Sampoerna stock: Q3 profit jumps as excise risks remain

Published on 11/04/2026 at 01:13 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Sampoerna stock draws attention after nine-month profit surged, while analysts caution that cost and tax effects drove much of the gain. Excise policy remains crucial.

Profit recovery meets industry pressure

HM Sampoerna's nine-month profit growth outpaced sales growth, helped by lower costs, other income and reduced tax expense.
Analysts caution that downtrading, illegal cigarettes and 2027 excise policy could limit the durability of the recovery.
Machine-made kretek cigarettes remained the company's main sales segment through September.

Sampoerna, ID1000074008, Illustration mit AI erstellt.

PT HM Sampoerna Tbk reported a sharp improvement in profitability for the nine months through September 2026, according to Beritana. Net income rose 44.42 percent year on year, while net sales increased to IDR 87.51 trillion from IDR 83.74 trillion.

Profit gains outpace sales growth

Sales growth reached 4.5 percent during the period, but profit expanded much faster. Beritana cited lower selling expenses, higher other income and a reduction in income tax expense as key contributors to the result.

Other income increased from IDR 178.13 billion to IDR 511.78 billion by the end of September. Income tax expense fell from IDR 2.36 trillion to IDR 1.84 trillion, while selling expenses declined 2.6 percent to IDR 5.83 trillion.

Industry risks remain in focus

Mirae Asset Sekuritas analyst Nafan Aji Gusta Utama said the change in the cost mix was a major driver of the profit improvement. He also cautioned that the margin recovery was not driven entirely by expansion in the core business.

Downtrading toward cheaper cigarettes, illegal products and high tobacco excise rates continue to pressure the industry. The direction of Indonesia's 2027 excise policy will therefore be important for Sampoerna's pricing strategy and profitability.

Machine-made kretek cigarettes remained the largest sales segment, reaching IDR 52.51 trillion, up from IDR 45.43 trillion a year earlier. The figures point to stronger earnings leverage, but investors still need to assess whether the improvement can persist after tax and cost effects fade.