ICBP - 1Q25 PATMI of 13% yoy on forex net gains

KBVS Update
Wednesday, 7 May 2025

ICBP: 13% yoy 1Q25 PATMI; inline
(Maintain BUY; TP: IDR13,990)

* Amid the weak top line and lower gross profit (-4.0% yoy), ICBP recorded a double-digit net income growth of 13% yoy, mainly driven by softer opex and a frog leaped operating income by 234% yoy, prompted by net gains on foreign exchange

* Gross profit margins came under pressure (2.02% yoy), while on EBIT margin level it slightly improving (0.84% yoy) and were much stronger on quarterly basis of 3.4% qoq as well as surpassing company expectation range of 20%-22%. Among the segment boards, food seasonings and nutrition noted a better EBIT margin at 2.54% and 0,60%, respectively. Additionally, bottom line margin came in at 1.36% higher.

* We expect ‘25F ICBP’s top line growth at IDR76.78tn or grew by 5.8% yoy (‘25F guidance 7%-9% yoy) on better volume growth and ASP adjustment. On EBIT level, our ‘25F operating income for ICBP likely to arrive at IDR16.7tn, translating into EBIT margin of around 21.8% or in line with ICBP ‘25F expectation at around 22%.

* Maintain BUY. Our blended TP of IDR13,990 implies 20.6x ‘25F P/E, while it is currently trading at 16.5x ‘25F P/E, or slightly below its -1SD of 16.6x ‘25F P/E.

Regards,
Akhmad Nurcahyadi - KBVS Research