Chitose Turns Profit and Prepares Expansion into Medical and Laboratory Equipment Trade

Furniture manufacturer PT Chitose Internasional Tbk (CINT) is preparing for business expansion by entering the wholesale trade of laboratory equipment, pharmaceutical tools, and medical devices. This strategic move follows the company’s strong performance in 2023.

Kazuhiko Aminaka, President Director of Chitose, stated that in 2023, the company achieved impressive results, with revenue rising 4.41% to IDR 456.91 billion, compared to IDR 437.62 billion in 2022. The largest revenue contributors came from the office equipment segment (57.23%) and the education segment (39.54%).

“This revenue helped the company recover from a net loss of IDR 4.15 billion in 2022 to a net profit of IDR 5.86 billion in 2023. Net profit attributable to the parent entity reached IDR 4.20 billion, compared to a loss of IDR 5.82 billion the previous year,” he explained during a public expose following the Annual General Meeting of Shareholders (AGMS) held at Chitose’s showroom in Cimahi, West Java, on Monday (April 22, 2024).

Aminaka added that the company was able to boost net sales and improve profitability thanks to its agile response to market dynamics and strong commitment to customer satisfaction.

“Riding this wave of optimism, the company has crafted strategies to optimize every growth opportunity. On the product side, we will continue developing new offerings tailored to market needs, while also expanding market penetration, especially in the private sector,” he said.

One of the key AGMS outcomes was the approval to distribute IDR 5 billion in dividends from the 2023 net profit to shareholders.

As part of its strategic plan, the company will add a new line of business under the Indonesian Standard Classification of Business Fields (KBLI 46691) — wholesale of laboratory, pharmaceutical, and human medical equipment — based on a feasibility study conducted by appraisal firm MSE (Syarief, Endang & Partners), which deemed the plan viable and received AGMS approval.

With the additional KBLI classification, Chitose will now be able to engage in wholesale activities for hospital beds (manual and electric), school clinic examination beds (UKS), IV poles, patient overbed tables, emergency beds, baby cribs, bedside cabinets, and other relevant health equipment such as ICU beds, wheelchairs, and OBGYN beds.

Susanto, Chitose’s Director of Sales & Marketing, noted that the company continues to prioritize the domestic market as its main sales target while gradually expanding international reach.

In 2023, local sales accounted for IDR 434.33 billion, or 95.06% of net sales, while export sales contributed IDR 22.58 billion, or 4.94%.

Looking ahead to 2024, Susanto expressed optimism about the furniture industry outlook, expecting stronger growth compared to 2023. This optimism is supported by macroeconomic stability at the end of 2023 and continued government support for the advancement of Indonesia’s furniture sector.

“The government’s strong push for the furniture industry is expected to serve as a key pillar of growth in 2024,” he concluded.