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Growing in the Challenging Environment

Growing in the Challenging Environment

Press Release No. 011/KFCP-DIR/PR/III/19 

Jakarta, March 29, 2019 – PT Kalbe Farma Tbk and Subsidiaries (“Kalbe” or “the Company”) today announced the audited results of the Company for the year 2018. Consolidated net sales grew by 4.4% to reach Rp 21,074 billion from Rp 20,182 billion in the same period in 2017.

“Throughout 2018, the Company maintained a positive revenue growth across divisions, compared to a year before. The deceleration of the Company’s growth was widely affected by global macro condition, where Rupiah weaken due to rising US interest rates”, stated Bernadus Karmin Winata, Kalbe’s Finance Director and Corporate Secretary. Along with Rupiah stability at end of 2018, we hope going forward; economic condition is more stable and purchasing power recovers to support the improvement of the Company’s performance.

Sales growth in 2018 was supported by the Company’s Prescription Pharmaceuticals Division that booked a 2.8% sales growth to Rp 4,822 billion and accounting 22.9% of Kalbe’s total net sales for the year. Kalbe’s Consumer Health Division registered a 4.4% sales growth to Rp 3,569 billion and contributing 16.9% of the Company’s total net sales. The Nutritionals Division’s net sales amounted to Rp 6,308 billion in 2018, growing 3.4% from the previous year’s result and accounting 29.9% of Kalbe’s total net sales, while the Distribution & Logistics Division grew its net sales by 6.8% from Rp 5,970 billion to Rp 6,375 and contributed the remaining 30.3% of the Company’s total net sales.

Gross profit grew by 0.36% to Rp 9,848 billion. The gross profit margin declined to 46.7% from 48.6% the year before, mostly due to Rupiah depreciation. To sustain margin going forward, the Company will continue to combine product mix management and production cost efficiency.

Income before Income Tax Expense ratio reached 15.7%, and grew by 2.0% 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. In 2nd semester of 2018, the Company increase prices on selective products for 3-5%.

Our net profit increased by 2.2% to reach Rp 2,457 billion from Rp 2,404 billion in 2017. 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 2019 by 6%-8% 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 1.5 – 2.0 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 76 branches across Indonesia. Since 1991, Kalbe’s shares have been listed on the Indonesia Stock Exchange (IDX: KLBF).


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