ICBP - Soaring PATMI (56% yoy) on forex loss nosedive

KBVS update
Wednesday, 6 August 2025

ICBP - Soaring PATMI (56% yoy) on forex loss nosedive
(Maintain BUY; TP IDR13,990)

* ICBP's 1H25 results show a mixed performance. While revenue grew 2% yoy, operational profitability was challenged by higher raw material costs, causing a 7% drop in gross profit and a 5% decline in EBIT.

* ⁠Net income, however, soared 56% yoy due to a one-time forex net loss significant dip (made ICBP's 1H25 earnings surpassed both our and the consensus forecasts), as core profit actually fell by 5%.

* ⁠Segment-wise, noodles and snack foods saw top-line growth, while food seasonings and nutrition and special foods delivered strong EBIT growth. Dairy and beverages were under pressure.

* ⁠Profitability margins for GPM and EBIT contracted, but ICBP's strategic focus on innovation and softening of input costs as well as asp adjustment are expected to drive a recovery, in our view.

* ⁠Maintain BUY with a blended TP of IDR 13,990 (20.6x ‘25F P/E), while currently trading at 14.1x ‘24F P/E, slightly below its -2SD of 14.7x ‘25F P/E.



Regards,
Akhmad Nurcahyadi - KBVS Research team