This performance marks the Company’s fourth consecutive quarter of growth, demonstrating solid progress in strengthening its fundamentals and advancing its long-term growth objectives.
Performance Highlights
- Domestic sales grew by 7.1%, supported by underlying volume growth of 7.3%.
- Net sales for continuing operations reached IDR 16.9 trillion, growing 7.1% year-on-year.
- Net profit from continuing operations grew double digit by 10.2% year-on-year to IDR 2.1 trillion.
- Gross margin from continuing operations was 46.6%, a decline of 168 basis points compared to the prior year. Excluding transformation costs, gross margin stood at 47.7%.
- Profit before tax from continuing operations remained steady at 15.7%. Excluding transformation costs, profit before tax improved by 45 basis points versus the prior year to 16.7%
Statement from President Director, Benjie Yap
“Our first-half 2026 performance demonstrates that the actions we have taken to strengthen the fundamentals of our business are delivering results. We achieved positive growth in both sales and profit, supported by strong underlying volume growth, reflecting stronger execution in the market. These results reinforce our confidence that our strategy is delivering tangible results and that the business is progressing in the right direction. While we continue to operate in a dynamic environment and invest in transforming the business for long-term competitiveness, we remain focused on driving consistent, quality-led growth and creating sustainable value for all stakeholders.”
Our Progress
The Company anchors its strategic priorities on three core pillars—Category, Channel, and Cost—each reinforcing the ambition of delivering long‑term, quality-led growth.
1. Category: Building Desire at Scale Through Stronger Brands and Innovation
We continued to strengthen our Category competitiveness by building greater consumer desire across our portfolio through superior innovation and social-first demand creation. Guided by our “Desire at Scale” approach, we enhanced brand superiority through differentiated science, aesthetics, and sensorial. At the same time, we accelerated consumer engagement through creator advocacy and culturally relevant partnerships, increasing brand visibility and relevance, particularly among younger consumers.
These efforts translated into broad-based growth across the business, with 18 of our 24 brands delivering growth in the first half of 2026. Importantly, our core businesses that previously faced headwinds has now returned to growth, while our high growth segments continued to deliver strong double-digit growth. Taken together, these results give us confidence that the recovery is gaining traction across more of the portfolio. With both our core businesses returning to growth and our high growth segments continuing to scale, we are building a stronger and more balanced growth momentum.
2. Channel: Strengthening Execution Where Consumers Shop
We continued to strengthen our route-to-market capabilities and execution across channels, contributing to 7.1% domestic sales growth in the first half of 2026. Growth was supported by positive contributions across our key channels, reflecting improved execution, stronger availability, and enhanced shopper engagement.
General Trade growth was supported by continued progress in our More Stores and Better Stores agenda, which expanded reach, improved availability, and strengthened execution at point of sale. At the same time, Modern Trade benefited from stronger execution and impactful category activation, which helped increase shopper engagement, enhance visibility, and improve conversion at the point of sale. Health & Beauty and eCommerce channels continued to build momentum, driven by our focus on differentiated portfolios, stronger social-first demand creation, and enhanced end-to-end capabilities.
Importantly, these results demonstrate that our growth drivers are working across multiple channels. From stronger route-to-market execution, to more effective demand creation, and sharper portfolio choices, we are building growth that is broader-based and increasingly sustainable.
3. Cost: Driving Growth Through Discipline and Productivity
We continued to drive productivity and strengthen cost discipline across the business, enabling us to reinvest behind growth while protecting profitability. Through calibrated pricing actions, productivity initiatives and disciplined cost management, we maintained resilience amid ongoing cost pressures while delivering margin progression.
At the same time, we remained focused on maximising the return on every rupiah invested by making deliberate choices on where to deploy resources for growth. This included continued investment behind our priority brands and accelerated digital capabilities, helping us strengthen brand equity, improve effectiveness, and support sustainable growth over the long term.
Looking Forward
“As we look ahead, we remain focused on sustaining competitive growth through disciplined execution of our Category, Channel, and Cost priorities. While the external environment remains dynamic, we are confident in our ability to navigate volatility through stronger fundamentals and brands, improved market execution, and continued productivity. Supported by our Hungry to Win culture, we believe we are well positioned to strengthen our competitiveness, accelerate quality-led growth, and create long-term value for our shareholders and stakeholders,” said Benjie.