XA Update Report | PT Kalbe Farma Tbk. (KLBF) – Solid Revenue Delivery Amid Margin Pressure

 

 

By Steven Willie (Research associate)

6-May-2026

 

 

KLBF’s 1Q26 revenue grew +10% YoY (+4% QoQ) to IDR 9.7 trillion — in line with our estimates and representing 25% of our FY26F revenue forecast, a healthy quarterly run-rate. The standout driver was the Distribution & Logistics segment, which surged +21% YoY (-1% QoQ). The Pharmaceutical segment followed with a solid +8% YoY (+2% QoQ). Consumer Health expanded just +3% YoY (+14% QoQ), while Nutritionals posted a modest +2% YoY (+8% QoQ). GPM compressed to 38% in 1Q26 (vs. 41% in 1Q25; 38% in 4Q25). OPM held at 14% (vs. 16% in 1Q25; flat QoQ), as selling expenses as a proportion of revenue remained elevated at ~20%. NPM dipped slightly to 11% (vs. 12% in 1Q25; flat QoQ), with net profit coming in at IDR 1.03 trillion (-4% YoY, 0% QoQ) — equating to 28% of our FY26F net profit run-rate

 

 

 

🔹 1Q26 Financial Performance

 

• Solid top-line start in to FY26. KLBF’s 1Q26 revenue grew +10% YoY (+4% QoQ) to IDR 9.7 tn — in line with our estimates and representing 25% of our FY26F revenue forecast, a healthy quarterly run-rate.

 

 

• Distribution outpaces the pack; core segments hold steady. The standout driver was the Distribution & Logistics segment, which surged +21% YoY (-1% QoQ), lifting the segment’s contribution to total revenue to 36% (vs. 33% in 1Q25). The Pharmaceutical segment followed with a solid +8% YoY (+2% QoQ). Growth at the periphery was more muted: Consumer Health expanded just +3% YoY (+14% QoQ), while Nutritionals posted a modest +2% YoY (+8% QoQ).

 

 

• Margin soften on costs and mix; selling expenses stay elevated in pursuit of growth. GPM compressed to 38% in 1Q26 (vs. 41% in 1Q25; 38% in 4Q25), pressured by rising raw material costs and an unfavorable product mix across non-distribution segments, while the Distribution segment itself faced principal mix headwinds. OPM held at 14% (vs. 16% in 1Q25; flat QoQ), as selling expenses as a proportion of revenue remained elevated at ~20% as a marketing investment to sustain growth momentum.

 

 

• Bottom line down modestly, but still in-line with our estimates. NPM dipped slightly to 11% (vs. 12% in 1Q25; flat QoQ), with net profit coming in at IDR 1.03 tn (-4% YoY, 0% QoQ) — equating to 28% of our FY26F net profit run-rate. The year-on-year decline reflects the combined drag from higher COGS and elevated operating expenditure, which more than offset the solid topline expansion.

 

 

 

🔹 Buyback Program Continues

 

• Returning Capital, Reinforcing Confidence. Following the successful execution of its IDR 250 bn share buyback program (Dec 2025-March 2026), KLBF has announced an additional buyback of up to IDR 500 bn for the period of 2 April–2 July 2026, reinforcing management’s tangible and shareholder-friendly capital return strategy.

 

 

 

🔹 FY26 Outlook: Navigating a More Complex Macro Landscape

 

• Consumer softness and oil prices remain a drag on volume. Global oil prices have risen approximately ~77–78% YTD to ~USD 100/barrel, with sustained elevated energy costs posing a clear risk to consumer purchasing power — particularly for KLBF’s middle-income consumer base.

 

 

• IDR depreciation adds a second layer of cost risk. The rupiah has weakened ~4% YTD to ~IDR 17,400/USD, an ongoing concern given that a significant portion of raw materials for the Nutritional segment is denominated in USD. Company’s mitigation strategy — comprising proactive raw material procurement and import currency diversification — provides a meaningful buffer, though a sustained weakening beyond current levels could further pressure GPM.

 

 

 

🔹 BUY Recommendation with Target Price of IDR 1,100 (Prev. 1,800)

 

• We maintain our BUY rating on KLBF with an adjusted target price of IDR 1,100/share (previously IDR 1,800), reflecting a more conservative valuation multiple amid near-term margin compression and macro headwinds. At current levels, the stock trades at ~11.0x forward P/E — near its -2 standard deviation band of its 3-year historical P/E range, offering a compelling entry point. We continue to favor KLBF as its multi-segment platform provides a natural hedge against segment-specific cyclicality, with the Enseval distribution network serving as a deeply entrenched competitive moat — well-positioned to capture Indonesia’s long-term secular tailwinds in healthcare access and demographic growth.

 

Download full report HERE.

 

 

 

 

NH Korindo Sekuritas Indonesia berizin dan diawasi Otoritas Jasa Keuangan (OJK). Untuk informasi lebih lanjut, anda dapat menghubuni CS kami via email CSO@nhsec.co.id