Robust revenue, rising costs

Research evidence excerpt

Robust revenue, rising costs

Nomura Securities Malaysia Sdn Bhd

Kalbe Farma KLBF.JK KLBF IJ 28 July 2026

EQUITY: GENERAL CONSUMER

RatingRobust revenue, rising costs Remains Buy

Target priceLower FY26/27F earnings by 14%/11% due to margin Reduced from IDR IDR 1,700pressure; maintain Buy with a reduced TP of IDR1,700 1,975

Consumer health and nutritional divisions’ revenue expansion Closing27 July 2026price IDR 715

We acknowledge KLBF’s new initiatives—more aggressive marketing, clearer product

positioning, a more streamlined sales team, and healthier inventory days—have gradually Implied upside +137.8%

improved the revenue growth trajectory in the consumer health and nutritional divisions.

We assess the consumer health business can maintain its low-teens% growth in 2026F, Market Cap (USD mn) 1,859.5

attributable to: (1) stronger Promag brand sales (the largest revenue contributor) – thanks ADT (USD mn) 3.5

to strong consumer affirmation of herbal products, Promag inventory days stood at a

healthy level of 32 days in 2Q26 (vs. 90 days in 2024); (2) Extra Joss, the second-largest Relative performance chart

category, also recorded double-digit sales growth, driven by the new premium can product

and powder sachet; and (3) other smaller brands such as Mixagrip and Bejo, which also

continued gaining market share. On the other hand, we estimate the nutritional division to

likely book mid-single-digit% sales growth in 2026F after two years of declining sales.

Management has been able to lower nutritional inventory days gradually from 90 (2024) to

33 (2Q26), which should create more room for growth. Based on our analysis, lifestyle-

related products (i.e., Fitbar, Hydrococo, etc) and liquid milk products contributed double-