JAKARTA - Management of state owned pharmaceutical company PT Kimia Farma Tbk is highly optimistic to reach double digit growth this year in lieu of finished project developments and support coming from government’s National Health Program (BPJS).
According to President Director of KAEF Rusdi Rosman, three contributing factors will push the revenue over ten percent this year.
“We are still optimistic, because we finished the first phase of our salt factory and it is ready to sell. Second, around 300 pharmacies that we established three years ago, have started to generate both sales and profits. Third for our clinics, which are remarkably useful for BPJS, contributed quite a lot of profit,” he explained to reporters after the company’s shareholder meeting on April 6, 2016 in Jakarta.
In 2015, Kimia Farma’s net sales reached Rp4.86 trillion booking 7.5% year-on-year (yoy) sales growth and its net profit amounted Rp248.8 billion, which receded 2.7% from the previous year. Rosman added, “with the extra efficiency from the total expense, our net profit will be better than this year (2015).”
The company has set a target capital expenditure (capex) at Rp958 billion for 2016, of which Rp500 billion will be sourced internally, and around Rp300-400 billion will be sourced externally, as management is keeping their options open to either medium term notes or issuing bonds.
This year’s capex will support the company’s growth as they continue to drive three main projects, a salt factory in its second phase, construction of raw materials plant, and addition of another hundred pharmacies and fifty clinics to its existing network.