The COVID-19 Pandemic Makes Cuan Kimia Farma Rise 87.94 Percent

JAKARTA - PT Kimia Farma Tbk (KAEF) 'operating profit has increased amid the COVID-19 pandemic situation. In the first quarter of 2020, the company recorded an increase in the operating profit post by 87.94 percent to IDR 160,836 billion compared to the same period last year which was IDR 85.577 billion.

Kimia Farma President Director Verdi Budidarmo said that the company's performance in the first quarter of 2020 was largely contributed by sales of supplements and masks which had skyrocketed. According to Verdi, the public had made large-scale purchases or panic buying because of the COVID-19 pandemic which was just felt in March-April, when the first cases of COVID-19 were announced in Indonesia.

"So, in the first quarter of 2020, Kimia Farma Group's revenue generated were two of our sectors, namely retail and distribution. Meanwhile, the products, during the first quarter, were still in general scale because the peak of panic buying was in March-April. "he said, in a video conference with reporters, Wednesday, July 29.

Verdi explained, in terms of revenue, the company experienced an increase of 32.37 percent, from IDR 1.81 trillion in the first quarter of 2019 to IDR 2.40 trillion in the first quarter of 2020. Meanwhile, Ebitda increased 85.37 percent from IDR 133.20 billion to IDR 246.92. billion.

The company's liabilities in the first quarter of 2020 were IDR 10.2 trillion, an increase of 14.29 percent from the same quarter of the previous year, IDR 8.9 trillion. Meanwhile, in terms of equity, in the first quarter of 2020, it was recorded at IDR6.98 trillion. This position increased 157.82 percent from the first quarter of last year amounting to IDR2.70 trillion.

Meanwhile, Vendi explained, total assets up to the first quarter of 2020 were recorded at IDR 17.19 trillion. This position increased 47.67 percent from the position one year earlier which was Rp. 11.64 trillion. The increase in these assets came from the revaluation of assets in 2019.

"Total assets have increased, the biggest contribution is the increase in total assets from the revaluation of the assets of the land group with an increase in the value of land assets of Rp. 5.3 trillion in 2019," he said.

On the other hand, Verdi said Kimia Farma is ready to play a role as a distributor regarding its involvement in the production process of the COVID-19 vaccine, which is a collaboration between a company from China Sinovac Biotech Ltd. with the state-owned pharmaceutical holding company PT Bio Farma (Persero).

Moreover, Kimia Farma and Indofarma have distribution networks throughout Indonesia. "What kind of mechanism will coordinate with the government, especially the holding of pharmaceutical BUMN, the Ministry of BUMN, and the Ministry of Health," concluded Verdi.