Company Update / Consumer Staples / IJ / Click here for full PDF version
Author(s): Andrianto Saputra ;Nicholas Bryan
- 9M25 net profit of Rp819bn (+5.2% yoy) was in-line with our/consensus estimates at 65/69% (vs. 5yr avg of 67%). 9M25 sales was also in-line.
- 3Q25 earnings grew +28.6% yoy, supported by 3Q25 sales growth of +23.3% yoy.
- Maintain our HOLD call with unchanged TP of Rp625/sh.
9M25 net profit was in-line with our/consensus estimate
booked 9M25 net profit of Rp819bn (+5.2% yoy), in line with our and consensus estimates (65%/69% vs. 5Y-mean: 67%). 9M25 revenue of Rp2.7tr (+3.9% yoy) was in-line with our/consensus estimates at 65/69% (vs. 5Y-mean: 68%). 9M25 GPM stable at 56.7% (+5bps yoy), while opex to sales increased to 20.2% (+48bps yoy), resulting in EBIT margin of 36.5% (-43bps yoy). Overall, 9M25 sales growth of +3.9% yoy was slightly below the company's FY25F guidance of >5% yoy, while 9M25 net profit growth of +5.2% yoy remained in line with the guidance of >5% yoy.
3Q25 sales growth was driven by herbal and F&B segment
3Q25 revenue increased to Rp900bn (+23.3% yoy), driven by F&B and herbal segments, which grew +27.3% yoy and +22.0% yoy, respectively, while Pharma grew +5.5% yoy. We note that overall revenue growth of +23.3% yoy was attributed by third-party distributors with sales growth of +95.6% yoy (vs. related-party's -34.1% yoy), indicating recovery in both GT and MT channels.
3Q25 GPM improvement fully offset by opex spike
3Q25 GPM improved to 56.2% (+360bps yoy) amid F&B GPM improvement of +774bps yoy and product mix changes, as herbal carries the highest margin (Fig. 1). Opex-to-sales rose to 26.2% (+336bps yoy) amid higher A&P to sales ratio of +319bps yoy. Consequently, EBIT margin stood at 29.9% (+24bps yoy). In sum, 3Q25 net profit increased to Rp218bn (+28.6% yoy) with NPM of 24.2% (+99bps yoy).
Maintain our HOLD call with unchanged TP of Rp625/sh
In sum, we maintain our HOLD call with unchanged TP of Rp625/sh, based on 15.0x FY25F PE (-1.s.d from its 5Y-mean). Key risk: soft purchasing power.
Sumber : IPS