Solid Start to 2026, Medela Potentia Profit Grows 7.4%

Healthcare distributor and manufacturer Medela Potentia (MDLA) posted solid performance in the first quarter of 2026, with revenue rising 3.4% year-on-year, driving a 7.4% increase in profit for the period to Rp 119.32 billion. The growth was supported by stronger pharmaceutical product sales and operational efficiency across its distribution network.

Despite ongoing economic and business challenges this year, MDLA booked net sales of Rp 4.03 trillion as of March 31, 2026, up from Rp 3.9 trillion in the same period last year.

Pharmaceutical products remained the company’s main contributor, generating Rp 3.26 trillion in sales, higher than Rp 2.7 trillion in the first quarter of 2025. Medical devices contributed Rp 394.5 billion, while healthcare products added Rp 380.2 billion.

Gross profit increased to Rp 382.53 billion from Rp 372.35 billion a year earlier. Operating profit also rose to Rp 151.23 billion from Rp 146.14 billion. Profit attributable to owners of the parent entity reached Rp 116.66 billion, compared with Rp 110.28 billion in the same period last year.

Earnings per share stood at Rp 8.33, slightly lower than Rp 10.5 in the corresponding period of 2025 due to an increase in issued capital, resulting in share dilution.

Meanwhile, cost of goods sold rose from Rp 3.5 trillion to Rp 3.65 trillion during the first quarter, mainly driven by higher raw material and packaging expenses, which climbed to Rp 5.8 billion from Rp 3.3 billion previously.

Production costs also increased from Rp 5.5 billion to Rp 8.14 billion. Nevertheless, MDLA said the increase remained relatively manageable and continued to support growth in operating profit.

Monitoring Geopolitical Risks

Although signs of easing geopolitical tensions in the Middle East have recently emerged following statements by US President Donald Trump, MDLA said it continues to closely monitor global developments.

While the company does not have significant direct operations in countries directly involved in the conflict with Iran, broader economic impacts from the geopolitical situation could indirectly affect operations and financial performance.

In its first-quarter 2026 financial report, MDLA and its subsidiaries highlighted several potential risks to operations, financial position, and performance, including volatility in global energy and commodity prices, disruptions in global supply chains and logistics, broader macroeconomic uncertainty affecting customer demand, as well as fluctuations in foreign exchange and financial markets.

The company reaffirmed its commitment to closely monitor global developments, including any potential escalation of conflict in the Middle East, and said it would conduct further assessments on the possible impact in upcoming reporting periods.

Long-Term Healthcare Market Potential

Amid domestic and global challenges, the pharmaceutical and medical device distributor remains optimistic about Indonesia’s long-term healthcare market prospects. Targeting growth above the pace of GDP expansion, the company said it continues to focus on strengthening operational fundamentals to support sustainable growth.

Distribution expansion, operational efficiency, and technology adoption remain key strategies to reduce costs and improve services.

With the largest population in ASEAN, Indonesia represents a major healthcare market opportunity. Relatively low healthcare spending per capita, which stood at around $158.90 in 2021 based on the World Bank data, is expected to continue rising as public awareness of health issues improves and demand for clinical services increases.

After more than four decades in operation, Medela Potentia and its subsidiaries have grown into one of Indonesia’s leading integrated distribution platforms, providing nationwide access to healthcare products, including its own medical device product lines.

Distribution remains central to the company’s strategy, with ongoing expansion across the archipelago as well as initial international market penetration into Cambodia and Timor-Leste. MDLA noted that fixed distribution costs remain one of the main operational challenges.

To address this, the company has prioritized technology and AI development, including the use of expert systems and machine learning to improve demand forecasting accuracy, helping balance inventory levels and working capital.

AI systems are also being used to optimize stock levels, reduce capital tied up in overstock, and prevent stock shortages. The company is also developing a transportation management system designed to calculate the most efficient delivery routes and standardize shipment planning.

As part of efforts to strengthen distribution capabilities and improve operational efficiency, construction of a warehouse and branch office for Anugrah Argon Medica (AAM), one of MDLA’s subsidiaries, in Medan is expected to be completed by the end of this year, further strengthening distribution coverage in Sumatra.

Last year, MDLA also acquired National Distribution Center (NDC) 1, a 10,000-square-meter facility with a capacity of 13,525 pallets located in the Jababeka II Industrial Estate in Cikarang, West Java. The facility had already been an integral part of the company’s distribution infrastructure for more than a decade and was previously utilized through a lease scheme from an affiliated company.

MDLA has also acquired 2.7 hectares of land in the Jababeka I Industrial Estate for the development of AAM’s NDC 2. The expansion is expected to further strengthen warehouse capabilities while improving delivery speed and service quality for customers.

“Strengthening our distribution network, developing warehouse infrastructure, and expanding our product portfolio are key steps to maintain our growth momentum,” said PT Anugrah Argon Medica President Director Juliwaty.

This year, the company has also introduced several initiatives to expand its services. In early February, AAM partnered with Alcon to launch Systane Complete Multi-Dose Preservative-Free, an innovative eye drop solution targeting various dry eye conditions.

During the same month, MDLA through AAM also entered into a strategic partnership with Compawnion to expand the distribution of premium pet food products, addressing growing demand in Indonesia’s pet care industry, which according to Mordor Intelligence is projected to reach $1.83 billion by 2031.