XA Update Report | PT Kalbe Farma Tbk. (KLBF) – Healthy Top-Line Growth Holds the Line, Margins Still Feel the Pinch

 

 

By Steven Willie

19-August-2026

 

 

KLBF’s 1H26 revenue grew +14% YoY to IDR 19.5 trillion, in line with our estimates and representing 51% of our FY26F revenue forecast, a healthy half-year run-rate. 2Q26 revenue alone rose +18% YoY (+1% QoQ), with growth broad-based across all business lines and driven by both revenue and volume expansion. The Distribution & Logistics segment remained the standout performer, surging +32% YoY (+7% QoQ). GPM compressed to 38% in 1H26 (vs. 41% in 1H25), pressured by raw material costs and product mix. OPM eased to 12% (vs. 15% in 1H25), while NPM slipped to 10% (vs. 12% in 1H25), with net profit coming in at IDR 1.9 trillion (-2.8% YoY), equating to 52% of our FY26F net profit run-rate.

 

 

🔹1H26 & 2Q26 Financial Performance

 

 

• Strong double-digit growth sustained into 1H26. KLBF’s 1H26 revenue grew +14% YoY to IDR 19.5 tn, in line with our estimates and representing 51% of our FY26F revenue forecast. 2Q26 revenue continued the momentum, rising +18% YoY (+1% QoQ).

 

 

• Growth broadens across the board. The topline expansion was underpinned by a broad-based increase across business lines alongside stronger volumes. Distribution & Logistics remained the clear standout, surging +32% YoY (+7% QoQ) and lifting its contribution to total sales to 38% (vs. 34% in 2Q25). Prescription Pharmaceutical revenue rose +6% YoY (+2% QoQ), Consumer Health climbed +20% YoY (-7% QoQ), while Nutritionals grew +12% YoY (-3% QoQ).

 

 

• Margins remain under pressure from costs and mix. GPM compressed to 38% in 1H26 (vs. 41% in 1H25), driven by elevated raw material prices and an unfavorable product mix. OPM eased to 12% (vs. 15% in 1H25) as operating costs stayed elevated alongside the topline growth push.

 

 

• Bottom line softens but stays in-line with our estimates. NPM declined to 10% in 1H26 (vs. 12% in 1H25), attributable to higher COGS and elevated operating expenses. Net profit came in at IDR 1.9 tn (-2.8% YoY), equating to 52% of our FY26F net profit run-rate, still in-line with our expectations.

 

 

 

🔹 Unchanged Risks, Maintaining our outlook for 2H26F

 

 

• IDR depreciation remains an ongoing cost risk. The rupiah has weakened approximately -10% YoY to ~IDR 17,850/USD, a continued concern given the significant USD-denominated raw material base, particularly for the Nutritional segment.

 

 

• Elevated oil prices add cost pressure on both input and logistics. Having eased from its ~USD 100-110/barrel high, oil remains elevated at ~USD 85-90/barrel (+38-39% YoY) amid renewed US-Iran uncertainty after the interim peace deal expired on August 17, 2026. This keeps costs elevated for petrochemical-derived raw materials, packaging, and distribution, a meaningful line item given Enseval’s extensive delivery fleet.

 

 

• Government fuel price hike introduces a demand-side risk. In June 2026, the government raised non-subsidized fuel prices, with Pertamax climbing from IDR 12,300 to a peak of IDR 16,250/liter, easing to ~IDR 15,950/liter but still well above pre-hike levels. The squeeze on household transportation budgets poses a broader risk to consumer purchasing power.

 

 

• Mitigation continues, but risks remain live. Company is building raw material procurement buffers, diversifying import currency, and tightening OPEX discipline. We continue to monitor these risks given their potential impact on margins and volume ahead.

 

 

 

🔹 BUY Recommendation with Target Price of IDR 1,100

 

 

• We are maintaining our BUY rating on KLBF with an unchanged target price of IDR 1,100/share. At current levels, the stock trades at ~10.1x 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 competitive moat as the largest distribution network in healthcare.

 

 

 

 

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