4Q18: Successes of Defensive Strategies
KLBF, amid volatile USDIDR, succeeded to close 2018 by posting a stable growth performance. Revenues and net profits of 4Q18 edged up by 6.0% y-y to IDR5.4 trillion and 4.6% y-y to IDR653 billion. The performance inevitably drove FY18’s revenue higher by 4.4% y-y (vs. FY17 growth of 4.2%). The distribution & logistic segment, climbing higher by 6.8% y-y in FY18 marked its consistency as the biggest contributor to KLBF’s revenue.
Despite the stable growth performance, the mighty storm of rupiah depreciation shed off KLBF’s gross margins by 43.8% in 4Q18. KLBF’s strategies for efficiency, particularly in promotion and market research are capable of cushioning top-line pressures and maintaining bottom line margins of 4Q18. Along with stable USDIDR at the early of 2019, we oversee the defensive strategies are capable of boosting KLBF’s margins in years ahead.
Consistent Top Line Growth
The distribution & logistic and prescription drugs, performance of which lagged from the end of 2017 to the early of 2018 were fundamental to revenues growth of FY18. We oversee that KLBF’s successful strategies for accelerating growth of both segments are likely to keep top-line growth in check in years ahead. We are certain that Indonesian authorities’ determined efforts to assure that in 2019 BPJS program will cover Indonesian population by 100%. The objective is a positive catalyst for the prescription drug segment as public awareness of proper medical services is on the rise.
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