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Maintaining Positive Top Line Growth

Maintaining Positive Top Line Growth

Press Release No. 010/KFCP-DIR/PR/III/18

Jakarta, March 29, 2018 – PT Kalbe Farma Tbk and Subsidiaries (“Kalbe” or “the Company”) today announced the audited results of the Company for the year 2017. Consolidated net sales grew by 4.2% to reach Rp 20,182 billion from Rp 19,374 billion in the same period in 2016.

“Throughout 2017, the Company maintained a positive revenue growth across divisions, despite below expectation. The deceleration of the Company’s growth was widely affected by the unconducive macro setting, particularly weakening purchasing power,” stated Bernadus Karmin Winata, Kalbe’s Finance Director and Corporate Secretary. “Going forward, Indonesia’s macroeconomic and purchasing power recovery are expected to support our growth improvement.”

The Company booked net sales of Rp 20,182 billion in 2017, or growing by 4.2% compared to Rp 19,374 billion booked in the previous year. Sales growth was mostly driven by volume in general.

Gross profit grew by 3.4% to Rp 9,812 billion. The gross profit margin declined to 48.6% from 49.0% the year before, mostly arising from product mix impact and production cost increase. To sustain margin going forward, the Company will continue to combine product mix management and production cost efficiency.

Operating income ratio reached 15.9%, and grew by 5.1% compared to the last year. The Company will continue to manage its marketing and sales effectiveness and monitor other operating expenses to maintain operating profit growth.

Our net profit increased by 4.5% to reach Rp 2,404 billion from Rp 2,300 billion in 2016. Net profit growth was mostly supported by top line growth, as well as marketing expense control.

Taking into account the macroeconomic and competitive landscape, the Company targets net sales growth in 2018 by 7%-9% with the same rate of growth of net profit. The targeted operating profit margin is expected to be stable in the range of 14.5% – 15.5%. The Company allocates capital expenditure budget of Rp 1.0 – 1.5 trillion, mostly for production and distribution capacity expansion. Our dividend policy is raised in the range of 45% - 55% payout ratio, depending on cash availability and internal fund requirement.

Kalbe at a Glance

PT Kalbe Farma Tbk. (“Kalbe”) was established in 1966 and is one of the largest publicly-listed pharmaceutical companies in Southeast Asia. Kalbe has four main divisions managing a broad and strong portfolio of brands; prescription pharmaceuticals division (Cefspan, Brainact, Broadced, etc), consumer health division comprising over-the-counter drugs (Promag, Mixagrip, Komix, Woods, Fatigon, etc) as well as ready-to-drink and energy drink products (Hydro Coco, Extra Joss), nutritionals division (ChilKid, Prenagen, Diabetasol, etc), and distribution division. Kalbe currently has more than 35 subsidiaries and 12 production facilities with international standards, supported by around 17,000 employees, spread in 73 branches across Indonesia. Since 1991, Kalbe’s shares have been listed on the Indonesia Stock Exchange (IDX: KLBF).


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