Mitra Keluarga 1H 2025 presentation: Revenue up 4.5% despite patient volume decline

Introduction & Market Context

PT Mitra Keluarga Karyasehat Tbk (IDX:MIKA), one of Indonesia’s leading hospital operators, presented its first-half 2025 results on July 29, highlighting solid financial growth despite declining patient volumes. The company, which has built a 35-year track record in the Indonesian healthcare sector, continues to focus on strategic expansion in high-growth regions while maintaining strong profitability.

The healthcare provider operates 31 hospitals across Indonesia under three brand divisions: Mitra Keluarga (21 hospitals), Kasih Group (10 hospitals), and Medikvet (1 hospital and 4 clinics). With 4,160 operational beds, the company serves over 3 million outpatients and 300,000 inpatient admissions annually.

Executive Summary

Mitra Keluarga reported a 4.5% year-over-year increase in revenue to IDR 2,563.46 billion for the first half of 2025, while net income grew 6.0% to IDR 683.63 billion. This growth came despite a 6.8% decline in overall patient volume, indicating the company’s successful focus on higher-value services and private patients.

As shown in the following key performance indicators from the presentation:

The company’s strategic pivot toward private patients continues to bear fruit, with non-JKN (private) revenue increasing by 6.8% while government-insured JKN revenue decreased by 15.1%. This shift has helped maintain strong profitability, with EBITDA margin at 37.7% and ROIC (excluding land bank) at 39.5%.

Quarterly Performance Highlights

Mitra Keluarga’s revenue growth was driven by both inpatient and outpatient services, which increased by 3.7% and 6.3% respectively. The company maintains a strong cash position of IDR 2.46+ billion with zero debt, providing ample resources for its expansion plans.

The company’s payer mix continues to shift toward higher-margin private patients, as illustrated in the following chart:

Private patients (both out-of-pocket and covered patients) now account for 87.8% of revenue, up from 84.9% in the first half of 2024. This strategic focus on the private segment has helped offset the decline in patient volumes, with inpatient admissions down 9.7% and outpatient visits down 6.4% year-over-year.

Mitra Keluarga’s comprehensive service offerings contribute to its strong financial performance, with high-complexity specialty services generating over 25% of total revenue:

Strategic Initiatives

The company is pursuing an aggressive expansion strategy, with plans to add 1,400 new beds through seven new hospital sites. Each new site is targeting an initial capacity of 50-60 beds, with the potential for future expansion. This is part of Mitra Keluarga’s overall capacity expansion plan, which projects a CAGR of 4.5%-4.8% from 2021 to 2025:

The company recently celebrated the grand opening of Kasih Hospital in Lemahabang on June 26, 2025, adding approximately 100 beds to its capacity. Additionally, three more hospitals are under development:

• Site 1 in East Java (93% complete, expected opening in Q3 2025)
• Site 2 in Greater Jakarta (29% complete, expected opening in Q3 2026)
• Site 3 in East Java (25% complete, expected opening in Q3 2026)

Mitra Keluarga has demonstrated a strong track record of quickly ramping up new hospitals to profitability, with several recent openings achieving EBITDA break-even in just 3-9 months:

Beyond new hospital development, the company is also investing in upgrading existing facilities and expanding specialty services. A new Nuclear Medicine Center at Mitra Keluarga Bekasi Timur is scheduled to open in Q3 2025, enhancing the company’s oncology program. The company is also advancing surgical technologies with the introduction of Rezum Water Vapor Therapy and the Rosa robotic surgery system.

Detailed Financial Analysis

Mitra Keluarga’s strong financial performance is supported by efficient working capital management. The company has improved its cash cycle days from 13 days in 1H 2024 to -7 days in 1H 2025, driven by a reduction in trade receivables days (55 to 47) and an increase in trade payable days (59 to 72).

The company’s consolidated balance sheet shows total assets of IDR 8,989.01 billion as of June 30, 2025, up 8.99% from December 31, 2024. Cash and cash equivalents more than doubled to IDR 2,241.32 billion, providing ample liquidity for the company’s expansion plans.

The company’s ability to attract and retain healthcare professionals remains strong, with a 95% doctor retention rate and more than 15% of specialists working full-time:

Forward-Looking Statements

For 2025, Mitra Keluarga has budgeted IDR 1,000 billion for capital expenditure, primarily for construction, medical equipment, and land rights. The company expects to add 3.0-5.0% capacity through greenfield and brownfield expansion in 2025.

The company’s strategic focus remains on the high-growth regions of Greater Jakarta and Surabaya, which account for 19% of Indonesia’s population and 31% of its GDP:

With its strong financial position, proven operational excellence, and strategic expansion plans, Mitra Keluarga appears well-positioned to maintain its leadership in Indonesia’s private healthcare sector despite the challenges of declining patient volumes.

Shares of Mitra Keluarga (IDX:MIKA) closed at IDR 2,390 on August 22, 2025, down 1.67% for the day. The stock has traded between IDR 2,070 and IDR 3,310 over the past 52 weeks.

Full presentation:

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