Kalbe Farma, Owned By Conglomerate Boenjamin Setiawan, Raised Sales Of Rp. 7.01 Trillion And Profit Of Rp. 716 Billion In The First Quarter Of 2022

Illustration. (Photo: Doc. Antara)

JAKARTA - The producer of pharmaceutical products belonging to the conglomerate Boenjamin Setiawan, PT Kalbe Farma Tbk (KLBF) posted net sales of Rp7.01 trillion in the first quarter of 2022. This achievement rose 16.6 percent compared to the same period in 2021.

In Kalbe Farma's financial report, quoted on Wednesday May 11, the net profit attributable to owners of the KLBF parent entity reached IDR 835 billion in the first quarter of 2022. That figure rose 16.5 percent compared to IDR 716 billion in the same period last year.

Management said, in conditions of global macroeconomic uncertainty and increasingly challenging supply chains, KLBF continues to strengthen the supply of raw materials to maintain product availability. The Company also maintains a strong liquidity position to anticipate future working capital needs.

"Innovation continues to be carried out in order to provide products and services that are in line with the needs of the community and support sales growth," wrote KLBF management.

On an ongoing basis, the management said that Kalbe Farna seeks to improve access to health for the community, among others, by increasing the contribution of products to the National Health Insurance program, launching various preventive and herbal health products, offering more affordable nutritional products and expanding digital-based health services.

To get closer to a wider customer base, KLBF provides B2C - Klikdokter (telemedicine) and B2B - EMOS & MOSTRAS platforms through the distribution & logistics division. The Company also combines product portfolio management strategies, manages the effectiveness of sales and marketing activities, transforms the use of digital technology, and controls other operational costs to maintain operating profit levels.

Management added that in 2022, with economic conditions starting to recover and the expectation of a COVID-19 transition to an endemic direction, the company targets net sales growth in 2022 to be 11-15 percent with a projected net profit growth of around 11-15 percent.

Despite facing increasing uncertainty due to the global geopolitical crisis, the company strives to maintain product availability and minimize the impact of rising raw material prices by implementing cost efficiency and price management strategies.

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

KLBF's optimism for growth encourages the company to consistently carry out research and development activities. Through ABGC (Academics, Business, Government and Community) synergies, 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.

"The company also innovates through PT Kalbe Genexine Biologics by conducting research collaborations and clinical trials with third parties for novel products in several countries in Southeast Asia, Australia and the Middle East," concluded the management.