PT Indofarma Tbk (INAF) recorded a 99.65% decrease in profit attributable to owners of the parent entity to Rp27.58 million in 2020 compared to the same period the previous year, reaching Rp7.96 billion.

Quoting Indofarma's annual report for the 2020 financial year on Tuesday (27/4), this condition was mainly due to an increase in income tax expense and an allowance for impairment losses due to the application of the Indonesian Financial Accounting Standards of PSAK 71 valued at Rp38 billion, which was a loss in 2020.

However, the company managed to increase net sales by 26.22% to Rp1.71 trillion in 2020 from the previous year, Rp1.35 trillion. Sales of medical devices and drugs supported this increase in sales for handling Covid-19.

The cost of goods sold increased by 18.59% from Rp1.108 trillion to Rp1.31 trillion due to increased net sales.

Although the cost of goods sold increased, the ratio of cost of goods sold to net sales decreased