Jakarta, July 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 1,497 billion in the first semester of 2021, grew 7.9% compared to Rp 1,388 billion in the same period of 2020.
Business activities that support the economy are felt to have started to improve in recent months, and the government projects economic growth in first semester of 2021 at 3.1% - 3.3%, compared to experiencing contraction in the first quarter of 2021. 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), more affordable nutrition product 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 Company's net sales amounted of Rp 12,370 billion in the first semester of 2021, grow by 6.6% compared to the first semester of 2020. The increase in sales was supported by: Distribution & Logistics Division achieved a net sales increase of 15.6% from Rp 3,755 billion to Rp 4,339 billion, and contributed 35.1% to the Company's total net sales. Prescription Drugs Division which posted sales growth of 5.4% from Rp 2,565 billion to Rp 2,703 billion, and accounted for 21.9% of the Company total net sales. Consumer Health Division achieved an increase sales of 3.1% to Rp. 2,001 billion with a contribution of 16.2% to the total net sales of the Company. The Nutrition Division's net sales stood at Rp 3,327 billion in the first semester of 2021, experience a decrease in sales by 0.5% from the previous year's achievement and accounted for 26.9% of Kalbe's total net sales in the first semester of 2021.
Operating profit grew 7.3% to Rp 1,840 billion in the first semester of 2021. Operating profit to sales ratio increase to 14.9% from 14.8% for the same period of last year. Profit before tax in the first semester of 2021 amounted of Rp. 1,928 billion grew by 6.6% with profit before income tax margin reaching 15.6%, stable compared to the same period in the previous year.
Net income of the owners of the parent entity reach Rp 1,497 billion in the first semester of 2021, grew 7.9% compared to Rp 1,388 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 the operating expenses.
Seeing the improvement in the economic, the Company revised its full year 2021 net sales target growth to 7%-10% with a projected net profit growth of around 7%-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.
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 has also obtained permission from the Ministry of Health and BPOM to conduct phase 2B/3 clinical trials of the Covid-19 vaccine – GX-19N. This vaccine is the result of collaboration with Genexine from South Korea. Clinical trials have started in early July 2021 and hopefully the product can 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 ABGC (Academician, Business, Government and Community), 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).