Publicly listed pharmaceutical company PT Pyridam Farma announced Monday it plans to spend about Rp 7 billion (US$753,900) this year to upgrade its facility in Cianjur, West Java.
Corporate secretary Ryan Arvin said Monday up to Rp 5 billion would be spent on developing the factory's water system and up to Rp 2 billion improving other facilities.
The company plans to maximize its internal cash flow to finance the upgrades, which led to the decision not to provide dividends from last year to shareholders.
In the first quarter of this year, the company saw a 35.59 percent increase in net sales to Rp 28.6 billion from the same period last year.
However, net profit dropped 45.05 percent to Rp 738 million due to increases in sales costs and material prices.
Ryan said the company is lowering its revenue growth expectation to 12 percent for the year, helped by 10 new products set to be launched this year.
Besides preparing to launch new drugs, the company also plans to begin exporting to the Philippines this year.
"Currently, we're only exporting drugs to Hong Kong but we will soon start exporting drugs to the Philippines," Ryan said.
The company allocates 1 percent of its total production output for exports.
Last year, the company's factory in Cianjur produced among others, 253 million pills, 50.6 million capsules, and 633,000 tubes of ointment. (rff)
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