JPFA booked a revenue decrease by 0.6% YoY to IDR27.48 trillion in 6M25. The decrease in revenue was mainly driven by lower sales in the commercial farm and animal feed segments, as the main contributors to JPFA’s revenue with 39% and 26% contributions to revenue in 6M25, respectively.

On a quarterly basis, JPFA’s revenue decreased by 8.3% QoQ to IDR13.15 trillion in 2Q25. This decrease was caused by lower sales in all of JPFA’s business segments, especially in the poultry breeding segment (-13.56% QoQ), animal feed segment (-13.35% QoQ), and commercial farm segment (-5.81% QoQ).

JPFA’s operating expenses increased by 12.26% YoY to IDR2.99 trillion in 6M25. This increase was driven by an increase in selling and marketing expenses by 24.13% YoY to IDR1.24 trillion, and general and administrative expenses increased by 10.65% YoY to IDR1.78 trillion in 6M25. This condition caused JPFA’s operating profit to decrease by 17.8% YoY to IDR2.13 trillion in 6M25.

JPFA’s net profit decreased by 14.3% YoY to IDR1.36 trillion in 6M25. This result is relatively below our FY25F. Despite a decrease in financial expenses along with lower interest expenses on bank debt in 6M25, pressure on operating profit still pressured net profit in 6M25.

We maintain our Buy rating for JPFA with the same projection and fair value as JPFA’s previous company update at IDR2,400 per share, with potential upside of 41.18%. This is based on the recovery of the average price of live birds and DOC, which is hoped to continue, therefore improving revenue in 2H25. In addition, the potential for maintained demand in the medium-long term from the Free Nutritious Meal Program is also a booster for future performance improvement.

By PHINTRACO SEKURITAS | Research
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