Kalbe Farma Tbk PT : Maintaining Stable Growth and Margin

Jakarta, October 31, 2016 - PT Kalbe Farma Tbk and Subsidiaries ('Kalbe' or 'the Company') today announced its third quarter 2016 results. Net sales grew by 9.5% to reach Rp 14,376 billion from Rp 13,128 billion in the same period in 2015.

'Up to the third quarter of 2016, the Company booked a positive growth compared to the previous year, supported by gradual recovery of Indonesia macroeconomic condition and stable Rupiah exchange rate. All of Kalbe's Divisions show performance recovery,' stated Vidjongtius, Kalbe's Finance Director and Corporate Secretary. 'Until now, our performance is still on track with a positive outlook. Going forward, Indonesia's gradual economic recovery is expected to support our growth.'

The Company booked net sales of Rp 14,376 billion up to the third quarter of 2016, or growing by 9.5% compared to the same period in 2015 of Rp 13,128 billion. Sales growth was mostly driven by stronger volume in general and improving purchasing power in line with low inflation rate.

Gross profit was up by 9.7% to Rp 7,034 billion. The gross margin was stable at 48.9% from 48.8% in the nine month period last year, on the back of Rupiah strengthening this year back to the level recorded in the same period last year. To maintain margin going forward, the Company will continue to combine product mix management and operating efficiency program.

Operating income ratio reached 15.8%, growing by 14.9% compared to the same period last year. The Company will continue to manage its marketing and sales effectiveness and monitor other operating expenses to maintain operating profit growth.

Our net profit increased by 13.6% to reach Rp 1,703 billion from Rp 1,499 billion in of the nine month period of 2015. Net profit growth was mostly supported by revenue and operating income growth, as well as higher interest income.

Taking into account the macroeconomic and competitive landscape, the Company maintains net sales growth target by 8% -10% with the same rate of growth of net profit. The targeted operating profit margin is stable in the range of 14% - 15%. The Company allocates capital expenditure budget of Rp 1.0 - 1.5 trillion, mostly for production and distribution capacity expansion. Our dividend policy remains at the level of around 40% - 50% payout ratio, depending on cash availability and internal fund requirement.

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 (Cefspan, Brainact, Broadced, etc), consumer health division comprising over-the-counter drugs (Promag, Mixagrip, Komix, Woods, Fatigon, etc) as well as ready-to-drink and energy drink products (Hydro Coco, Extra Joss), nutritionals division (ChilKid, Prenagen, Diabetasol, etc), and distribution division. Kalbe currently has more than 20 subsidiaries and 9 production facilities with international standards, supported by around 17,000 employees and 6,000 sales and marketing personnel, spread in 71 branches across Indonesia. Since 1991, Kalbe's shares have been listed on the Indonesia Stock Exchange (IDX: KLBF).