Performance Highlights
- Domestic sales grew by 3.5%, supported by underlying volume growth of 2.1%.
- Net sales for continuing operations reached IDR 8.4 trillion, growing 2.8% year-on-year.
- Net profit for continuing operations IDR 1.3 trillion, an increase of 14.1% vs last year.
- Gross margin for continuing operations was 48.2%, a decrease of 18 basis points compared to last year. Excluding transformation cost, gross margin remained strong at 48.8%.
- Profit before tax for continuing operations increased to 18.9%, an uplift of 167 basis points year-on-year.
- Sariwangi Tea divestment completed in Q1 2026.
Statement from President Director, Benjie Yap
“Our first-quarter 2026 results mark an important step forward, reflecting the momentum built throughout 2025. While the external environment remains challenging, the disciplined actions taken over the past year are increasingly reflected in the quality of our growth, our execution in the market and the resilience of our financial performance. Our Q1 result reinforces our confidence that the business is making a good progress, supported by improving fundamentals and strengthening momentum”.
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 by sharpening our portfolio toward the fastest‑growing segments and accelerating social‑first demand creation.
Our focus remains on ensuring that our innovation is not only relevant, but also desirable for consumers. The company continued to improve product accessibility through the introduction of value-oriented price pack, while scaling brand activation to reach more consumers. Building on these efforts, the Company further tailored the execution across channel, launching Channel-specific innovation to enhance conversion and effectiveness. In addition, the Company also advanced format‑led innovation to unlock new usage occasions and strengthen brand competitiveness across categories.
To strengthen its core brands, the company continued to implement a fully integrated 6Ps (Product, Packaging, Proposition, Promotion, Place, Pricing) approach, while maintaining investment levels to ensure that the spend translated into demand creation. In parallel, progress on portfolio transformation improve toward higher‑growth segments, with their contribution increasing from 8.3% to 10.0% in Q1 2026 versus Q1 2025. This reflects our disciplined efforts on reshaping the portfolio to strengthen growth quality and improve the overall competitiveness of the business.
2. Channel: Strengthening Channel Infrastructure and Accelerating Channels of the Future
Channel infrastructure and execution excellence remained key drivers to our performance. We posted domestic growth of 3.5%, supported by continued momentum across general trade and modern trade, as well as strong growth contribution from Health and Beauty and digital commerce. This result reflect our improved execution on the ground and stronger alignment between demand creation and in-store availability.
Beyond General Trade and Modern Trade, the Company accelerated growth in future‑focused channels, such as Health & Beauty. We focused on designing portfolio specific for Health and Beauty shopper, strengthening partnership, and shaping category growth. The exclusive launch of TRESemmé Silk Press and strategic partnership with AS Watsons were examples of this effort.
Digital Commerce is another channel that we have prioritised, where we ride on cultural moments and conversations, improve search and visibility as well as strengthen our partnership with affiliate communities.
3. Cost: Relentless Focus on Margin Improvement and Efficiency
The Company continued to improve gross margin, embedding productivity across the business, and accelerating digital transformation. Through continued cost discipline and transformation, the Company continued to strengthen margin resilience. As volumes recovered, positive operating leverage began to flow through the P&L, supporting gross margin performance despite ongoing input cost and foreign exchange pressures. These efforts reinforced a more efficient cost base and a stronger foundation for sustainable growth.
Looking Forward
Looking ahead, the Company remains focused on driving growth ahead of the market while proactively anticipating external pressures. “Despite the dynamic conditions, we continue to expect modest margin improvement for the full year 2026. Our priority remains unchanged: strengthening the fundamentals of the business, delivering consistent growth, and creating sustainable value for shareholders,” said Benjie.