INDF booked revenue growth of 4.4% YoY to IDR59.84 trillion in 6M25. This growth was driven by increased sales in almost all business segments, except for the Bogasari segment, which decreased by 2.4% YoY to IDR15.04 trillion in 6M25. The agribusiness segment experienced the highest sales increase of 33.44% YoY to IDR9.36 trillion in 6M25, aligned with the rise in average Crude Palm Oil (CPO) prices, particularly during the January-March 2025 period.

INDF’s operating expenses increased by 1.11% YoY to IDR 7.94 trillion in 6M25. This increase was aligned with the increase in sales and distribution expenses by 3.55% YoY to IDR6.06 trillion, and other income decreased by 23% YoY to IDR563 billion in 6M25, due to losses from changes in the fair value of biological assets of the subsidiary, PT Salim Invomas Pratama Tbk (SIMP), of IDR183 billion. This condition caused INDF’s operating profit to decrease by 0.5% YoY to IDR11.69 trillion in 6M25.

INDF’s net profit increased by 38.7% YoY to IDR8.1 trillion in 6M25. This increase was mainly due to a decrease in financial expenses to IDR2.21 trillion in 6M25, aligned with a decrease in foreign exchange losses from financing activities to IDR231 billion in 6M25 (vs. IDR3.09 trillion in 6M25).

We estimate that INDF’s net profit can potentially grow 14.4% YoY to IDR14.96 trillion in FY25F. This estimate is based on relatively stable operating performance and a stable rupiah exchange rate against the US$, which can potentially reduce financial expenses. In addition, strategic initiatives across various business segments are expected to drive growth from both the top line and bottom line in the future.

>We maintain our Buy recommendation for INDF with a higher target price of IDR9,650 per share (previous IDR9,000). This recommendation is based on calculations using the Discounted Cash Flow method with a Required Return of 7.37% and a Terminal Growth of 2.95%.

By PHINTRACO SEKURITAS | Research
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