Expecting a Better Growth
Press Release No. 014/KFCP-DIR/PR/IV/19
Jakarta, April 30, 2019 – PT Kalbe Farma Tbk and Subsidiaries (“Kalbe” or “the Company”) today announced net sales of Rp 5,366 billion for the first quarter of 2019, an increase of 7.0% compared to last year first quarter of Rp 5,015 billion.
In the first quarter of this year, align with the Company’s target, Kalbe’s net sales growth showed a positive trend, driven by volume growth in line with intensive marketing activities as well as distribution penetration,” stated Bernadus Karmin Winata, Kalbe’s Finance Director and Corporate Secretary. “We will continue our expansion plan and new product launching to offer a more comprehensive product portfolio. On the back of a relatively stable Indonesian macroeconomic setting, we believe we can achieve the targeted growth for 2019, while keeping an eye on the impact of Rupiah movement.”
Gross profit was up by 2.9% to Rp 2,498 billion in the first quarter of 2019. Gross profit margin declined to 46.6% from 48.4% in the same period last year. This was due to higher contribution of sales from distribution and logistics business. To maintain margin going forward, the Company will continue to combine product mix management and operating efficiency improvement.
Operating profit in the first quarter of 2019 is Rp. 794.5 billion grew by 1.3%, with operating profit ratio reached 14.8%, down from 15.6% in the same period as last year driven by higher cost of goods sold. The Company will continue to manage its marketing and sales effectiveness and monitor other operating expenses to maintain operating profit level.
Net profit owners of the parent company grew by 1.0% to Rp 595.1 billion in the first quarter of 2019 compared to Rp 589.4 billion in the same period last year. Net profit growth was lower compared to net sales growth, mostly due to the decline in gross profit margin.
Taking into account the macroeconomic and competitive landscape, the Company maintains net sales growth target of 6% -8% with the same rate of net profit growth. The operating profit margin is expected 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 maintained at the level of around 45% - 55% payout ratio, by taking into account the 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 healthy drink products (Hydro Coco, Extra Joss), nutritionals division (ChilKid, Prenagen, Diabetasol,Zee etc), and distribution division. Kalbe currently has 38 subsidiaries and 12 production facilities with international standards, supported by around 17,000 employees and 1,500 sales and marketing personnel, spread in 76 branches across Indonesia. Since 1991, Kalbe’s shares have been listed on the Indonesia Stock Exchange (IDX: KLBF).