ICBP - Noodles-led resilience drives 1Q26 earnings

KBVS update
Tuesday, 12 May 2026

ICBP - Noodles-led resilience drives 1Q26 earnings
(Maintain BUY; TP IDR10,360)

* ICBP delivered a resilient 1Q26 performance, successfully navigating raw material cost pressures that weighed on margins. Earnings came in line with our and consensus expectations (26.4%/25.4%), primarily supported by three key factors: (1) solid top-line growth driven by the noodles segment, (2) stable sequential margins despite cost escalation, and (3) a significantly lower net foreign exchange loss.

* Noodles remained the core earnings driver, recording the highest net revenue growth (+8.2% YoY) and increasing its contribution to total sales to 71.8% (vs. 71.2% in 1Q25). While margin pressures persisted across several segments, ICBP demonstrated resilience through selective margin expansion in various divisions.

* Our conviction remains intact, supported by strong execution in pricing and product strategy. However, we remain cautious on the risk of elevated input costs, which could further pressure margins.

* Maintain BUY with a blended TP of IDR10,360 (12.4x ‘26F P/E), while the stock currently trades at 8.5x ‘26F P/E, below its -2SD.

Regards,
Akhmad Nurcahyadi - KBVS Research team