Press Release No. 001/KFCP-DIR/PR/II/13
Jakarta, February 4, 2013 – PT Kalbe Farma Tbk and its subsidiaries (“Kalbe” or “the Company”) today announced the Company’s indicative performance (unaudited) for the year 2012. Indicative consolidated net profit reached Rp 1.73 Trillion for year 2012, an increase of approximately 17% compared to Rp 1.48 Trillion last year, mostly driven by strong top line growth and higher efficiency. Indicative earnings per share increased by approximately 17%, to Rp 36.9 per share from Rp 31.6 per share.
“Based on the unaudited financial statement, Kalbe booked a robust performance in 2012. We achieved strong growth and profitability, in line with our target” stated Vidjongtius, Kalbe’s Finance Director and Corporate Secretary. “Sales recorded solid growth, supported by healthy consumption volume, as well as higher contribution from the Distribution and Logistic Division. We are pleased to see that the strategy to increase marketing effectiveness has produced such positive result. With excellent execution, we will continue to implement the strategies to support sustainable demand growth.”
Kalbe booked net sales of Rp 13.63 Trillion for the year 2012, up by 24.9% compared to Rp 10.91 Trillion for the year 2011.
Gross profit grew by 17.5% compared to year 2011. Meanwhile, gross profit margin decreased from 50.9% in 2011 to 47.8% in 2012. This was mainly the impact of change in business mix in 2012 whereby contribution from Distribution and Logistics Division increased from 35% in 2011 to 38% in 2012. Despite the weakening of the Rupiah exchange rate as a result of the European financial crisis, raw material prices in overall remained stable, thus creating no significant pressure to input costs. On labour cost, the Company expects that the hike in regional minimum wage starting in 2013 will not significantly impact margin as labour cost is not a major cost component. To anticipate the impact of lower margin, the Company will consistently control production costs through lean manufacturing program and sustainable improvement in business process through Continuous Improvement (Conim) program to achieve higher effectiveness and efficiency.
As a percentage of net sales, operating profit margin decreased to 16.2% in year 2012 from 18.0% in year 2011, mostly due to the decrease of gross profit margin. Operating expenses declined by 1.2% from 32.8% to 31.6% to net sales.
Performance of Each Division
Prescription Pharmaceuticals Division recorded strong sales growth of 18.4% in 2012, mostly driven by volume growth and new product contribution. To anticipate the surge in unbranded generic demand, our production facility for unbranded generics in Cikarang has started to operate in early 2012. In the mean time, the Company continues to strengthen its product portfolio by entering the cancer therapy segment and is currently about to complete the oncology drugs production facility.
Consumer Health Division recorded healthy growth of 16.8% in 2012. Sales growth was supported by the growth of ready-to-drink products and energy drink, contribution of new products and steady growth of over-the-counter drugs. The Company’s strategy to enter ready-to-drink segment showed encouraging results with strong growth of natural coconut water drink Hydro Coco as well as fruit and vegetable juice Tipco and Original Love Juice. Through acquisition in July 2012, the Company has gained access to fruit juice production facility, ready to support further expansion. The Company has also launched Nitros – liquid energy drink in convenient packaging to provide ease of consumption.The Company will continue to strengthen its product portfolio by introducing new consumer products with health benefits for consumers.
Nutritionals Division also booked strong sales growth of 24.5%. Sales volume steadily rose, supported by effective marketing strategy to build stronger relationship with consumers. We continued to develop Kalbe e-store - an online shopping website created to provide convenience for consumers to purchase Kalbe nutritionals products through Kalbe Home Delivery (KHD) free-of-charge delivery service and Kalbe Family Rewards Card. At present, Kalbe e-store provides delivery in 25 cities in Indonesia. To expand the nutritional product portfolio, Kalbe has entered into a joint venture agreement to form PT Kalbe Milko Indonesia to be the manufacturing basis for ready-to-drink nutritional products.
Distribution and Logistics Division recorded strong sales growth of 33.7% in 2012. Sales growth of the Distribution and Logistics Division reflected the positive impact of adding PT Abbott Indonesia as a new principal since the end of September 2011.
In 2013, the Company’s strategies are geared towards driving healthy top line growth with the following details:
Strengthening business portfolio through product innovation, as well as merger & acquisitions.
Expediting Go Global through product launchings and strengthening of distribution network in the global market, supported by all forces in Kalbe Group business to achieve Global Brand.
Improving sales and marketing effectiveness, opening of new market opportunities, and strengthening distribution to expand product availability and presence.
Continuously developing competent leaders who embody the “Kalbe Panca Sradha” characters.
In 2013, the Company targets to achieve sales and earnings growth of 15% - 18%, with operating profit margin within the range of 16.0% - 17.0%. Earnings per share is forecast to grow by 15% - 18%. To support future growth, the Company has set aside a capital expenditure budget of Rp 1.0 – Rp 1.5 Trillion, mostly to be used to increase production capacity. The Company plans to cancel all of its outstanding treasury shares, subject to approval from shareholders in EGMS to be convened in May 2013.
Kalbe at a Glance
PT Kalbe Farma Tbk. (“Kalbe”) is one of the largest publicly-listed pharmaceutical companies in Southeast Asia. Kalbe has a broad and strong portfolio of brands in prescription pharmaceuticals (Cefspan, Brainact, Broadced, etc), OTC pharmaceuticals (Woods, Promag, Mixagrip, Komix, etc), energy drinks (Extra Joss, E-Juss) and nutritional products (Milna, Prenagen, Diabetasol, etc), complemented with a robust distribution arm covering much of the Indonesian archipelago. Since 1991, Kalbe’s shares have been listed on the Indonesia Stock Exchange (IDX: KLBF).