INAF's Q1 Loss Shrinks 69.8%, but Critical Period Far From Over
PT Indofarma (Persero) Tbk (INAF) began showing signs of recovery in the first quarter of 2026. The company managed to slash its net loss by 69.8% year-on-year (yoy), although its financial condition has not fully recovered.
Citing a financial report submitted to the Indonesia Stock Exchange (BEI), the loss for the period attributable to owners of the parent entity was recorded at Rp7.58 billion in Q1 2026, down from Rp25.1 billion in the same period last year.
The improvement was supported by a 45.1% increase in net sales to Rp53.33 billion, compared to Rp36.76 billion in Q1 2025.
On the cost side, the cost of goods sold rose to Rp48.58 billion from Rp42.37 billion. However, higher sales growth allowed Indofarma to reverse its gross profit position to a positive Rp4.75 billion, after posting a gross loss of Rp5.60 billion in Q1 2025.
Efficiency was also evident in operational expenses. Selling expenses plunged to Rp353.1 million from Rp3.88 billion in the same period last year. Meanwhile, general and administrative expenses fell 48.4% to Rp6.55 billion from Rp12.71 billion.
On the other hand, other losses also shrank to Rp1.02 billion compared to Rp3.24 billion in Q1 2025.
This series of improvements caused the operating loss to drop sharply to Rp3.18 billion from Rp25.44 billion in the first quarter of last year.
However, the company recorded a financial expense of Rp4.42 billion in Q1 2026. This interest expense weighed on performance, resulting in a pre-tax loss of Rp7.60 billion. Nonetheless, this figure remains far lower than the pre-tax loss of Rp25.44 billion in the same period last year.
Although operational performance is starting to improve, Indofarma’s balance sheet still shows major challenges. As of the end of March 2026, the company’s total assets fell to Rp489.67 billion from Rp535.99 billion at the end of 2025.
Meanwhile, total liabilities remained at Rp1.20 trillion, far exceeding total assets. This condition leaves the company with an equity deficit of Rp714.52 billion.
In addition, Indofarma’s tax debts also remained high, recorded at Rp318.25 billion as of the end of Q1 2026.
Despite this, there was another positive signal regarding liquidity. Cash flow from operating activities turned positive to Rp6.23 billion in Q1 2026, compared to a negative operating cash flow of Rp18.74 billion in the same period last year.