Press Release No. 029/KFCP-DIR/PR/VII/18
Jakarta, July 31, 2018 – PT Kalbe Farma Tbk and Subsidiaries (“Kalbe” or “the Company”) today announced net sales of Rp 10,381 billion for the first semester of 2018, an increase of 3.1% compared to the first semester of 2017 of Rp 10,066 billion.
“In the midst of weak purchasing power in first half of 2018, the Company is striving to maintain its positive top line growth and stable margin,” stated Bernadus Karmin Winata, Kalbe’s Finance Director and Corporate Secretary. “Our focus is to preserve market share and maintaining cost efficiency, while keeping an eye on the impact of Rupiah movement. Backed by a conviction on the purchasing power recovery, we believe that the Company’s perfomance will accelerate in line with the market growth.”
The Company booked net sales of Rp 10,381 billion in the first semester of 2018, or growing by 3.1%. Sales growth was mostly driven by sales volume.
Gross profit was up by 1.4% to Rp 4,994 billion in the first semester of 2018. Gross profit margin declined to 48.1% from 48.9% in the same period last year, on the back of Rupiah depreciation. To maintain margin going forward, the Company will continue to combine product mix management and operating efficiency improvement.
Operating profit grew by 1.6% in the first semester of 2018, with operating profit ratio stable at 15.6%, compared to 15.8% in the same period in 2017. In line with new product development effort, the Company recorded higher for research and development activities. The Company will continue to manage its marketing effectiveness and monitor other operating expenses to maintain operating profit level.
Net profit amounted to Rp 1,216 billion in the first semester of 2018, stable compared to the same period last year.
Taking into account the macroeconomic condition and competitive landscape, the Company revises net sales growth target to 5% - 7% with the same rate of net profit growth. The operating profit margin remains unchanged 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, by taking into account the cash availability and internal fund requirement. The Company has paid out a dividend of Rp 1,172 billion or 49% of 2017 net income.
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, Dianeal, Broadced, etc), consumer health division comprising over-the-counter drugs (Promag, Mixagrip, Woods, Fatigon, etc) as well as energy drink and ready-to-drink products (Extra Joss, Hydro Coco), 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 74 branches across Indonesia. Since 1991, Kalbe’s shares have been listed on the Indonesia Stock Exchange (IDX: KLBF).