Kimia Farma Records IDR 2.15 Trillion in Cash in 2022

JAKARTA - State-Owned Enterprises (BUMN) in the pharmaceutical sector, PT Kimia Farma Tbk (KAEF), recorded cash and cash equivalents of IDR 2.15 trillion in 2022, an increase from the previous value of IDR 748 billion in 2021.

KAEF has recorded positive cash flow in 2022. At the end of December 2022, it was recorded that the value of cash and cash equivalents rose to IDR 2.15 trillion from 2021 of IDR 748 billion.

This is supported by obtaining funds from the corporate action to unlock value of a subsidiary owned by KAEF, namely PT Kimia Farma Apotek (KFA).

"Investor confidence is proof that there are positive prospects for KAEF and the health industry in Indonesia," said KAEF Main Director David Utama in a written statement, quoted from Antara, Tuesday, April 4.

David explained that the corporate action to unlock value supports KFA's working capital and business development with the New Business Model with Digitalization, which combines offline and online stores with an omnichannel strategy, integration of Pharmacy-Clinic-Lab Diagnostics, and New Digital Channel.

He said that throughout 2022 KAEF succeeded in reducing operating expenses by 5.41 percent or IDR 189 billion, compared to 2021, in which the company made operating expense efficiencies by optimizing distribution costs for all products.

In addition, KAEF seeks to reduce financial costs by 14.21 percent, compared to the previous year in 2021, which is supported by banking support through lowering interest rates and investment loans and refinancing.

After the KFA unlock value corporate action, his party revealed that the company generated funds of IDR 1.86 trillion accompanied by a tax burden of IDR 76 billion.

In addition, in 2022 KAEF's subsidiary, KF Dawan in Saudi Arabia, posted a loss of IDR 24 billion due to the absence of Hajj and Umrah pilgrimages during the COVID-19 pandemic.

According to him, the corporate actions and conditions of the subsidiary had an impact on recording a loss of IDR 109 billion in 2022.

His party sees that the prospects for the pharmaceutical and health care industries in 2023 are still experiencing growth, considering that health is one of the main factors that is of concern to all parties.

At the beginning of 2023, Kimia Farma has carried out several strategies to improve performance, including massive marketing activities and market penetration.

In addition, KAEF has also conducted a Non Deal Roadshow (NDR) with investors to obtain new businesses to be developed this year.

Furthermore, the company continues to make improvements in the healthcare sector and pharmaceutical retail to improve the quality and reach of health services to the public.

One of them is by having a strategic alliance with strategic partners who have a global network, namely Parkway Pantai Group, which has competence in Clinics and Clinical Laboratories.

"KAEF is optimistic that in 2023 performance will continue to grow and contribute to positive profits and Cash Flow Operations that will remain positive until the end of 2023. KAEF continues to be committed to supporting the Government in improving public health," said David.