KLBF - 9M25 results came in-line on solid 3Q25 sales growth
KBVS Update
Friday, 31 October 2025
KLBF - 9M25 came in-line on solid 3Q25 sales growth
(Maintain BUY, TP of IDR1,740)
Kalbe Farma (KLBF) earnings reached IDR656 bn (+14.5% yoy/-26.9% qoq) in 3Q25 due to higher sales amid unpredictable weather, despite higher costs qoq. As a result, KLBF’ 9M25 earnings grew 10.6% yoy to IDR2.63 tn, which still came in-line with ours’ (73.4%) and cons’ (74.1%) expectation.
KLBF’ revenue grew 12.6% yoy/8.2% qoq to IDR8.91 tn in 3Q25 due to higher ASP with more marketing and promotional activities qoq amid unpredictable weather, despite weaker consumer purchasing power. As a result, KLBF’ revenue reached IDR25.99 tn (+7.2% yoy) in 9M25, which came in-line with ours’ (72.1%) and cons’ (74.3%) expectation.
KLBF’ gross, EBIT dan net margin expanded yoy, but contracted qoq, in 3Q25. The qoq contraction in gross margin due to higher raw material prices, along with its pharma strong sales growty in 3Q25. While, EBIT margin qoq contraction was due to more marketing and promotional activities qoq in 3Q25. All in all, KLBF’ gross, EBIT dan net margin still expanded by 130bps yoy, 30bps yoy and 30bps yoy, respectively in 9M25.
We view that the economic conditions and purchasing power will improve in 4Q25F amid ongoingunpredictableweather. Thus, we maintain our ‘25F and expect KLBF' revenue and earnings could grow by 10.4% yoy and 10.7% yoy, respectively in FY25F with a 10bps yoy net margin expansion as our '25F remain on-track with the company’ 9M25 performance, despite changes in guidance (revenue & earnings growth; 6-8% yoy).
We also expect KLBF to grow its revenue and earnings by 10.9% yoy and 12.9% yoy, respectively in FY26F driven by higher ASP with better sales, an improved products mix and better cost management as the economic conditions may improve further next year.
Maintain BUY on KLBF with TP of IDR 1,740/share (+32.3% upside from yesterday closing price) at 20.2x '26F P/E, as we rollout our valuation to ‘26F. Currently, KLBF is trading at 15.2x ‘26F P/E or at -1.5stdev of its 5 years’ mean P/E.
Best regards,
Andre Suntono – KBVS Research Team