Jakarta, April 28, 2023 - PT Kalbe Farma Tbk and Subsidiaries ("Kalbe" or "the Company") today announced that net sales reached Rp 7,869 billion in the first quarter of 2023, growing by 12.2% compared to the first quarter of 2022. Meanwhile, net income reached Rp 856 billion in the first quarter of 2023, growing by 2.5% compared to Rp 835 billion in the same period last year.

Macroeconomic recovery post pandemic has created opportunities for growth. The Company remained vigilant on inflation impact and prolonged supply chain disruption. We continued to implement strategies to maintain its growth and business sustainability. The Company continued to underscore the needs to manage input cost pressure through price increase policies, portfolio management and managing operating cost efficiency. The Company ensures strong financial liquidity to manage the working capital and to fund expansion. The Company will continue its focus on innovation to provide products and services to meet consumers' needs.

The Company continuously works to improve access to healthcare for the community, among others by increasing the contribution of products in the National Health Insurance program, launching various preventive and herbal products, offering nutritional products that are more affordable and expanding health services ecosystem. To expand distribution reach, the Company provides B2B platform - EMOS & MOSTRANS through its distribution & logistic divisions. The Company also combines product portfolio management strategies, manages the effectiveness of sales and marketing activities, promoting digital transformation, and maintains operational cost efficiency. In addition, the Company continues to carefully implement internal and external health protocols and educates the market through various communication channels.

In terms of growth and contribution by Division, Prescription Drugs Division posted sales growth of 27.5% to Rp 1,949 billion from Rp 1,529 billion in the first quarter of 2022, and accounted for 24.8% of the Company total net sales. In the first quarter 2023, Consumer Health Division achieved an increased sales of 9.3% to Rp 1,102 billion compared to the first quarter of 2022 with a contribution of 14.0% to the total net sales of the Company in the first quarter of 2023. Distribution & Logistics Division achieved a net sales increase of 8.5% to Rp 2,810 billion from Rp 2,591 billion in the same period last year and contributed 35.7% to the Company's total net sales. Nutritionals Division recorded net sales at Rp 2,007 billion in the first quarter of 2023, grew by 6.4% from the same period in the previous year's achievement and accounted for 25.5% of Kalbe's total net sales in the first quarter of 2023.

The Company continued to monitor the efficiency of operational activities to maintain the profitability ratios. Operating profit grew by 9.4% to Rp 1,150 billion in the first quarter 2023 with operating profit margin of 14.6%. Profit before tax in the first quarter of 2023 amounted of Rp 1,096 billion with profit before income tax margin reaching 13.9%. Earnings per share reached Rp 18.40 in the first quarter of 2023, grew 3.1% compared to Rp 17.85 in the same period last year.
Earnings per share reached Rp 18.40 in the first quarter of 2023, grew 3.1% compared to Rp 17.85 in the same period last year.

Along with the economic recovery, increasing mobility, and the transition of Covid-19 to endemic, the Company targets 2023 net sales growth of 13%-15% with a projected earnings per share growth of around 13%-15%. Despite facing increasing uncertainty due to the global financial and geopolitical crisis, the Company strives to maintain product availability and minimize the impact of rising raw material prices by implementing pricing and portfolio management strategies. 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%, while taking into account the availability of funds and internal funding needs.

The Company's optimism for growth, encourages the Company to consistently pursue research and development activities to produce innovation of product and services. The Company strives to increase local content through various initiatives to provide products and medical devices. 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 and are able to contribute to the Company's business performance.

On the other hand, the Company builds cooperation with various parties, either in the form of joint-ventures, acquisitions or other forms of business cooperation. Among such collaborations, the Company is conducting collaborative research and clinical trials with third parties for new invention products (novel products) through PT Kalbe Genexine Biologics (KGBio), conducted acquisition of PT Aventis Pharma to strengthen pharma portfolio including vaccines and established Global Starway Synergy Co., Ltd as a joint venture to strengthen supply chain in China.


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 more than 40 subsidiaries and 14 production facilities with international standards, employed around 16,000 employees and have 72 branches of distribution & logistics across Indonesia. Since 1991, Kalbe's shares have been listed on the Indonesia Stock Exchange (IDX: KLBF).

Attachments

Disclaimer

PT Kalbe Farma Tbk published this content on 28 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2023 13:02:26 UTC.