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Sustaining Growth in Pandemic Situation

Sustaining Growth in Pandemic Situation

Press Release No. 017/KFCP-DIR/PR/III/21

Jakarta, March 31, 2021 – PT Kalbe Farma Tbk and Subsidiaries (“Kalbe” or “the Company”) today announced net income of the owners of the parent entity reach Rp 2,733 billion in 2020, grew 9.0% compared to Rp 2,507 billion in the same period in the previous year. 

2020 is a year of challenges for all business activities, and for communities around the world. The Covid-19 pandemic changes the lifestyle and shopping also reduces the purchasing power of the Indonesian people, where outpatients avoid hospitals to reduce the risk of exposure to the Corona virus, high public consumption for healthcare products such as supplements and vitamins and also shopping trends through digital or online platforms. The impact of this pandemic has caused Indonesia to experience negative economic growth of 2.1% in 2020.

Kalbe as a healthcare Company in Indonesia continues to promote innovation through products and services as part of its contribution to the health of the Indonesian people. The Company is adapting by launching healthcare products (such as herbal, supplements, vitamins and medicines) and testing also diagnostic services related to the Covid-19 pandemic. The Company also combines product portfolio management strategies, manages the effectiveness of sales and marketing activities, transforms the use of digital technology, and monitors other operating costs to maintain net profit levels. In addition, the Company continues to strictly implement internal and external health protocols and educates the market through various communication channels. 

The increase in sales in 2020 was supported by: Distribution & Logistics Division achieved a net sales increase of 5.1% from Rp 7,376 billion to Rp 7,752 billion, and contributed 33.5% to the Company's total net sales. Consumer Health Division achieved an increase in sales of 4.7% to Rp. 3,632 billion with a contribution of 15.7% to the total net sales of the Company. The Nutrition Division's net sales stood at Rp 6,743 billion in 2020, growing 1.9% from the previous year's achievement and accounted for 29.2% of Kalbe's total net sales, while Company's Prescription Drugs Division which posted declined sales growth of 3.5% to Rp 4,984 billion, and accounted for 21.6% of Kalbe's total net sales in 2020. As total, the Company net sales is Rp 23,113 billion in 2020, an increase of 2.1% compared to the same period last year of Rp 22,623 billion.

Gross profit stable at Rp 10,246 billion in 2020. Gross profit to sales ratio fell to 44.3% from 45.3% for the same period of last year. This was caused by changes in portfolio product mix. Profit before tax in 2020 amounted to Rp. 3,628 billion grew by 6.6% with profit before income tax margin reaching 15.7%, an increase from 15.0% in the same period in the previous year. 

Net income of the owners of the parent entity reach Rp 2,733 billion in 2020, grew 9.0% compared to Rp 2,507 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 and lower tax rate. 

During this pandemic, the Company believes in the importance of prudent and thorough financial management, in order to consistently maintain a strong financial position. At end of 2020, the Company has cash and cash equivalents of Rp. 5,208 billion, up 71.3% in the same period a year earlier. Total Liabilities and Equity increased 11.4% to Rp. 22,564 billion from Rp. 20,265 billion

Seeing the condition of Covid-19 pandemic which will continue until end of year, the Company targets its full year 2021 net sales growth of 5%-6% with a projected net profit growth of around 5%-6%. 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.

The Company's optimism for growth encourages the Company to continue consistently to conduct research and development activities. Through the synergy of ABG (Academics, Business and Government), the Company continues to collaborate to produce products and services that can be utilized by the community (product downstream) and are able to contribute to the Company's business performance. On the other hand, the Company opens cooperation with various parties, either in the form of joint-ventures, acquisitions or other forms of business cooperation.

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, Consumer Health Division comprising over-the-counter drugs,  as well as supplement drink and ready to drink products, Nutritionals Division, and Distribution & Logistics Division. Kalbe currently has 41 subsidiaries and 15 production facilities with international standards, employed around 16,000 employees and have 76 branches of distribution & logistics across Indonesia.  Since 1991, Kalbe’s shares have been listed on the Indonesia Stock Exchange (IDX: KLBF).


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