Press Release No. 015/KFCP-DIR/PR/IV/20
Jakarta, April 30, 2020 - In the first quarter of this year, Covid-19 virus outbreak made Indonesia face challenges to increase the economic growth. Under these conditions, Kalbe posted net sales of Rp 5,796 billion for the first quarter of 2020, an increase of 8.0% compared to the same period last year of Rp 5,366 billion.
The increase in sales was supported by the Company's Prescription Drugs Division which posted sales growth of 5.3% to Rp 1,397 billion, and accounted for 24.1% of Kalbe's total net sales in the first quarter of 2020. Consumer Health Division achieved an increase in sales of 6.9% to Rp. 996 billion with a contribution of 17.2% to the total net sales of the Company. The Nutrition Division's net sales stood at Rp 1,602 billion in the first quarter of 2020, growing 5.4% from the previous year's achievement and accounted for 27.6% of Kalbe's total net sales, while the Distribution & Logistics Division achieved a net sales increase of 13.5 % from Rp 1,587 billion to Rp 1,800 billion, and contributed 31.1% to the Company's total net sales.
Gross profit grew by 4.8% to Rp 2,617 billion in the first quarter of 2020. Gross profit to sales ratio fell to 45.2% from 46.6% for the same period a year earlier. This was caused by higher sales contribution from the distribution and logistics business. Profit before income tax in the first quarter of 2020 amounted to Rp. 887.6 billion grew by 11.7% with profit before income tax ratio reaching 15.3%, or an increase of 14.8% in the same period in the previous year. The company will continue to combine product portfolio management strategies, manage the effectiveness of sales and marketing activities, and monitor other operating costs to maintain profit levels before income tax.
Net income of the owners of the parent entity grew 12.5% to reach Rp 669.3 billion in the first quarter of 2020 compared to Rp 595.1 billion in the same period in the previous year. Higher net profit growth compared to net sales growth was mainly due to increased efficiency in operating costs.
To support the government and the community to be able to fight and get past the pandemic, Kalbe will continue to strive to improve services, produce and provide products that can improve public health. With the hope that Indonesia's Covid-19 pandemic conditions will improve in the second half of 2020, remain aware of the impact of the movement of the US dollar on the Rupiah, and keep monitor competitive conditions in the market, the Company maintains a net sales growth target of 6%-8% with a projected net profit growth of around 5%-6%. The company is also preparing a capital expenditure budget of Rp 1.0 trillion, which will be used to expand production and distribution capacity. The dividend distribution ratio is maintained at a ratio of 45% - 55%, with due regard to the availability of funds and internal funding needs.
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 supplement drink products (Hydro Coco, Extra Joss), nutritionals division (ChilKid, Prenagen, Diabetasol,Zee etc), and distribution division. Kalbe currently has more than 40 subsidiaries and 13 production facilities with international standards, supported by around 17,000 employees and 1,250 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).