KLBF - Indicative FY23 results

KLBF - Indicative FY23 results Kalbe Farma’ (KLBF) revenue reached IDR7.89 tn (+1.8% yoy/+6.9% qoq) in 4Q23, due to higher sales amidst the unpredictable weather' changes and the rise of new covid cases in 4Q23. Thus, KLBF' FY23 revenue rose by 5.2% yoy to IDR30.5 tn and came in-line with ours (99.1%) and consensus’ (99.8%). KLBF’ distribution & logistics segment remained as the biggest revenue contributor with 40% revenue contribution. Followed by Nutritional segment with 26% revenue contribution, pharmaceutical segment with 23% revenue contribution and consumer health with 11% revenue contribution. Note that, 3 out of 4 KLBF’ business segment experienced sales growth yoy in 4Q23 and FY23. Only its consumer health’ sales that went down yoy in 4Q23 and FY23. KLBF' 4Q23 net profit reached IDR702 bn (-21.7% yoy/+31.0% qoq). As a result, KLBF' FY23 net profit declined by 18.2% yoy, mainly due to higher cost pressures such as lower than expected sales yoy (due to a high base in 2022), higher cost inputs and increased opex, yoy. KLBF’ gross margin contracted by 20bps qoq and 159bps yoy due to high raw material prices. Although on qoq basis KLBF had a softened pressure from its opex, KLBF’ operating margin still contracted yoy. All in all, KLBF’ margins contracted across the board in 2023. (Source: Company, KBVS)