Equal · Financial Report

Kalbe Farma

KLBF/FY2021–FY2025/Educational Analysis/IDR/Data source · 2026-06-19

ROE = tax × interest × margin × turnover × leverage

	FY2021	FY2022	FY2023	FY2024	FY2025
Tax burden	0.80x	0.80x	0.78x	0.80x	0.81x
Interest burden	0.99x	0.99x	0.98x	0.99x	0.99x
Operating margindriver	15.3%	14.7%	12.0%	12.6%	13.0%
Asset turnover	1.02x	1.06x	1.13x	1.11x	1.15x
Leverage (equity mult.)	1.21x	1.23x	1.17x	1.20x	1.24x
= Return on Equity (consolidated)	15.0%	15.3%	12.0%	13.2%	14.8%
Return on Invested Capital (ROIC)	15.1%	15.5%	12.2%	13.4%	14.9%

Consolidated (pre-minority-interest) basis; the headline ROE in the ratio grid is owners’ basis.

Liquidity

	FY2021	FY2022	FY2023	FY2024	FY2025
Current Ratio(Current Assets / Current Liabilities)	4.45x	3.77x	4.91x	4.11x	3.47x
Quick Ratio((Current Assets − Inventory) / Current Liabilities)	2.98x	2.16x	2.77x	2.55x	2.16x
Cash Ratio(Cash / Current Liabilities)	1.76x	0.89x	1.00x	1.13x	0.81x
Working Capital(Current Assets − Current Liabilities)	Rp 12 T	Rp 12 T	Rp 13 T	Rp 13 T	Rp 13 T

Leverage & Solvency

	FY2021	FY2022	FY2023	FY2024	FY2025
Debt to Equity (DER)(Total Debt / Total Equity)	0.03x	0.05x	0.03x	0.02x	0.01x
Liabilities to Equity(Total Liabilities / Total Equity)	0.21x	0.23x	0.17x	0.20x	0.24x
Debt to Assets(Total Debt / Total Assets)	0.02x	0.04x	0.02x	0.02x	0.01x
Net Debt(Total Debt − Cash)	-Rp 5.6 T	-Rp 2.8 T	-Rp 2.6 T	-Rp 4.2 T	-Rp 4.0 T
Interest Coverage(EBIT / Interest Expense)	88.62x	103.05x	43.99x	72.82x	129.91x
Equity Multiplier (Assets ÷ Equity)	1.21x	1.23x	1.17x	1.20x	1.24x

Profitability

	FY2021	FY2022	FY2023	FY2024	FY2025
Gross Margin(Gross Profit / Revenue)	42.3%	39.8%	37.9%	39.0%	39.0%
Operating Margin(EBIT / Revenue)	15.3%	14.7%	12.0%	12.6%	13.0%
Net Margin(Net Income / Revenue)	12.1%	11.7%	9.1%	9.9%	10.4%
EBITDA(EBIT + D&A)	Rp 4.6 T	Rp 4.9 T	Rp 4.3 T	Rp 4.8 T	Rp 5.3 T
EBITDA Margin(EBITDA / Revenue)	17.7%	17.0%	14.2%	14.8%	15.1%
Return on Assets (ROA)(Net Income / Total Assets)	12.4%	12.4%	10.2%	11.0%	11.9%
Return on Equity (ROE)(Net Income (Owners) / Equity (Owners))	16.3%	16.6%	12.9%	14.2%	15.7%
Tax Burden (Net ÷ Pretax)	0.80x	0.80x	0.78x	0.80x	0.81x
Interest Burden (Pretax ÷ EBIT)	0.99x	0.99x	0.98x	0.99x	0.99x
Return on Invested Capital (ROIC)	15.1%	15.5%	12.2%	13.4%	14.9%

Operations & Efficiency

Turnover	FY2021	FY2022	FY2023	FY2024	FY2025
Asset Turnover(Revenue / Total Assets)	1.02x	1.06x	1.13x	1.11x	1.15x
Inventory Turnover(COGS / Inventory)	2.94x	2.44x	2.72x	3.06x	3.08x
Receivables Turnover(Revenue / Receivables)	7.65x	6.27x	6.62x	6.71x	6.25x
Payables Turnover(COGS / Payables)	9.09x	8.72x	11.18x	10.52x	8.96x

Conversion Period	FY2021	FY2022	FY2023	FY2024	FY2025
Days Inventory Outstanding (DIO)(365 × Inventory / COGS)	124.3 days	149.6 days	134.1 days	119.2 days	118.4 days
Days Sales Outstanding (DSO)(365 × Receivables / Revenue)	47.7 days	58.2 days	55.1 days	54.4 days	58.4 days
Days Payable Outstanding (DPO)(365 × Payables / COGS)	40.2 days	41.8 days	32.7 days	34.7 days	40.7 days
Cash Conversion Cycle (CCC)(DIO + DSO − DPO)	131.9 days	166.0 days	156.6 days	138.9 days	136.1 days

Cash Flow

	FY2021	FY2022	FY2023	FY2024	FY2025
Free Cash Flow(Operating Cash Flow − Capex)	Rp 2.3 T	Rp 566 M	Rp 2.0 T	Rp 3.9 T	Rp 2.5 T

Valuation

price as-of 2026-07-31fundamentals: FY2025

Price Rp 725 · market cap Rp 33 T

Multiple	KLBF	Peer median	vs median
P/E	8.95x	9.09x	-2%
P/B	1.41x	1.41x	-0%
P/S	0.93x	0.93x	+0%
EV/EBITDA	5.65x	5.35x	+5%
EV/EBIT	6.59x	6.62x	-0%
EV/Sales	0.85x	0.78x	+10%
FCF Yield	7.76%	7.21%	+8%
Dividend Yield	4.96%	6.85%	-28%

EV = mkt cap Rp 33 T + debt Rp 299 M − cash Rp 4.3 T + minority interest Rp 1.4 T = Rp 30 T

What the price implies

At today’s price, the market is paying for 6.9%/yr FCF growth (3.9% at 12.0% to 9.8% at 16.0% discount rates). Delivered over the last 4 years: 2.3% FCF · 7.7% revenue.

Reverse DCF: single-stage FCF, terminal growth 2.5%, discount band 12.0–16.0% (β=1; build cited in Methodology). Not a forecast.

Forward DCF (glass-box)

This model projects the operating cash the whole business generates, discounts it back at the blended cost of capital, and subtracts net debt. What remains is the equity value, stated per share. Every input below comes from the company's own audited record or from cited market data, and you can adjust each one yourself.

Assumption	Value	Basis
Rf (risk-free)	7.26%	Indonesia 10Y government bond, re-verified 31 Jul 2026
ERP (Rm − Rf)	6.69%	Damodaran Indonesia, Jul 2026 (Baa2, CRP 2.46%)
β	0.89 → 0.90	Drugs (Pharmaceutical) (unlevered) relevered at own D/E 0.01
Cost of equity	13.26%	Rf + β × ERP
Cost of debt	7.66%	median interest coverage 88.6x (EBIT ÷ interest, FY2021–FY2025) implies a Aaa/AAA synthetic rating and a 0.40% default spread, over a 7.26% base (Indonesia 10Y 7.26%, already the sovereign rate). Its BOOK rate is 11.8%, which is what past debt actually costs; the gap is legacy or subsidised borrowing, not the rate on new debt. Spread table: A. Damodaran, Ratings, Interest Coverage Ratios and Default Spread, January 2026 data update (large non-financial service firms)
Tax rate	19.9%	median effective rate, FY2021–FY2025 (pretax ≈ EBIT − interest)
WACC	13.19%	99% E × CoE + 1% D × Kd × (1 − t)
Revenue growth (yr 1, fading)	7.7%	delivered 4-yr revenue CAGR 7.7%, fading linearly to terminal
EBIT margin	12.5%	mean EBIT margin, last 3 FYs
D&A / revenue	2.2%	mean D&A/revenue, last 3 FYs
Capex / revenue	2.6%	mean capex/revenue, last 3 FYs, for the explicit years. The terminal year instead FUNDS ITS OWN GROWTH: in stable growth g = reinvestment rate x return on capital, and returns are assumed to converge to the 13.2% cost of capital, so the perpetuity reinvests 18.9% of NOPAT and terminal capex is 3.7% of revenue against depreciation of 2.2%. Both simpler rules are wrong in opposite directions: holding the historical ratio charges a build phase in perpetuity, while setting capex equal to depreciation hands the company 2.5% growth forever for no new capital. Because returns converge to the cost of capital, terminal growth here is value-neutral
ΔNWC / Δrevenue	17.3%	median ΔNWC/Δrevenue across the seeded years (NWC = AR + inventory − AP)
Terminal growth	2.5%	BI inflation-target midpoint (2.5% ± 1%)

Growth path

year 1 → fading to terminal over 5 yrs7.7%

EBIT margin12.5%

WACC13.2%

Terminal growth2.5%

Explicit years5

FCFF drivers

FCFF = NOPAT + D&A − capex − ΔNWC

Each default is the company's own historical average, which describes the phase it happened to be in. Switch a driver to Per-year when that phase is ending: a company mid-build does not spend at its peak rate forever, and one in a capex pause does not stay there. The terminal year keeps its own ratios, so a taper you enter here changes the explicit window and leaves the perpetuity coherent.

Capex

% of revenue2.6%

D&A

% of revenue2.2%

ΔNWC

% of the CHANGE in revenue17.3%

Year	+1	+2	+3	+4	+5	T∞
Growth	7.7%	6.4%	5.1%	3.8%	2.5%	2.5%
Revenue	Rp 38 T	Rp 40 T	Rp 43 T	Rp 44 T	Rp 45 T	Rp 46 T
EBIT	Rp 4.8 T	Rp 5.1 T	Rp 5.3 T	Rp 5.5 T	Rp 5.7 T	Rp 5.8 T
NOPAT	Rp 3.8 T	Rp 4.1 T	Rp 4.3 T	Rp 4.4 T	Rp 4.5 T	Rp 4.6 T
+ D&A	Rp 831 M	Rp 884 M	Rp 929 M	Rp 964 M	Rp 988 M	Rp 1.0 T
− Capex	Rp 981 M	Rp 1.0 T	Rp 1.1 T	Rp 1.1 T	Rp 1.2 T	Rp 1.7 T
− ΔNWC	Rp 469 M	Rp 420 M	Rp 356 M	Rp 279 M	Rp 191 M	Rp 195 M
FCFF	Rp 3.2 T	Rp 3.5 T	Rp 3.7 T	Rp 4.0 T	Rp 4.2 T	Rp 3.8 T
PV	Rp 2.8 T	Rp 2.7 T	Rp 2.6 T	Rp 2.4 T	Rp 2.2 T	Rp 19 T

Check it yourself: revenue × margin = EBIT · NOPAT = EBIT × (1 − tax) · FCFF = NOPAT + D&A − Capex − ΔNWC · PV = FCFF ÷ (1+WACC)^yr · TV = FCFF(T∞) ÷ (WACC − g), discounted from year 5 · equity = EV − net debt − minority · per share = equity ÷ shares outstanding

EV = PV(explicit) Rp 13 T + PV(TV) Rp 19 T = Rp 32 T · TV 60% of EV · − net debt -Rp 4.0 T − minority Rp 1.4 T = equity Rp 34 T ÷ shares outstanding

Model output: Rp 759/share (+5% vs price Rp 725)· exit-multiple check (5.4x): Rp 763

Under these assumptions the model lands close to today's price. The market and these inputs are telling broadly the same story.

Sensitivity (per share, Rp)

g \ WACC	12.2%	13.2%	14.2%
2.0%	804	738	682
2.5%	831	759	700
3.0%	860	783	719

Model output under the stated assumptions. Every input above comes from the company's own audited record or from cited market data, and every one can be adjusted. This is not a price target and not advice.

Educational analysis. Multiples pair today’s price with the latest audited fiscal year (trailing-FY convention); peer figures are the covered peer sample, not the whole market. Never a price target.

Macro backdropfull backdrop + sensitivity map →

BI Rate 5.75%IDR/USD 18,05810Y government bond yield 7.26%Inflation 3.34%(as-of 2026-07-31)

Rupiah weaker(H)GDP/consumption ↑(M)

Income Statement

	FY2021	FY2022	FY2023	FY2024	FY2025
Revenue	Rp 26 T	Rp 29 T	Rp 30 T	Rp 33 T	Rp 35 T
Cost of Goods Sold	Rp 15 T	Rp 17 T	Rp 19 T	Rp 20 T	Rp 22 T
Gross Profit	Rp 11 T	Rp 12 T	Rp 12 T	Rp 13 T	Rp 14 T
Operating Income (EBIT)	Rp 4.0 T	Rp 4.2 T	Rp 3.6 T	Rp 4.1 T	Rp 4.6 T
Interest Expense	Rp 45 M	Rp 41 M	Rp 83 M	Rp 56 M	Rp 35 M
Net Income	Rp 3.2 T	Rp 3.4 T	Rp 2.8 T	Rp 3.2 T	Rp 3.7 T
Net Income Attributable to Owners	Rp 3.2 T	Rp 3.4 T	Rp 2.8 T	Rp 3.2 T	Rp 3.7 T
Depreciation & Amortization	Rp 618 M	Rp 659 M	Rp 665 M	Rp 716 M	Rp 767 M

Balance Sheet

	FY2021	FY2022	FY2023	FY2024	FY2025
Cash & Equivalents	Rp 6.2 T	Rp 3.9 T	Rp 3.2 T	Rp 4.7 T	Rp 4.3 T
Accounts Receivable	Rp 3.4 T	Rp 4.6 T	Rp 4.6 T	Rp 4.9 T	Rp 5.7 T
Inventory	Rp 5.2 T	Rp 7.1 T	Rp 6.9 T	Rp 6.5 T	Rp 7.0 T
Current Assets	Rp 16 T	Rp 17 T	Rp 16 T	Rp 17 T	Rp 19 T
Total Assets	Rp 26 T	Rp 27 T	Rp 27 T	Rp 29 T	Rp 31 T
Accounts Payable	Rp 1.7 T	Rp 2.0 T	Rp 1.7 T	Rp 1.9 T	Rp 2.4 T
Current Liabilities	Rp 3.5 T	Rp 4.4 T	Rp 3.2 T	Rp 4.2 T	Rp 5.3 T
Total Liabilities	Rp 4.4 T	Rp 5.1 T	Rp 3.9 T	Rp 4.8 T	Rp 6.0 T
Total Interest-Bearing Debt	Rp 626 M	Rp 1.2 T	Rp 622 M	Rp 562 M	Rp 299 M
Total Equity	Rp 21 T	Rp 22 T	Rp 23 T	Rp 25 T	Rp 25 T
Equity Attributable to Owners	Rp 20 T	Rp 20 T	Rp 21 T	Rp 23 T	Rp 23 T

Cash Flow Statement

	FY2021	FY2022	FY2023	FY2024	FY2025
Operating Cash Flow	Rp 2.8 T	Rp 1.3 T	Rp 2.9 T	Rp 4.8 T	Rp 3.3 T
Capital Expenditure	Rp 504 M	Rp 705 M	Rp 882 M	Rp 908 M	Rp 726 M

Company Deep Analysis

Reviewed: 2026-06-26

Analyst Verdict

Kalbe Farma is Indonesia’s pharma leader, built on four divisions: prescription drugs, OTC consumer health (Promag, Komix, Mixagrip), nutritionals (Diabetasol, Morinaga) and distribution and logistics (Enseval). It is defensive and net-cash (D/E ~0.01), with solid returns (ROE 13–16%, ROIC ~12–15%). The key vulnerability sits on the cost side: roughly 90% of its active raw materials are imported, so a weaker rupiah squeezes margins (ROE dipped to ~13% in FY23 before recovering to 15.7% in FY25), while government price controls through the BPJS e-catalogue cap what it can charge on prescriptions. It is a defensive healthcare compounder, and the things that move it are the rupiah and raw-material costs on one hand and pricing policy on the other.

Business Model

Indonesia’s largest pharmaceutical company, spanning four divisions: Prescription Pharmaceuticals, Consumer Health (OTC brands; Promag, Komix, Mixagrip, Woods), Nutritionals (Diabetasol, Hydro Coco, Morinaga infant formula) and Distribution & Logistics (Enseval, its own nationwide distribution arm). The integrated model, manufacturing branded drugs/nutrition plus controlling distribution, is its structural edge. Net-cash and defensive.

Operating Model (Business Process)

01Import the active ingredients (the FX cost line)
Roughly 90% of KLBF active pharmaceutical ingredients (APIs) are imported and priced in foreign currency.
EconomicsThis is the single biggest margin swing: a weaker rupiah raises input cost, which is exactly why gross margin fell from 42% to 38% through FY22–23 before recovering.
02Manufacture across four divisions
It turns those inputs into prescription drugs, branded OTC health (Promag, Komix, Mixagrip) and nutritionals (Diabetasol, Morinaga).
EconomicsThe branded OTC and nutrition lines carry the higher margins; the prescription line is high-volume but its price is capped by the BPJS e-catalogue, so the mix, not raw scale, drives profitability.
03Control your own distribution (Enseval)
KLBF owns Enseval, its nationwide distribution arm reaching pharmacies and hospitals directly.
EconomicsOwning distribution captures margin a third-party distributor would otherwise take, and guarantees shelf reach no competitor can easily match: the structural edge behind the wide moat.
04Offset the capped side with the branded side
Where policy caps prescription pricing, KLBF leans on price increases in branded OTC and nutrition to hold the blend.
EconomicsThis is why blended gross margin holds ~39% even though one whole division is price-controlled: the branded portfolio subsidises the regulated one.
05Compound from a net-cash base
Capex is light (~Rp0.5–0.9tn a year on Rp30tn+ revenue), the balance sheet is net cash (D/E to 0.01), and it pays out ~45% of earnings.
EconomicsA distribution-led model needs little new capital to grow, so most of the cash returns to shareholders while a cushion builds: defensive compounding, not capital-hungry growth.

Cost structureImport-cost-led. The dominant cost is imported active ingredients (~90% of APIs), priced in foreign currency, so gross margin (~39%) moves with the rupiah, the structural swing demonstrated in the FY22–23 compression to 38%. Manufacturing and distribution (Enseval) are scale-efficient, and because it owns Enseval, KLBF keeps the distribution margin in-house rather than paying it away.

Cash cycleWorking-capital-heavy but self-funding. KLBF carries meaningful inventory (roughly 20–25% of revenue) and receivables (~15%), so cash conversion swings with the input-cost cycle: in FY22 operating cash flow fell to just 0.38x net income as inventory built during the cost spike, then snapped back above 1.0x by FY24 as it unwound. Net cash throughout, so it funds itself.

Unit economicsPer product, the imported API is the cost and the brand (OTC/nutrition) or the tender (prescription) is the revenue. The margin depends on two things KLBF only half-controls: the rupiah on the cost side and BPJS policy on the price side. Owning Enseval adds a second margin layer, distribution, that a non-integrated rival pays away.

Segments

Consumer Health and Nutritionals (branded, higher-margin) plus Prescription (volume, but price-controlled) and Distribution (Enseval: lower-margin but strategic reach). Gross margin ~39% blends branded strength with the imported-raw-material cost base. The recurring nuance: ~90% of APIs (active pharmaceutical ingredients) are imported, making margins rupiah-sensitive.

Value Chain & Positioning

Imported active ingredients (APIs) → manufacturing → branded marketing (OTC/nutrition) + tendered prescription → Enseval distribution → pharmacies/hospitals. KLBF’s margin pool sits in branded OTC/nutrition and the integrated Enseval distribution; its cost line is dominated by imported raw materials (FX), and prescription pricing is capped by policy.

Competitive Forces (Porter’s 5)

Supplier powerHigh

How much leverage input/funding providers have over pricing.

~90% of active pharmaceutical ingredients are imported, so raw-material suppliers and the rupiah drive the cost base.

Implication → The core margin pressure: a weaker rupiah squeezes gross margin (ROE dipped to ~13% in FY23).

Buyer powerMedium

How much leverage customers have to push prices down.

Government/BPJS sets prescription prices (e-catalogue); OTC consumers are brand-loyal.

Implication → Caps prescription margins, but branded OTC/nutrition retains pricing power.

Threat of new entryLow

How easily new competitors can enter the market.

Manufacturing scale, brands, R&D and the Enseval distribution network are high barriers.

Implication → The integrated franchise is defensible; distribution is hard to replicate.

Threat of substitutesMedium

Risk that alternative products/services replace demand.

Generics and competing brands substitute; herbal/traditional remedies compete in OTC.

Implication → Pressures pricing in generics; brand strength defends OTC/nutrition.

Competitive rivalryMedium

Intensity of competition among existing players.

Competes with other pharma and consumer-health players across all divisions.

Implication → Steady; scale, brands and distribution keep KLBF the leader.

Moat / Competitive Edge

Wide. KLBF’s moat is scale (the largest Indonesian pharma), strong OTC/nutrition brands, R&D and, critically, its own Enseval distribution network reaching pharmacies and hospitals nationwide. This integration plus a net-cash balance sheet makes it defensive. The constraint: heavy reliance on imported APIs exposes margins to the rupiah, and BPJS price controls cap the prescription business.

Key Drivers & Sensitivities

Rupiah / raw-material costs
The dominant margin driver: ~90% of APIs are imported; a weaker rupiah squeezes gross margin (ROE dipped to ~13% in FY23, recovered to 15.7% in FY25).
BPJS / price-control policy
Government e-catalogue pricing and BPJS caps limit prescription margins; OTC/nutrition are freer.
OTC / nutritional volume
Branded consumer-health and nutrition demand (defensive, premiumising) drives the higher-margin mix.
Distribution (Enseval)
The own-distribution arm extends reach and captures channel margin: a structural, hard-to-copy asset.
New products / biosimilars
R&D, new launches and biosimilars/local-API initiatives are the long-term growth and margin-defence levers.

Earnings Quality

High and cash-backed over the full window, with one explainable wobble. Across FY21–25 operating cash flow roughly tracks cumulative net income, but FY22 stands out at just 0.38x, not an earnings problem but an inventory build (inventory rose to ~25% of revenue) as KLBF stocked up through the input-cost spike; it reversed to 1.48x by FY24. Earnings are recurring and operating, with no reliance on one-off gains.

Checked: no material one-offs found in the reviewed window.

Cash conversionOver five years OCF broadly equals net income; the FY22 dip to 0.38x and the FY24 rebound to 1.48x are the two ends of one working-capital cycle around imported-input stocking, not a quality signal.

Capital Allocation

Harvester: returns cash, limited reinvestment

A cash cow that reinvests lightly and returns the rest. Capex runs a modest ~2–3% of revenue, the balance sheet is net cash and getting cleaner (D/E 0.05→0.01), and KLBF pays out ~45% of earnings, so it grows revenue mid-single-digits without needing much capital and hands back the surplus.

DeploymentLight reinvestment (capex ~Rp0.5–0.9tn) into capacity and Enseval, a growing cash cushion, and a steady ~45% dividend. It does not chase acquisitions or leverage.

Returns trendROIC ~12–15% and ROE ~13–17% sit above the cost of capital, but both dipped in FY23 (ROE to ~13%) when the rupiah squeezed margins, then recovered to 15.7% by FY25, so returns are healthy but FX-cyclical.

Linkages

Tied to consumer health spending (defensive), the rupiah (imported APIs), and government health policy (BPJS, price controls, local-production push). Less cyclical than discretionary sectors; a defensive healthcare-consumption play with an FX-cost overlay.

Recent Developments

FY22–25 is a story of margin pressure from the cost side, then recovery. Because roughly 90% of KLBF active ingredients are imported, the weak rupiah of FY22–23 pushed gross margin down from 42% to 38% and ROE from a 16.6% peak to ~13% (FY23), the imported-input model showing its one real weakness. From FY24 margins recovered (gross back to ~39%, ROE to 15.7% by FY25) as input pressure eased and price increases in branded OTC and nutrition caught up. Underneath, the business kept compounding quietly: revenue grew every year (Rp26tn→Rp35tn), the balance sheet moved to essentially net cash (D/E 0.05→0.01), and free cash flow strengthened (to ~Rp3.9tn at the FY24 peak), most of it returned at a ~45% payout. The takeaway: a defensive compounder whose earnings wobble with the rupiah, not with demand.

Regulation

Regulated by BPOM (drug approval, safety, GMP) and the Ministry of Health; BPJS and the government e-catalogue set prescription prices, and a local-production (TKDN) push encourages domestic API/manufacturing. Halal certification applies to consumer products. Listed on the IDX.

ESG & Sustainability

Material issues: product quality/safety, access to medicines (affordability under BPJS), and supply-chain resilience (import dependence). Governance reflects founding-group control with professional management. Manufacturing environmental management and pharmaceutical waste are managed; halal compliance applies to consumer lines.

Red-Flag Protocol

Cost structure / FXwatch
About 90% of active ingredients are imported, so margins are structurally exposed to the rupiah, the FY22–23 gross-margin compression (42%→38%) is the demonstrated cost. A durable, not one-off, sensitivity.
Regulation / pricingwatch
BPJS e-catalogue price controls cap what the prescription division can charge, structurally limiting that segment margin regardless of cost.
Working capitalnone found
Inventory swings with input-cost stocking (to ~25% of revenue in FY22, dragging that year cash conversion to 0.38x); it reversed, so a timing effect to monitor rather than a problem.
Balance sheetnone found
Net cash (D/E 0.01) with strong coverage, no leverage or solvency concern.

Risks

Rupiah weakness raising imported-API costs
BPJS / price-control policy capping prescription margins
Generic competition and pricing pressure
Supply-chain / import-dependence risk
Regulatory (BPOM) and product-quality risk

Outlook & What to Watch

A defensive, net-cash healthcare leader with strong brands and integrated distribution. Near-term margins hinge on the rupiah and raw-material costs; structurally, consumer-health/nutrition demand and local-API initiatives support steady returns. (Interpretation, not a forecast.)

Key KPIs

Gross margin: Gross profit ÷ revenue: ~39%, rupiah-sensitive
ROE: Net income ÷ equity: 13–16%, FX-driven dips
ROIC: Return on invested capital: solid (~12–15%)
Net margin: Net income ÷ revenue: ~10%
FCF: Free cash flow: strengthening, net cash

Sources

Curated narrative (educational interpretation), backed by the linked sources. The figures above are deterministic. Not investment advice.