Maintain Better Company Performance
Jakarta, July 31, 2019 – PT Kalbe Farma Tbk and Subsidiaries (“Kalbe” or “the Company”) today announced net sales of Rp 11,179 billion for the first semester of 2019, an increase of 7.7% compared to the same period last year of Rp 10,381 billion.
“Supported by gradual improvement of Indonesia macroeconomic conditions in first half of 2019, the Company able to maintain its positive and stable top line growth and net profit,” 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 11,179 billion in the first semester of 2019, or grow by 7.7%. Sales growth was mostly driven by sales volume.
Gross profit was up by 3.7% to Rp 5,177 billion in the first semester of 2019. Gross profit margin declined to 46.3% from 48.1% in the same period last year, on the back of change of product portfolio. To maintain margin going forward, the Company will continue to implement combine product mix management and operating efficiency improvement.
Profit before tax grew by 3.5% in the first semester of 2019, with profit before tax ratio declined to 15.1%, compared with 15.7% in the same period last year. In line with new product development effort, the Company recorded higher cost 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 income amounted to Rp 1,258 billion in the first semester of 2019, increased 3.5% compared to first semester of 2018.
Taking into account the macroeconomic condition and competitive landscape, the Company maintain net sales growth target of 6% - 8%, the same rate of net profit growth. Profit before tax margin remains unchanged in the range of 14.5% – 15.5%. The Company allocates capital expenditure budget of Rp 1.0 – 1.5 trillion, for production and distribution capacity expansion, also additional 0.5 trillion for digital transformation and R&D in biosimilar. Our dividend policy is 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 1,219 billion or 50% of 2018 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, Zee, 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).