Pt Kalbe Farma Tbk · IDX:KLBF
Pt Kalbe Farma Tbk — Q1 2024 Earnings Presentation
45 slides from Pt Kalbe Farma Tbk's earnings presentation, May 1, 2024
Slide 1: Company Update 1Q24 Unaudited Results
Acceleration towards Health Resiliency Company Update 1Q24 Unaudited Results PT Kalbe Farma Tbk 1st May 2024
Slide 2: Forward-Looking Statement
Forward-Looking Statement This presentation has been prepared for informational purposes only by PT Kalbe Farma Tbk. (“Kalbe” or the “Company”). This presentation has been prepared solely for use in connection with the release of 31 March 2024 unaudited results of the Company. The information contai
Slide 3: Table of Content
Table of Content Key Updates 4 Key Business Strategies 8 Financial Overview 21 Appendix 28
Slide 4: Key Updates
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Slide 5: Key Takeaways
Key Takeaways Solid Foundation for Future Growth 1Q24 Key Updates Improving Margin Trend Net 1Q24 • Positive organic top-line growth in all business 6.3% Sales 12.5% EPS lines in the local market (Gr 8.2%) Improved growth growth • Sustained gross margin improvement trend Gross Profit Margin 40.9% 40
Slide 6: Key Takeaways: Sustained Top-line Growth and Resilient Margins Over a Decade
Key Takeaways Sustained Top-line Growth and Resilient Margins Over a Decade 14,567 15,227 15,731 16,367 15,416 11,634 48.8% 48.0% 49.0% 48.6% 46.7% Gross 45.3% 44.3% 43.0% Profit Margin 40.5% 38.8% 44,000 Operating Profit Margin 15.9% 15.8% 15.9% 15.4% 15.3% 39,000 14.8% 15.2% 14.6% 14.6% 12.1% Net
Slide 7: 2024 Key Priorities
2024 Key Priorities Broad-based Growth with Emphasis on Higher Growth Categories Prescription Medical International Consumer Health Distribution Pharmaceuticals Devices Market & Nutritionals & Logistics Innovative Biologics products, Build local manufacturing Bring more products to Expand into preve
Slide 8: Key Business Strategies
Key Business Strategies
Slide 9: Corporate Overview
Corporate Overview More than Half a Century of Providing Wide-Range Healthcare Solutions Market Capitalization The largest publicly-listed pharmaceuticals company in Southeast Asia IDR 69.1 tn ($4.4 bn) * Onwards 1966 1991 free float Established, headquartered The most integrated * Listed in the Ind
Slide 10: Positive Organic Net Sales Growth Post-Pandemic
Positive Organic Net Sales Growth Post-Pandemic Prescription Pharmaceuticals Net Sales IDR bn (unaudited) 2,196 + 4.0% Kalbe 13% 2,112 Net Sales Growth Licensed Unbranded (yoy) 25% Generics a 28% 9% Market Share b Contribution 6% others 13% c 4% 61% d e 4% Branded 3% Mar 23 Mar 24 Generics 47% Highl
Slide 11: Accelerating Strategic Collaborations, Supporting the Government Program, and Compliance
Accelerating Strategic Collaborations, Supporting the Government Program, and Compliance to Product Quality Standard Prescription Pharmaceuticals Oncology Providing quality products for all categories • Complete product range in all segments covering licensed, branded and unbranded generics Biologic
Slide 12: Innovative Biologics Products
Innovative Biologics Products Prescription Pharmaceuticals: Specialty Category Approved Novel Biologics High growth Zerpidio (HLX10 – Serplulimab) categories Approval for ES-SCLC indication in December 2023 Oncology, Biologics, Serplulimab Unbranded Generics (Zerpidio 100 mg) Growth 14% – 16% Signin
Slide 13: Market Recovery post Covid Normalization
Market Recovery post Covid Normalization Consumer Health Net Sales IDR bn (unaudited) + 0.9% Kalbe 1,247 10% a 3% 1,236 Net Sales Growth Health (yoy) Supplement b 3% 27% c 2% d 2% e 1% Contribution Market Share 10% OTC 73% others 80% Mar 23 Mar 24 Highlights Market Share • Local sales growth of 6.8
Slide 14: Expanding into Preventive, Wellness, and Sports Category
Expanding into Preventive, Wellness, and Sports Category Consumer Health Driving product innovation New product launches in potential categories Strong Market Share and Customer Loyalty Children Health Antacids Anti Diarrhea Cough Remedies Cold Remedies Multivitamin Supplement 72% 46% 50% 39% 40% 48
Slide 15: Maintaining Top-line Growth in the Challenging Market
Maintaining Top-line Growth in the Challenging Market Nutritionals Net Sales IDR bn (unaudited) f others Kalbe Specialty e 4% 3% 2,106 2,146 + 1.9% 15% d 7% 15% Net Sales Growth 4% (yoy) Contribution c Market Share Adults 15% 24% Kids 15% a 61% 28% b Mar 23 Mar 24 24% Highlights Market Share • Loca
Slide 16: Expanding to Affordable and Specialty Segments
Expanding to Affordable and Specialty Segments Nutritionals Grow above the market New product launches Extensive Portfolio to Serve All Ages and Segments Expecting Mothers Lactating Mothers Kids Teens Adults Senior Clinical Growing above the market new 0.6% 1.9% new Market Kalbe Nielsen 1Q24 Q1 2024
Slide 17: Positive Acceptance in Export Countries
Positive Acceptance in Export Countries International Business Pharmaceuticals Highlights Temporary weakness driven by: • High base impact from covid related products in early 2023 Consumer Health • Country specific issues such as political instability, restriction of import license and weaker consu
Slide 18: The Largest Distribution Network in Healthcare, Supported by Digital Expansion
The Largest Distribution Network in Healthcare, Supported by Digital Expansion Distribution & Logistics Managed by PT Enseval Putera Megatrading Tbk (EPMT.JK), a listed subsidiary company (92.47% owned) Net Sales IDR bn (unaudited) Raw 14.9% Medical Devices Materials Trading Highlights 2,774 5% 2,4
Slide 19: New Potential Principals
New Potential Principals Distribution & Logistics Expand to Cold-Chain Distribution Business The Most Extensive Distribution Network Established JV Mitra Ananda Megadistrindo +200K Outlets 71 Branches 3 Regional Distribution Centre (RDC) Major Third-Party Principals by Category Prescription Pharmace
Slide 20: Building Local Manufacturing Capability
Building Local Manufacturing Capability Distribution & Logistics: Medical Devices Accelerate technology transfer Established Surgical Suture Facility Local content requirements for JKN Program Certification Moving Towards Local Manufacturing/Assembly Indigen for TB Kits Culture Media Surgical Suture
Slide 21: Financial Overview
Financial Overview
Slide 22: Consolidated Operational Performance
Consolidated Operational Performance Maintaining Positive Growth in a Challenging Market Net Sales 6.3% In IDR bn (unaudited) 8,363 7,869 4.0% 0.9% 1.9% 14.9% 2,774 2,415 2,112 2,196 2,106 2,146 1,236 1,247 Prescription Consumer Health Nutritionals Distribution & Logistics Total Consolidated Pharmac
Slide 23: Consolidated Operational Performance: Sustained Margin Improvement Trend
Consolidated Operational Performance Sustained Margin Improvement Trend Gross Profit Operating Expenses to Net Sales Net Income 3.2% 11.9% 26.3% 25.1% 40.4% 40.9% 10.9% 11.4% 39.7% 1.1% 1.1% 4.3% 4.3% R&D Expenses G&A Expenses Selling Expenses 3,321 20.9% 19.8% 958 3,220 856 Mar 23 Mar 24 Mar 23 Mar
Slide 24: Working Capital Management
Working Capital Management Securing Product Quality and Availability by Managing Inventory 162 153 Managing Net Operating Cycle 138 • Inventory level has gradually moderated on 129 147 120 track to normalization 131 • Consistently managing supply chain challenges and 122 117 ensure product availabil
Slide 25: Capital Allocation
Capital Allocation Healthy Cash Balance to Support Operation and Business Expansion Total Debt & Gearing Ratio Cash & Cash Equivalent 1,200 5.1% 7.0% 7.0% 6,216 5.8% 6.0% 5,590 1,000 6.0% 5,208 5.0% 800 5.0% 4,050 3,950 4,080 2.7% 4.0% 3,420 2.6% 2.5% 3,232 600 1,116 4.0% 2,833 2,656 1,067 3.0% 400
Slide 26: Financial Strategies 2024
Financial Strategies 2024 Improving Financial Results Sustaining top line growth through organic and inorganic opportunities Driving margin improvement Improving efficiency in production process, marketing effectiveness and leveraging digitalization Improving Working Capital by DOI gradual reduction
Slide 27: Outlook 2024
Outlook 2024 Focusing on Top and Bottom Line Improvement Growing above the market & Consistently optimizing commercializing new Improving profitability shareholders' return innovative products YoY Sales Growth EPS Growth Dividend Payout 6 to 7% 13% to 15% Ratio 45 to 55% 1Q24 : 6.3% 1Q24 : 12.5% Ass
Slide 28: Appendix 1
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Slide 29: Market Overview
Market Overview Relatively Stable Macroeconomy with Changes in Consumer Spending Post Covid Indonesia Macroeconomics • Stable and positive key macroeconomic indicators due to higher mobility post Covid • Managing risks of high inflation, decreasing purchasing power, customers spending allocation tre
Slide 30: Healthcare Industry Overview
Healthcare Industry Overview Growing National Health Insurance Coverage and Increasing Health Budget Population In million National Health Insurance (JKN) Coverage 300 61.0% 66.1% 71.6% 78.5% 83.9% 82.3% 86.1% 90.7% 95.9% 120% 250 100% 200 80% 150 273.9 274.2 278.7 * 60% 257.2 260.0 262.4 265.2 267.
Slide 31: Recent Pharma Regulations
Recent Pharma Regulations Ensuring Compliance and Support to Government Strategics Programs Law No. 17/2023 • Improving doctor availability, local content requirement, distribution of free-sales drugs Government Regulation No. 46/2023 • Ease of importing raw materials Decree of MoH No. HK 01.07/Menk
Slide 32: Access to Healthcare for a Better Life
Access to Healthcare for a Better Life Gradual Improvement of ESG Practices Based on International Standard Environment Energy efficiency and CO2 emission reduction Gradually moving towards energy efficiency and CO2 emission reduction through renewable energy by E installing solar panels in our new
Slide 33: Sustainability Activities
Sustainability Activities Improving Access to Healthcare and Implementing Responsible Business Practices Ristek/BRIN Kalbe Science Award (RKSA) 2021-2023 RKSA is the collaboration between Ristek/BRIN (2021) and KALBE in strengthening triple helix collaboration between academics, business and governm
Slide 34: Appendix 2
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Slide 35: Financial Statement
Financial Statement CONSOLIDATED STATEMENT Dec 23 Mar 24 Change ytd OF FINANCIAL POSITION (Audited) (Unaudited) ASSETS CURRENT ASSETS Cash and Cash Equivalents 3,232,420,596,769 4,080,251,343,199 26.2% Trade Receivables 4,651,970,696,489 5,382,912,542,577 15.7% Other Receivables 168,170,214,069 291,
Slide 36: Financial Statement
Financial Statement CONSOLIDATED STATEMENT Dec 23 Mar 24 Change ytd OF FINANCIAL POSITION (Audited) (Unaudited) ASSETS LIABILITIES CURRENT ASSETS CURRENT LIABILITIES Cash and Cash Equivalents 3,232,420,596,769 4,080,251,343,199 26.2% Short-term Bank Loans 120,800,000,000 126,800,000,000 5.0% Trade R
Slide 37: Financial Statement
Financial Statement CONSOLIDATED STATEMENT Dec 23 Mar 24 Change ytd OF FINANCIAL POSITION (Audited) (Unaudited) ASSETS EQUITY CURRENT ASSETS Capital Stock - Issued and Fully Paid 468,751,221,100 468,751,221,100 0.0% Cash and Cash Equivalents 3,232,420,596,769 4,080,251,343,199 26.2% Additional Paid-
Slide 38: Financial Statement
Financial Statement CONSOLIDATED STATEMENT OF PROFIT OR LOSS Mar 23 Mar 24 Change yoy AND OTHER COMPREHENSIVE INCOME (Unaudited) (Unaudited) NET SALES NET SALES 7,869,160,883,079 7,869,160,883,079 8,363,028,651,272 8,363,028,651,272 6.3% 6.3% COST OF COST OF GOODS GOODS SOLD SOLD (4,649,418,467,778)
Slide 39: Financial Statement
Financial Statement CONSOLIDATED STATEMENT OF PROFIT OR LOSS Mar 23 Mar 24 Change yoy AND OTHER COMPREHENSIVE INCOME (Unaudited) (Unaudited) NET SALES 7,869,160,883,079 8,363,028,651,272 6.3% INCOME COST OF BEFORE INCOME TAX EXPENSE GOODS SOLD 1,095,962,219,727 (4,649,418,467,778) 1,267,573,944,851
Slide 40: Financial Statement
Financial Statement CONSOLIDATED STATEMENT OF PROFIT OR LOSS Mar 23 Mar 24 Change yoy AND OTHER COMPREHENSIVE INCOME (Unaudited) (Unaudited) NET SALES Income (Loss) for the Period Attributable to: 7,869,160,883,079 8,363,028,651,272 6.3% COST OF GOODS Owners SOLD Company of the Parent (4,649,418,467
Slide 41: Financial Statement
Financial Statement Mar 23 Mar 24 CONSOLIDATED STATEMENT OF CASH FLOWS Change yoy (Unaudited) (Unaudited) CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers 8,114,212,599,722 8,668,453,458,981 6.8% Cash payments to suppliers and employees (5,857,456,890,936) (5,434,323,587,063) -7.2%
Slide 42: Financial Statement
Financial Statement Mar 23 Mar 24 CONSOLIDATED STATEMENT OF CASH FLOWS Change yoy (Unaudited) (Unaudited) CASH FLOWS FROM INVESTING ACTIVITIES Interest income received 17,928,097,831 29,443,717,098 64.2% Withdrawal of other current financial assets - 15,000,000,000 Proceeds from sale of fixed assets
Slide 43: Financial Statement
Financial Statement Mar 23 Mar 24 CONSOLIDATED STATEMENT OF CASH FLOWS Change yoy (Unaudited) (Unaudited) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from bonds payables - 126,368,000,000 Proceeds from short-term bank loans 55,400,000,000 6,800,000,000 -87.7% Payments of finance finance payables -
Slide 44: Financial Statement
Financial Statement Mar 23 Mar 24 CONSOLIDATED STATEMENT OF CASH FLOWS Change yoy (Unaudited) (Unaudited) NET INCREASE (DECREASE) IN CASH (391,332,246,997) 961,555,443,364 -345.7% AND CASH EQUIVALENTS Net Effect of Changes in Foreign Exchange Rates of Foreign Currency Denominated Cash and Cash Equiv
Slide 45: Thank You
THANK YOU For further information : PT Kalbe Farma Tbk | Jalan Let. Jend. Suprapto Kav. 4 | Jakarta 10510, Indonesia Tel. : 62-21-42873888 | Fax. : 62-21-42873678 Email : syeren.amanda@kalbecorp.com | investor.relations@kalbecorp.com