Top-line beat drives earnings Quick Note

Research evidence excerpt

Top-line beat drives earnings Quick Note

Nomura Securities Malaysia Sdn Bhd

Indofood CBP Sukses Makmur ICBP.JK ICBP IJ 29 July 2026

EQUITY: FOOD & BEVERAGE

RatingTop-line beat drives earnings Remains Buy

Target price IDR 14,500 RemainsQuick Note

Closing price IDR 6,950 28 July 2026Revenue outperforms

We expect Indofood CBP to record mid-teens revenue growth in 2Q26F, beating market

expectations, on the back of: 1) the strong demand in Pinehill (unlisted, a subsidiary of

ICBP) region post-Ramadhan – Pinehill also gains market share underpinned by Research Analysts

manufacturing proximity and extensive distribution network, supporting the company in Indonesia Research Team

sustaining product availability, while its competitors (mostly imported products) are facing Heng Siong Kong - NSM

difficulty in entering the market amid the Middle East war; 2) demand from the free meal hengsiong.kong@nomura.com

program should boost ICBP’s liquid milk sales; and 3) low base effect given the +603 2027 6894

government’s expenditure cut last year. Note that growth in 1H was mostly driven by

Onshore expert

volume. In 2H26F, we continue to believe Pinehill will be the main growth driver, while the

free meal program would strengthen Indonesia’s consumption, especially toward liquid Sandy Ham (sandy.ham@verdhana.id),

milk products despite the budget cut. We believe that in order to fulfil dairy consumption

Samuel Christian

demand, products for free meal kitchens should be procured from existing manufacturers.

(samuel.christian@verdhana.id),

On top of that, we believe 2H should deliver higher sales due to earlier stocking activities

in 4Q in anticipation of an early 2027 Lebaran season. Jody Wijaya (jody.wijaya@verdhana.id),

Volume over margin strategy and