Indofarma continues to suffer losses<\/p>\n
Sari P. Setiogi, The Jakarta Post, Jakarta<\/p>\n
Publicly listed pharmaceutical company PT Indofarma said on
\nWednesday it suffered more losses in the third quarter of this
\nyear despite higher sales as the company had to cover huge
\nborrowing expenses.<\/p>\n
Company president M. Dani Pratomo said that the net loss in
\nthe third quarter increased to Rp 40 billion (US$4.45 million)
\nfrom Rp 34 billion in the second quarter. (During the third
\nquarter of last year, the company reported a net profit of Rp
\n88.6 billion).<\/p>\n
The losses came despite a jump in sales to Rp 323 billion
\nduring the third quarter from Rp 162 billion in the second
\nquarter and Rp 240 billion in the third quarter of last year.<\/p>\n
Speaking at a hearing with the House of Representatives
\nCommission VIII on health issues, Dani explained that a huge part
\nof the company's working capital came from bank loans which
\ncarried an average interest rate of 16.5 percent.<\/p>\n
But he said that the state-owned company had now obtained
\ncheaper bank loans carrying interest rate of 13.5 percent to
\nrefinance the expensive loans.<\/p>\n
\"We expect to save about 3 percent annually, which is
\nequivalent to about Rp 8 billion for a Rp 250 billion loan,\" Dani
\nsaid.<\/p>\n
He said that the jump in the third quarter sales was
\nattributed to the reintroduction of a discount program, which was
\ndropped during previous quarters following criticism from the
\ngovernment that the program was costing the company as evidenced
\nby the Rp 59.82 billion net loss booked in the full-year 2002
\naccount.<\/p>\n
\"We increased sales by offering discounts on generic
\nmedicine,\" said Dani, while adding that Indofarma gave discounts
\nof between 5 percent to 50 percent.<\/p>\n
Dane went on to say that the company had no other choice than
\nto offer such discounts amid tighter competition.<\/p>\n
\"I expect demand for generic medicine to increase,\" he said.<\/p>\n
About 85 percent of Indofarma's sales still rely on generic
\nmedicine.<\/p>\n
For the coming year, Dani forecast that the company could
\nreach a net profit of Rp 17 billion.<\/p>\n
Commenting on the company's plan to sell subsidiaries to new
\ninvestors, Dani said that the divestment program was expected to
\nbe completed next year.<\/p>\n
Indofarma plans to sell subsidiary PT Indofarma Global Medika
\n(IGM), a distributor of pharmaceutical products, food and
\nbeverages. This is part of efforts to allow the company to
\nconcentrate on its core business of manufacturing generic
\nmedicine.<\/p>\n
\"We are now looking for strategic investors,\" he said.<\/p>\n
At the moment, PT Tiga Raksa Satria is the only investor which
\nhas openly expressed interest to purchase IGM. But Dani said
\nthat there were few other investors with the same interest, but
\nhe declined to reveal any names.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indofarma-continues-to-suffer-losses-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}