Kalbe Farma’s 2012 Profit Rises 17%

By webadmin on 12:08 pm Feb 05, 2013
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Francezka Nangoy

Kalbe Farma, Indonesia’s largest listed pharmaceutical company, posted a 17 percent increase in unaudited net income in 2012 as high demand and new products boosted sales.

Vidjongtius, the finance director and corporate secretary of Kalbe, said on Monday that income rose to Rp 1.73 trillion ($178 million) last year, from Rp 1.48 trillion in 2011. Revenue rose 25 percent to Rp 13.63 trillion in 2012.

Kalbe’s prescription pharmaceutical division rose 18 percent in 2012 and contributed 24 percent of the company’s total revenue. Its nutrition division, which sells milk products, rose 25 percent and contributed 22 percent of its sales.

Its consumer health division grew 17 percent and accounted for 16 percent of the firm’s total revenue, and Kalbe’s distribution and logistics division increased by 34 percent to account for 38 percent of total sales.

Vidjongtius noted that the distribution division’s growth was a result of new products being sold by Abbott. That unit sells products created by firms such as L’Oreal, Nivea and Mead Johnson.

“The result is very positive,” the finance director said. “It is a reflection of our … financial performance.”

He attributed Kalbe’s impressive growth to aggressive marketing schemes, expansions in its distribution channels and the 15 new products added in 2012, including a bottled drink called Original Love Juice, which was launched after the company acquired Hale International in mid-2012.

The company aims to increase its earning per share by 15 percent to 18 percent, and sales revenue is also projected to grow by 15 percent to 18 percent to about Rp 16 trillion.

“To achieve that, we are increasing our capital expenditure,” Vidjongtius said.

Kalbe has budgeted Rp 1 trillion to Rp 1.5 trillion in capex to increase production capacity and expand its distribution network.

The capital spending will be financed by the company’s own money, and it has about Rp 2.3 trillion in cash flow, according to Vidjongtius.

Thirty percent of the capital expenditure will be used to expand the production capacity for its prescription pharmaceuticals, while 20 percent will be used to escalate manufacturing for over-the-counter drugs and beverages. An additional 20 percent will be used to boost its milk production, while 30 percent will be utilized to expand its distribution channels.

“The 66 [distribution] branches we have now are not nearly enough. We need to expand to penetrate more [areas],” he said.

The company may launch new original products this year or acquire more commodities to sell.