Increment of 20.2% in Sales
KAEF’s sales are projected to surge by 20.2% from IDR6.12 trillion in 2017 to IDR7.36 trillion in 2018. The increment was backed by the sales growth of 24% y-y and 33% y-y posted by the pharma retail division in 1Q18 and 2Q18, respectively. This division contributed 56% to KAEF’s overall sales.
Net Profit, Lowered by Interest Expenses
KAEF’s net profit grew by 29% from IDR66 billion in 2Q17 to IDR85 billion in 2Q18. However, we estimate that its net profit is likely to decline by 9.5% from IDR327 billion in 2017 to IDR296 billion in 2018. Although its EBITDA grows by 26% from IDR623 billion in 2017 to IDR783 billion in 2018, its interest expenses are estimated to edged up 125% from IDR86 billion in 2017 to IDR194 billion in 2018. It is attributable to the decline in net profit margin of 2018.
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