JAKARTA - PT Darya-Varia Laboratoria Tbk (DVLA) is reportedly preparing capital expenditure (capex) budget worth IDR 209 billion for 2024, which will mostly be allocated for expansion, both in terms of facilities and products.

Met at Annual Public Expose 2024 of DVLA, Celso Paz Lim, Director of Finance of DVLA, revealed that as of March 2024, the company has spent 20-30% of the budgeted capex, equal to IDR 41.8 to 62.7 billion.

“Most of it is going to be for expansion, and also upgrading our facilities to make sure we are in compliance with GMP and local regulatory authorities,” Lim said.

Furthermore, the expansion in question involves the expansion of capacity of DVLA’s current facilities, as well as product expansion. “A mixture of both,” Lim added.

It is known that Darya-Varia owns two units of production facilities; one in Gunung Putri, for manufacturing liquid dosage forms and ointment, and another in Citeurerup, for manufacturing sterile injections and solid dosage forms.

During the Public Expose, the management of DVLA agreed upon its strategy of product innovations to expand their portfolio, both from prescription business line and consumer health products.

“It is a layered strategy. Our existing brands will be boosted to increase market share whilst we branch out to new markets,” said Ian Martin Wibawa Kloer, President Director of DVLA.

Until Q1 2024, DVLA saw 4% year-on-year (yoy) growth in its revenue to IDR 532 billion, supported by rapid 17% yoy surge in its consumer health segment to IDR 252 billion as of March 2024. As a result, its net profit also increased 11% yoy to IDR 67 billion.

“We see that the trend is improving,” said Lim, “we see this improving until May. So far, we are quite performing according to the track.”

According to Kloer, DVLA aims for moderate growth rate this year, only aiming for 6-7% year-on-year (yoy) increase. (ZH)