KEY HIGHLIGHTS
- 1H26 net profit doubled to IDR 2,475Bn, +100.2% yoy, a clear beat at 56.3% of FY26 consensus. Revenue rose 28.7% to IDR 35,355Bn and operating profit 77.7% to IDR 3,733Bn, though the comparison is flattered by a 1H25 trough that took only 34.0% of that year’s operating profit.
- 2Q26 operating profit fell 57.3% qoq to IDR 1,117Bn on flat revenue of IDR 17,641Bn. Gross margin dropped 7.9pp qoq to 17.6%, below the 19.6% of 2Q25, as commercial farming swung to a segment loss of IDR 496Bn from a profit of IDR 862Bn in 1Q26.
- Feed and breeding are what kept the quarter profitable. The feed segment result rose 41.1% yoy to IDR 1,077Bn at a steady 9.5% margin and breeding delivered IDR 509Bn against a IDR 13Bn loss, absorbing the reversal in livebird and day-old chick prices.
- 1H26 operating cash flow was negative IDR 2,228Bn against a positive IDR 982Bn a year earlier. Inventories, advances and capex took the profit back, lifting net debt IDR 5,356Bn to IDR 13,668Bn and gearing to 0.64x from 0.42x. Key watch: whether livebird and day-old chick prices recover through 3Q26, and whether the working capital build converts back into cash.
Regards, Aldiracita Research
