Successful Marketing Transformation Step Boosts PEHA Sales by 79% in Q1/2025 for Over-the-Counter (OTC) Medications

JAKARTA, May 27, 2025 – Amid various global and domestic economic challenges, PT Phapros Tbk. (PEHA), a leading national pharmaceutical company, successfully recorded a 79% year-on-year (YoY) sales growth in the over-the-counter (OTC) segment, which refers to medicines that can be sold without a doctor's prescription, in the first quarter of 2025. PEHA’s strategy in marketing transformation and strengthening its product portfolio has successfully increased OTC sales by 79% in Q1/2025, amounting to IDR 43 billion, compared to Q1 2024, which recorded IDR 24 billion.

The Acting President Director of PT Phapros Tbk., Ida Rahmi Kurniasih, stated that since the beginning of 2025, Phapros has undertaken a transformation in marketing for each of its products to drive sales. This includes strengthening the OTC product market by utilizing digital media and supporting government programs through tenders, both nationally and regionally. So far, the strategies implemented have had a tangible impact, with OTC product sales growing by 79% YoY in Q1/2025. Key OTC products contributing to this growth include the Antimo Group, Becefort, Livron B Plex, and Noza.

Another strategy has been focusing on the regular market for prescription drugs (ethical) both in network hospitals and private hospitals. This move has also successfully increased ethical product sales in Q1/2025, which grew by 40% YoY.

The growth of OTC and ethical product sales has positively contributed to Phapros' overall sales growth of 17.23% YoY in Q1/2025. PEHA successfully recorded sales of IDR 200.67 billion in Q1/2025, an increase of 17.32% compared to Q1/2024, which was IDR 171.04 billion. This success has had a positive impact on the company's gross profit growth, which increased by 22% YoY, and a surge in operating profit by 118% YoY.

Ida Rahmi mentioned that the sales growth in the first three months of this year is an important indicator for the company to achieve its target of double-digit sales growth by the end of the year. The outstanding achievement in Q1/2025, Ida said, is the result of the hard work of all Phapros employees through various strategies, such as strengthening cooperation with distributors, product portfolio restructuring, disciplined execution, launching new products, and cost efficiency. This also serves as evidence of the company's efforts to improve its fundamental performance and strengthen synergies as a Member of Biofarma (State-Owned Pharmaceutical Holding).

Ida explained that amidst intense competition, one of the strategies implemented since mid-2024 is for Phapros to be more selective in prioritizing high-margin products. She cited that, out of approximately 200 marketing authorizations held by the company, Phapros focuses on the sale of 54 products. This strategy has been effective, making research, marketing, and working capital costs more efficient and effective.

The latest research by Phapros' R&D team has significantly boosted sales through government program drug tenders. By launching the new OAT (anti-TB drug) Category 1 Daily Dose, which has passed clinical trials and obtained a marketing authorization from the National Drug and Food Control Agency (BPOM), Phapros opens opportunities to actively participate in controlling and treating tuberculosis (TB) in Indonesia. In the near future, this OAT formulation will also be produced for the regular market, thus increasing access for those in need.

"All of Phapros' employees are working hard to face various external and internal challenges. Despite the market being somewhat weakened and drug prices becoming more competitive, PEHA continues to adapt and improve operational efficiency to remain competitive. We are also continuing to innovate with new products and designs to stay relevant. The new product for TB treatment, which obtained its marketing authorization in mid-2024, has contributed positively to PEHA's growth. We are also preparing to launch more innovative products in 2025, for both ethical, OTC, and Branded Generic Drugs (OGB) segments. Therefore, we are optimistic that PEHA’s performance in 2025 will improve, with a sales growth target of at least 15%," emphasized Ida on Tuesday, June 3, 2025.

Cost Efficiency in Production and Operating Expenses
The company’s cost restructuring strategy has also had a positive impact, leading to a decrease in Cost of Goods Sold (COGS) and operating expenses. Compared to the same period, PEHA’s COGS has decreased by 1.8%, from 57.4% to 55.6% of sales. Operating expenses in Q1/2025 also decreased by 7%, amounting to IDR 89.17 billion, compared to IDR 72.86 billion in the same period last year. PEHA also managed to cut marketing and distribution expenses by 11% YoY. Additionally, administrative and general expenses decreased by 5% YoY.

The market expansion and sales strategy, improvements in distribution, new product innovations, and cost restructuring have led Phapros to record an operating profit of IDR 3.64 billion in Q1/2025, up 118% YoY, compared to a loss of IDR 19.29 billion in Q1/2024. "From an operational standpoint, Phapros continues to record gross profit and operating profit. Therefore, we will continue working hard and are optimistic that PEHA’s performance in 2025 will grow positively."

In Q1/2025, Phapros also successfully reduced short-term liabilities by 17%. Meanwhile, PEHA's assets in Q1/2025 increased by 3%, reaching IDR 1.47 trillion, compared to IDR 1.43 trillion in the same period last year.

Ida added that to support these strategies, PEHA is backed by solid and healthy cash flow. The company had cash and cash equivalents as of March 31, 2025, amounting to IDR 51.65 billion, significantly higher than IDR 6.17 billion as of March 31, 2024. "After implementing various strategies at the beginning of 2025, we feel that we are on the right track. With continued hard work and synergy from all parties, we are confident that PEHA’s performance in 2025 will grow positively," emphasized Ida.