Kalbe Farma, Owned By The Late Conglomerate Boenjamin Setiawan, Raised Sales Of IDR 7.86 Trillion In The First Quarter Of 2023

JAKARTA - The pharmaceutical company owned by the late conglomerate Boenjamin Setiawan, PT Kalbe Farma Tbk (KLBF) recorded net sales reaching IDR 7.86 trillion in the first quarter of 2023. This figure increased 12.2 percent compared to the same period last year.

Meanwhile, net profit reached IDR 856 billion in the first quarter of 2023, an increase of 2.5 percent compared to IDR 835 billion compared to the first quarter of 2022.

Kalbe's management explained that the recovery of macroeconomic conditions after the pandemic created growth opportunities. The Company remains aware of the impact of inflation and prolonged supply chain disruptions.

By implementing a strategy to maintain growth and sustainability of its business, the company always pays attention to the importance of managing supply chains, managing rising raw material costs with price increases policies, managing product portfolios, and maintaining operational cost efficiency.

"The company also maintains strong financial liquidity to manage working capital and expand. The company continues to focus on innovating products and services in order to meet the needs of the community," the management wrote in an official statement, quoted Wednesday, May 3.

On an ongoing basis, the company seeks to increase access to Health for the community, among others, by increasing product contribution in the National Health Insurance program, launching various preventive and herbal health products, offering more affordable nutritional products and expanding the health care ecosystem. To expand the distribution range, the company presents the B2B, Emos & Mostrans platform through distribution and logistics divisions.

The company also combines product portfolio management strategies, manages the effectiveness of sales and marketing activities, encourages digital transformation, and maintains operational cost efficiency. In addition, the Company continues to apply health protocols carefully for internal and external and conduct education to the market through various communication channels.

In terms of growth and contribution per Division, the Company's Recipe Medicine Division posted an increase in sales by 27.5 percent to Rp1.94 trillion from Rp1.52 trillion in the first quarter of 2022, and contributed 24.8 percent of the company's total net sales.

In the first quarter of 2023, the Health Products Division achieved an increase in sales of 9.3 percent compared to the first quarter of 2022 to Rp1.1 trillion with a contribution of 14.0 percent to the company's total net sales in the first quarter of 2023.

Meanwhile, the Distribution & Logistics Division achieved an 8.5 percent increase in net sales to IDR 2.81 trillion, from IDR 2.59 trillion in the same period last year, and contributed 35.7 percent to the company's total net sales.

The Nutrition Division posted net sales of IDR 2 trillion in the first quarter of 2023, growing by 6.4 percent from the achievement in the same period the previous year and accounting for 25.5% of Kalbe's total net sales in the first quarter of 2023.

The company continues to maintain the efficiency of operational activities to maintain profitability ratios. Operating profit increased 9.4 percent to IDR 1.15 trillion in the first quarter of 2023, with a profit-to-sale ratio of 14.6 percent. Profit before income tax in the first quarter of 2023 was IDR 1.09 trillion with a profit margin before income tax reaching 13.9 percent.

Earnings per share reached IDR 18.40 in the first quarter of 2023, an increase of 3.1 percent compared to IDR 17.85 in the same period the previous year.

With the economic condition starting to recover, increasing community mobility, and the COVID-19 transition towards endemic, the Company targets net sales growth in 2023 to be around 13-15 percent with a projected net profit growth of around 13-15 percent.

Despite facing increased uncertainty due to the global financial and geopolitical crisis, the Company seeks to maintain product availability and minimize the impact of rising raw material prices by implementing price and portfolio management strategies.

The company also maintains a capital expenditure budget of IDR 1 trillion which will be used for the expansion of production and distribution capacity. The dividend distribution ratio is maintained at a ratio of 45-55 percent, taking into account the availability of funds and internal funding needs.