KLBF – Anticipating for higher raw material costs on stronger USD

KLBF – Anticipating for higher raw material costs on stronger USD Kalbe Farma (KLBF) is still anticipating for higher raw material' prices due to stronger USD, by tightly monitoring its raw material procurement and product mix' strategy as well as operational efficiency. KLBF has also prepared its foreign exchange reserves. Nevertheless, KLBF will continue to develop its products. Moreover, KLBF has allocated around IDR700 bn – 1 tn for this year' capex, which the company has spent around IDR212 bn of 2024' capex, in 1Q24, for capacity addition and plant maintenance. This year, KLBF still expects to grow its sales and net profit by around, 6-7% yoy and 13-15% yoy, respectively this year. In 1Q24, KLBF' revenue and net profit grew 6.22% yoy and 11.90% yoy, to IDR8.36 tn and IDR957.56 bn, respectively. The 1Q24 results, showed a recovery in demand and positive profit margin improvement. Thus, in order to achieve this year' target, KLBF will continue to expand its business through new product innovations. In developing medical tools, KLBF collaborates with other parties to accelerate the technology transfer process and can support the government's program in increasing the Domestic Content Level (TKDN) component. Some of the medical devices developed are portable x-ray, ultrasound, dialyzer, CT scan and endoscopy. In drug development, KLBF has signed a collaboration agreement with Alliance Pharma Thailand through the Kalbe International for the cardiovascular drugs, general medicine and oncology. (Source : Kontan)