Bio Farma 'Post-Covid' Earnings Slump 50 Percent in 2022

TEMPO.CO, Bandung - The consolidated earnings logged by state-owned pharmaceutical holding firm Bio Farma nosedived to Rp21.54 trillion in 2022, which is a 50.4 percent drop compared to the previous year.  Meanwhile, the company’s net profit last year was Rp505.89 billion, which is a 74 percent drop compared to 2021. 

The total Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of the SOEs holding is Rp1.977 trillion, or a drop of 51.6 percent compared to the previous year. 

Bio Farma's revenue in 2022 reached Rp 11.026 trillion, down 63.6 percent compared to 2021.

Indicators of the company's financial lack of performance, among others, is due to the completion of the Health Ministry’s Covid-19 vaccination program, which was mentioned by the Deputy Director of PT Bio Farma Soleh Ayubi, on June 20.

In his written statement, Soleh mentioned that another factor affecting the holding's financial performance was the decline in demand for Covid-19 diagnostic test kits since mid-2022. Vaccines and test kits have previously dominated sales contribution in recent years.

The company aims to maximize product sales by up to Rp18 trillion for non-coronavirus products. 

Despite the dropped earnings, Bio Farma's performance in 2022 is relatively above that in 2021. In 2023 Bio Farma stated it will make improvements to the company's fundamentals to adapt to changing health market conditions due to changes in consumption patterns.

AHMAD FIKRI

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