PRESS RELEASE No. 005/KFCP-DIR/PR/III/13
Jakarta, March 28, 2013 – PT Kalbe Farma Tbk (“Kalbe” or “the Company”) today announced the Company’s performance for the year 2012 based on Audited Consolidated Financial Statements for the year ending December 31, 2012 of PT Kalbe Farma Tbk and Subsidiaries.
The Company booked consolidated net profit of Rp 1.73 Trillion for year 2012, an increase of approximately 17.0% compared to Rp 1.48 Trillion last year, driven by strong top line growth and improved efficiency. Earnings per share increased by approximately 17.0%, to Rp 37 per share from Rp 32 per share.
“We are pleased with our strong performance in year 2012. Sales growth and profitability showed satisfactory achievement in line with our expectations,” stated Vidjongtius, Kalbe’s Finance Director and Corporate Secretary. “Overall, top line growth was driven by strong volume growth. We believe the strategy to increase marketing effectiveness has brought in positive results to support sales growth. In 2012, strong top line growth also reflected the impact of change in business mix with higher contribution from the Distribution and Logistics Division.”
Net sales reached Rp 13.63 Trillion in 2012, growing by 25.0%, compared to Rp 10.91 Trillion in 2011.
The Company booked gross profit growth of 17.7% compared to 2011. Significant growth of the Distribution and Logistics Division in 2012 has resulted in higher sales contribution from the Distribution and Logistics Division from 35% in 2011 to 38% in 2012 and subsequently caused gross profit margin to decline from 50.9% in 2011 to 47.9% in 2012.
In relation with the implementation of SFAS No. 1 effective since January 1, 2011 regarding presentation of financial statements, income statement no longer presents income from operations separately, but rather directly to the income before tax. If income from operations were to be stated separately, the ratio of income from operations in year 2012 would have decreased to 16.3% from 18.0% in the preceding year.
Income before tax grew by 16.1% compared to the previous year. The ratio of income before tax to sales declined to 16.9% from 18.2% in 2011, mostly due to the decrease in gross profit margin.
In 2012 the Company recorded strong sales growth, resulting in efficiency improvements of operating expenses, as the expenses did not grow at the same rate as the top line. The ratio of selling and marketing expenses to net sales improved to 26.2% from 26.6% in 2011. Meanwhile, the ratio of general and administrative and the ratio of research and development expense to net sales reached 4.8% and 0.7%, down from 5.4% and 0.8% in 2011. In overall, total operating expenses declined by 1.2% from 32.8% to 31.6% to net sales.
Performance of Each Division
Prescription Pharmaceuticals Division recorded sales of Rp 3.3 Trillion in 2012, up by 18.4% from the previous year. Sales growth was mostly driven by consumption volume and new products. With the implementation of the national health insurance system in 2014, the Company predicted that demand for unbranded generic would grow faster. Therefore, the Company has prepared a production facility dedicated for unbranded generic facility in Cikarang, which started operating in early 2012. To further strengthen the prescription pharmaceuticals product portfolio, the Company is currently preparing an oncology production facility.
Consumer Health Division recorded satisfactory performance with sales amount reaching Rp 2.1 Trillion, and growth of 16.7% in 2012. This healthy growth was supported by volume growth, particularly in ready-to-drink segment including the natural coconut water isotonic drink Hydro Coco and fruit and vegetable juices Tipco, as well as from the energy drink segment. New products and over-the-counter drugs continued to perform positively. To accelerate expansion in the ready-to-drink segment, through acquisition of PT Hale International in July 2012, the Company has obtained access to fruit juice production facility to support future growth. In the energy drink segment, the Company launched Nitros – liquid concentrated energy drink in convenient packaging. The Company will continue to strengthen product portfolio by launching new innovative products that offer health benefits and convenience for consumers.
Nutritionals Division achieved sales of Rp 3.0 Trillion, with strong sales growth of 24.5%. We believe that the satisfactory sales growth reflected the results of the strategy to increase marketing effectiveness to build closer relationship with consumers. Aside from actively conducting direct-to-consumers activities, we continue to build Kalbe e-store – our online shopping website created to provide convenience for consumers in purchasing Kalbe’s nutritional and consumer health products through Kalbe Home Delivery (KHD) service free of charge. Currently, Kalbe e-store serves 25 major cities in Indonesia. We also continue to develop Kalbe Family Rewards Card and Kalbe Customer Care as part of our efforts to provide value added and build closer relationship with consumers. To develop our nutritionals product portfolio, Kalbe has entered into a joint venture agreement to form PT Kalbe Milko Indonesia to build a ready-to-drink nutritional beverage production facility.
Distribution and Logistics Division recorded strong sales growth of 34.0% 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 by exploring merger & acquisitions.
Expediting Go Regional and eventually Go Global
Improving sales and marketing effectiveness, opening of new market opportunities, and strengthening distribution.
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), ready-to-drink products (Hydro Coco, Extra Joss, Nitros) 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).