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Recovery Trend in the Middle of Pandemic

Recovery Trend in the Middle of Pandemic

Press Release No. 023/KFCP-DIR/PR/IV/21

Jakarta, April 30, 2021 – PT Kalbe Farma Tbk and Subsidiaries (“Kalbe” or “the Company”) today announced net income of the owners of the parent entity reach Rp 716 billion in the first quarter of 2021, grew 7.1% compared to Rp 669 billion in the same period of 2020. 

Business activities that support the economy are felt to have started to improve in recent months, which can be seen from manufacturing PMI data, retail sales, increasing public consumption and the start of increase in the rate of patient visits to the hospital. In the first quarter of 2021, economic growth is still predicted to contract between minus 1% to minus 0.1%. To maintain sales growth, the Company strives to innovate by providing more affordable services and products that are needed by 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 the first quarter of 2021 was supported by: Distribution & Logistics Division achieved a net sales increase of 11.7% from Rp 1,800 billion to Rp 2,009 billion, and contributed 33.4% to the Company's total net sales. Consumer Health Division achieved an increase in sales of 2.7% to Rp. 1,023 billion with a contribution of 17.0% to the total net sales of the Company. The Nutrition Division's net sales stood at Rp 1,586 billion in the first quarter of 2021, experience a decrease in sales by 1.0% from the previous year's achievement and accounted for 26.4% of Kalbe's total net sales, while Company's Prescription Drugs Division which posted declined sales growth of 0.1% to Rp 1,396 billion, and accounted for 23.2% of Kalbe's total net sales in the first quarter of 2021. In total, the Company's net sales amounted of Rp 6,015 billion in the first quarter of 2021, growing by 3.8% compared to the growth of 8.0% in the first quarter of 2020. The impact of the Covid-19 pandemic began to affect the Company's sales since April of 2020.

Gross profit grew 1.1% at Rp 2,647 billion in the first quarter of 2021. Gross profit to sales ratio fell to 44.0% from 45.2% for the same period of last year. This was caused by changes in portfolio product mix. Profit before tax in the first quarter of 2021 amounted to Rp. 926 billion grew by 4.3% with profit before income tax margin reaching 15.4%, an increase from 15.3% in the same period in the previous year. 

Net income of the owners of the parent entity reach Rp 716 billion in the first quarter of  2021, grew 7.1% compared to Rp 669 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. In the first quarter of 2021, the Company’s current assets are Rp. 14,091 billion, up 7.8% compared to the end of 2020. Total Liabilities and Equity increased 6.1% to Rp. 23,931 billion from Rp. 22,564 billion

Seeing the condition of Covid-19 pandemic which probably 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 also innovates through PT Kalbe Genexine Biologics by conducting collaborative research and clinical trials with third parties for Novel products in several countries in Southeast Asia, Australia and the Middle East. In addition, the Company will also continue to coordinate with the Ministry of Health and BPOM to conduct clinical trials of the Covid-19 vaccine. It is planned that clinical trials will be carried out in the second quarter of 2021 and will be marketed in the fourth quarter of this year.

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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