FINANCIAL PERFORMANCE ASSESSMENT OF PT KIMIA FARMA TBK IN COMPARISON WITH OTHER LOCAL AND REGIONAL COMPANIES

• Main Author: Permata Dewi, Giovanni
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/78735
• Institution: Institut Teknologi Bandung

In recent years, Indonesia as a developing country has been facing with many different conditions, such as political instability, high population size, and unstable economic growth. For economic growth itself, Indonesia’s GDP is fluctuating recently. One of the things that affect Indonesia’s economy condition is the presence and activity of many business sectors and pharmaceutical industry is one of them. For pharmaceutical sector itself, based on Kementrian Perindustrian Replubik Indonesia, this sector is said to be having a positive growth, which is up to Rp 37 trillion in 2010. PT Kimia Farma Tbk as the first and one of the leading pharmaceutical company in Indonesia is expected to have a positive growth from year to year as well. In reality, PT Kimia Farma Tbk’s sales does increase recently but it followed by the decrease in its net profit margin so it would be interesting to know the real condition of its financial performance. To make the financial performance assessment clearer, PT Kimia Farma Tbk will be compared with its local and regional benchmarks, which are PT Kalbe Farma Tbk, PT Indofarma Tbk, Eu Yan Sang International Limited, and Apex Healthcare Berhad. The methods that will be used for the assessment include financial ratio analysis (Trend analysis, Cross section analysis, and Growth rate comparison), DuPont analysis, BUMN framework, and Moody’s framework. The assessment shows that overall, PT Kimia Farma Tbk has a good financial performance in 2010 – 2014 but still, there are some recommendations for PT Kimia Farma Tbk that can be used to improve its financial performance such as provide its own raw material, managing other cost and expenses, improve operating efficiency, limiting investments, focus on selling high-margin product. Some recommendations also will be given for further research, which are use capital structure method, measure company’s value by using valuation, and the last one is for current and future investor, which is to invest in Kimia Farma.