Sales Increased by 25% in the Second Half of 2025, Phapros Achieves 869% EBITDA Growth

JAKARTA, July 28, 2025 – Amid various global and domestic economic challenges, PT Phapros Tbk (PEHA), a leading national pharmaceutical company, recorded a 25 percent year-on-year increase in consolidated sales growth for the first half of 2025. This sales growth was driven by several product segments, including 81 percent from the over-the-counter (OTC) segment and 79 percent from the branded prescription drug segment.

The Acting CEO of PEHA, Ida Rahmi Kurniasih, commonly known as Ida, stated that the high year-on-year sales growth in the first half of 2025 was driven by revenue from two key product segments: OTC drugs at IDR 93 billion and branded prescription drugs at IDR 112 billion.

"The largest contribution to the growth in branded prescription drug sales came from the Modern Outlet and Hospital market segments, which grew by over 30 percent, while the OTC segment was supported by Retail and Tender segments," she said.

Ida added that the strong performance in the first half of 2025 was a result of hard work from the entire Phapros team, implementing strategies such as strengthening partnerships with distributors, product portfolio restructuring, disciplined execution, new product launches, and cost efficiency. This also reflects the company's efforts to improve its fundamental performance and strengthen synergies as a Member of Biofarma (a State-Owned Pharmaceutical Holding). She further mentioned that the sales growth in the first six months of 2025 was an important indicator for the company to achieve its target of double-digit sales growth by the end of the year.

Cost Efficiency and Impact on Company Profits

The company's cost restructuring strategy throughout 2025 has shown significant results, with the cost of goods sold (COGS) being reduced to align with sales growth, indicating efficiency. Several costs have also been corrected, including a 7.3% reduction in operating expenses in the first half of 2025, reaching IDR 181 billion compared to IDR 195 billion in the same period last year. PEHA also successfully reduced marketing and distribution expenses by 13.5% YoY, with operating profit rising by 219%, or IDR 39 billion, compared to the previous period, which was still in a loss.

As a result of the sharp increase in sales and successful cost restructuring strategies, the company, as reported in its financial statements, achieved a significant year-on-year increase in net profit by 105 percent, amounting to IDR 2.5 billion, compared to a net loss of IDR 49 billion last year. From an EBITDA perspective, the company also recorded a growth of 869 percent, or IDR 62.5 billion, compared to last year's negative EBITDA. In the first half of 2025, Phapros also successfully reduced its short-term liabilities by 27%.

Ida explained that amidst the intense competition, one of the strategies implemented since mid-2024 has been Phapros' more selective prioritization of high-margin pharmaceutical products. She cited that out of around 200 Marketing Authorization Numbers, the company focuses on selling 54 products. This strategy has proven successful, making research, marketing, and working capital costs more efficient and effective, which directly impacted the increase in EBITDA and net profit in the first half of the year.

Future Growth Strategy and New Product Innovations

Innovation is a key element to support sales growth. The latest research conducted by the PEHA R&D team has significantly boosted sales through government drug tenders. By launching a new OAT (anti-TB drug) Category 1 Daily Dose product that has passed clinical trials and received NIE from the Food and Drug Monitoring Agency (BPOM), Phapros opens the opportunity to actively participate in tuberculosis (TB) control and treatment in Indonesia. In the near future, this OAT formulation will also be produced for the regular market, increasing access for those in need.

"The entire Phapros team is working hard to face both external and internal challenges. As the market weakens and drug prices become increasingly competitive, PEHA continues to adapt and improve its operations for greater efficiency and competitiveness. We also continue to innovate through new products and designs to remain relevant. As of June, Phapros has launched three new products out of the six products targeted for release in 2025. These new products are from the antibiotic and TB therapy drug categories. Moving forward, these products are expected to be 'new ammunition' for the company's sustainable growth. Therefore, we are optimistic that PEHA's performance will continue to improve, with a sales growth target of at least 18% in 2025," Ida emphasized on Tuesday, June 28, 2025.

Ida stressed that Phapros is currently focused on executing five main strategies in its business and financial transformation. The first is to strengthen sustainable finances through restructuring of bank debt and efficiency in all aspects. The second is to enhance customer satisfaction by strengthening product commercialization and distribution. The third is to develop the business and product portfolio through strengthening R&D and strategic partnerships, including expanding export markets. The fourth is business system and process transformation by strengthening the supply chain, driving innovation in business processes from upstream to downstream, and digitalization across all lines. The fifth is optimizing culture and human resources through human capital transformation and talent development.

"These five main strategies have been underway since last year and will continue to be the focus in 2025 to strengthen the business fundamentals and increase sales, thus ensuring sustainable profitability as evidenced throughout the first half of 2025," Ida concluded.