Indofood CBP: First Take: 2Q26 results - solid topline growth and margin deterioration better than expected

Research evidence excerpt

Indofood CBP: First Take: 2Q26 results - solid topline growth and margin deterioration better than expected

J P M O R G A N Asia Pacific Equity Research

02 August 2026

Indofood CBP Overweight

ICBP.JK, ICBP IJ

First Take: 2Q26 results - solid topline growth and Price (31 Jul 26):Rp6,975

margin deterioration better than expected Price Target (Dec-27):Rp7,900

Our First Take: ICBP delivered a soft beat in its 2Q26 results. We estimate core

ex-FX NPATMI reached IDR2.37tn, up 3% y/y but down 19% q/q due to

seasonality. Core 1H26 profit stood at IDR5.3tn, flat y/y. Headline profits were

weak due to FX losses with regards to ICBP’s USD bond holdings, but headline

figures account for 53% of JPM FY26E. We believe the result itself is quite

impressive on two counts. First, ICBP delivered 16% y/y topline growth in 2Q26,

bringing 1H26 topline growth to 11% y/y. Second, the quantum of margin decline ASEAN Metals, Indo Auto &

in 2Q26 was better than our expectations. Noodle EBIT margin stood at 21.7% in Consumer Research

2Q26, down 154bps y/y and 214bps q/q. This brings 1H26 noodle EBIT margin to Benny Kurniawan, CFA AC

22.9% (-180bps y/y) which is better than our expectations of 22% for FY26. (62-21) 5291 8024

Topline growth was led by Pinehill, delivering 30% y/y growth in 2Q26. Indonesia benny.kurniawan@jpmorgan.com

PT J.P. Morgan Sekuritas Indonesia

business remained resilient with 9% y/y topline growth, supported by dairy (27%

y/y) likely a beneficiary of gov’t programs. Overall, we believe this set of results Jeanette Yutan

(63-2) 8878-1188

is better than our expectations and we expect the market to react positively to the jeanette.g.yutan@jpmorgan.com

results. ICBP has not raised noodle prices this year in the domestic market but has J.P. Morgan Securities Philippines, Inc.