inorganic expansion, maintenance, and other investments.
PT Medikaloka Hermina Tbk is one of the largest general hospital networks in Indonesia with 34 years of experiences in providing professional and comprehensive healthcare services. In addition to its strong heritage in women and children care, Hermina has developed itself to become a provider of specialties across healthcare. As of September 2019, the Company has 33 hospitals consisting of 8 type B hospitals and 25 type C hospitals with more than 3,200 doctors and specialists across 21 cities in Indonesia. The Company went public at Indonesia Stock Exchange (IDX) on May 16, 2018 and is trading with the ticker symbol HEAL.