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Maintaining Growth in Challenging Market Conditions

Maintaining Growth in Challenging Market Conditions

Press Release No. 28/KFCP-DIR/PR/VII/20

Jakarta, July 30, 2020 – PT Kalbe Farma Tbk and Subsidiaries (“Kalbe” or “the Company”) today announced net sales of Rp 11,605 billion for the first semester of 2020, an increase of 3.8% compared to the same period last year of Rp 11,179 billion. 

Although the impact of Covid-19 on Indonesia's macroeconomics in the second quarter of 2020 is quite challenging, the Company can maintain positive and stable sales and net profit growth," said Bernadus Karmin Winata, Finance Director of Kalbe Farma.

The increase in Sales in the first semester of 2020 was supported by: the Distribution & Logistics Division achieved a net sales increase of 10.1% from Rp 3,410 billion to Rp 3,755 billion, and contributed 32.4% to the Company's total net sales. Consumer Health Division achieved an increase in sales of 6.6% to Rp. 2,072 billion with a contribution of 17.9% to the total net sales of the Company. The Nutrition Division's net sales stood at Rp 3,213 billion in the first semester of 2020, growing 2.2% from the previous year's achievement and accounted for 27.7% of Kalbe's total net sales, while Company's Prescription Drugs Division which posted declined sales growth of 4.2% to Rp 2,565 billion, and accounted for 22.1% of Kalbe's total net sales in the first semester of 2020. 

Gross profit grew by 1.5% to Rp 5,253 billion in the first semester of 2020. Gross profit to sales ratio fell to 45.3% from 46.3% for the same period of last year. This was caused by higher sales contribution from the distribution and logistics business. Profit before tax in the first semester of 2020 amounted to Rp. 1,809 billion grew by 7.2% with profit before income tax margin reaching 15.6%, an increase from 15.1% 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, transforming digital technology innovation, also monitor other operating costs to maintain level of profit before income tax.

Net income of the owners of the parent entity reach Rp 1,388 billion in the first semester of 2020, grew 10.3% compared to Rp 1,258 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, foreign exchange gain and lower tax rate. 

To support the government and the community to be able to fight and pass the pandemic, so that the economy recovers quickly, the Company contributes in providing PCR tests for hospital that referred by government, in clinical trials on herbal Immunomodulator products which are H2 (Health and Happiness) Cordyceps Militaris and Fatigon Promuno, also conduct clinical trials on Covid-19 vaccine in Indonesia, in collaboration with Company from South Korea – Genexine. Kalbe will continue to strive to improve services, produce and provide products that can improve public health.

Seeing the condition of Covid-19 pandemic which might be prolonged, the Company revised its full year 2020 net sales target growth of 4%-6% with a projected net profit growth of around 8%-10%. The Company maintained 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 supplement drink and ready to drink products (Hydro Coco, Extra Joss), nutritionals division (ChilKid, Prenagen, Diabetasol,Zee etc), and distribution division. Kalbe currently has more than 40 subsidiaries and 14 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).

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