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Champion Pacific net profit plunges 38% in 2018

08 April 2019 02:57 PM  Company: PT. Champion Pacific Indonesia Tbk[IGAR]
Rp. 370  0 (0%)

JAKARTA - Pharmaceutical product packaging company PT Champion Pacific Indonesia Tbk (IGAR) pocketed a net profit of Rp 44 billion in 2018, down 38% from Rp 72 billion in 2017. Meanwhile, the company’s gross profit plunged 21% from Rp 128 billion in 2017 to Rp 101 billion in 2018.

Based on the company’s 2018 financial statements, IGAR’s revenue only grew slightly by 2.1% year on year (yoy) to Rp 777 billion, while cost of goods sold increased 6.9% from Rp 632 billion in 2017 to Rp 676 billion in 2018.

According to IGAR President Director Antonius Muhartoyo, the strengthening of the US dollar exchange rate in 2017 saddled the company’s finances and raw material purchase. “Product prices also could not be raised,” Mr Muhartoyo told Kontan.co.id, Monday (8/4).

Mr Muhartoyo added that IGAR’s management found it difficult to raise prices because pharmaceutical companies also faced challenges in marketing their products. Raising prices, he said, would add more burden to customers.

“We could not raise the prices of several items, such as generic medicines,” said Mr Muhartoyo. Generic medicine packaging contributed 70% of IGAR’s total sales in 2018. (MS)