Kimia Farma upbeat about booking profit despite pandemic

first_imgPardiman, however, did not elaborate on the company’s profit projection for this year.The company recorded Rp 12.72 billion in losses in 2019, compared to Rp 491.5 billion in profit a year earlier, due a 119.16 percent increase in finance costs.It booked Rp 48.57 billion in profit in the first half of this year, a 1.7 percent increase from Rp 47.7 billion last year, its financial report shows.Its net sales also increased slightly by 3.5 percent year-on-year (yoy) in the year’s first half to Rp 4.68 trillion, from the January to June period of 2019, despite the blow dealt to the economy by the pandemic. Publicly listed pharmaceutical firm PT Kimia Farma is aiming to make up for last year’s losses despite the COVID-19 pandemic, after recording a promising financial performance in this year’s first half.The company’s finance director Pardiman said on Wednesday that the company had prepared several strategies to book a profit this year, including conducting retail transformation, optimizing its supply chain and diversifying its products and portfolios, among other measures.“The strategy was proven in the first quarter of this year when we managed to book Rp 160 billion [US$10.8 million] and we believe this will continue through to the end of the year,” he said during an online public expose, referring to the company’s operating income in the year’s first quarter. The company’s optimism also seems to be supported by the fact it has seen an increase in sales of COVID-19 related products, like medicines and health supplements, during the pandemic.“However, [sales of] products not related to the coronavirus, such as cosmetics, declined by around 30 percent compared to a year prior and that will continue to pose a challenge for us,” president director Verdi Budidarmo said.The company’s generic medicine sales saw the highest jump of 10 percent yoy to Rp 739 billion in the first half of the year, while over-the-counter medicine and cosmetics sales nosedived 17.8 percent yoy, its report shows.Given that the pandemic has yet to show signs of slowing down, business development director Imam Fathorrahman said the company would continue to develop products that could help prevent COVID-19. The company plans to distribute a vaccine candidate that is currently being developed by state pharmaceutical firm Bio Farma, in cooperation with Sinovac Biotech of China.Read also: Indonesia teams up with global manufacturers in vaccine huntAt the same time, Kimia Farma will also develop products for degenerative illnesses that have been included in the company’s product development roadmap this year, as ailments like cancer, diabetes and cardiovascular disease continue to increase both domestically and globally.It will also continue its organic expansion plans this year by allocating Rp 547 billion in capital expenditure (capex) sourced from its own internal funding, said Pardiman.“We have used about 54 percent of the capex to develop our pharmacy, clinic and laboratory chain, our medicine production and our raw material plant in Cikarang [in West Java],” he said.The raw material plant, which has been in operation since 2019, was established under a joint venture with South Korea’s Sungwun Pharmacopia Co Ltd in 2016, and is also aimed at reducing Kimia Farma’s dependency on imported raw materials.Verdi said the country’s pharmaceutical industry was still heavily dependent on imported raw materials from China, India and many other countries.He expects the plant to reduce the firm’s raw material imports by 2.72 percent this year.“We hope this will continue, as we aim to further reduce our raw material imports by 23.82 percent by 2024,” said Verdi.Kimia Farma also plans to diversify its products and portfolio this year through inorganic growth. Verdi said the diversification would be achieved through strategic partnerships with other companies rather than through acquisitions.“These partnerships include developing products that relate to our core pharmaceutical business, both for COVID-19 products and non-COVID-19 products,” he said.Meanwhile, Pardiman said the company was committed to reducing its accounts receivable, including Rp 1.13 trillion from the government, to help reduce its short-term loans.Kimia Farma’s shares, traded on the Indonesia Stock Exchange (IDX) under the code KAEF, were up by 7.21 percent to Rp 2,380 apiece as of 1:42 p.m. on Thursday.Topics :last_img read more

BMW opposes ‘mandatory’ membership of industry-wide schemes

first_imgLarge German companies have called for membership of industry-wide pension plans to be voluntary, as the country’s parliament debates reforms to its system.Wolfgang Degel, head of BMW group’s centre of competence for retirement provision, was among the most outspoken on the topic at this year’s Handelsblatt conference on occupational pensions in Berlin.“The collective bargaining agreements should only set minimum standards for the new pension vehicles,” Degel argued. “Participation should be completely voluntary for companies and they should not be forced to transfer existing pension plans.”He added that occupational pensions were an important feature of a good employer: “With industry-wide pension plans companies can no longer set themselves apart with special arrangements.” Evelyn Stoll, head of pensions at fellow German car producer Volkswagen, said: “We do not have to be among the first to introduce a new pension vehicle. We can wait – maybe for the teething troubles to be over.”She emphasised that Volkswagen would stick to its on-book pension promises, known as “Direktzusage”, echoing similar commitments by other large companies.Carsten Velten, head of pensions at Deutsche Telekom, said he was in favour of the new pure DC plans in principle. “It is an option, but my gut feeling says that our employees might not want this,” he said.Robert Bosch Group’s head of the retirement provision Dirk Jargstorff was a bit more positive, adding: “What really helps during the retirement phase is to get away from the dogma of the strict investment strategy.”Under the proposed pure DC model – to be introduced via the “Betriebsrentenstärkungsgesetz” (BRSG) – asset allocation would no longer be limited by the need to provide guarantees to retirement benefits.“We would not have any commitment to make additional payments, which we currently still have for retirees if we cannot reach the promised guarantee,” Jargstorff said. “This would bring even more stability and equality among the generations.”However, BMW’s Degel was convinced of his company’s existing provision: “What we are offering will be more attractive than the defined ambition plans created under the BRSG – and we would like to continue the way we do.”BMW introduced a new pension plan last year for new entries after March 2016, and any employees who chose to switch. It does not have a pension payout phase – instead money can be withdrawn upon retirement in instalments.This year and last BMW paid €200m into the new plan both from the company’s 150th anniversary bonus and the employees’ share of the success premium.last_img read more

Overturned semi on 421 near proving grounds

first_imgMadison, IN— U.S. 421 has been closed since around 6 am between County Road 400 North and State Road 250 in Jefferson County due to an overturned semi. INDOT reports there is significant roadway damage. Please avoid the area and seek an alternate route if possible as the road will be closed for some time for clean-up and road repair.  Officials report the driver, hauling steel on the trailer, sustained injuries in the accident, but no official cause of the accident has been declared.last_img read more