Indonesia’s leading poultry giants, Japfa Comfeed Indonesia (JPFA), Charoen Pokphand Indonesia (CPIN), and Malindo Feedmill (MAIN), faced significant headwinds in the second quarter of 2025. A severe downturn in broiler and Day-Old Chick (DOC) prices, coupled with sluggish demand, eroded profitability across the board. While JPFA demonstrated relative resilience in a challenging environment, CPIN and MAIN experienced substantial corrections, with some segments even recording operational losses. This downturn aligns with prior market outlooks, which anticipated pressure due to the absence of the festive Lebaran season and the historical effects of the “Suro month” on poultry demand.

Q2 2025 Earnings: A Tale of Undershoot

The latest financial reports reveal a sector under considerable stress, with all three major players falling short of analyst expectations:

• JPFA: Reported a net profit decline of 18% Quarter-on-Quarter (QoQ) and 32% Year-on-Year (YoY) in 2Q25. This dragged its 1H25 net profit down by 16% YoY, placing it significantly below expectations, reaching only 43% and 40% of Stockbit and Consensus 2025F estimates, respectively.

• CPIN: Experienced a dramatic net profit plunge in 2Q25, dropping by a staggering 76% QoQ and 66% YoY. Despite a modest 7% YoY growth in 1H25, the company’s performance remained below projections, achieving only 42% and 45% of Stockbit and Consensus 2025F estimates.

• MAIN: Posted its first quarterly loss since 1Q23, with its 1H25 net profit plummeting by a sharp 91% YoY, signaling profound operational difficulties.

Segmental Breakdown: Where the Pressure Points Lie

The Q2 2025 performance highlights specific segments bearing the brunt of market volatility.

Broiler Segment: JPFA’s Resilience Shines Amidst Losses

The broiler segment, a cornerstone for these companies, saw sharp declines in prices, yet JPFA managed to weather the storm more effectively. While broiler prices dropped by 15% QoQ to an average of IDR 16,326 per kilogram, JPFA still posted an operating profit of IDR 292 billion, an impressive 14% QoQ increase. This stands in stark contrast to its peers: CPIN, historically a strong performer in this segment, recorded an operating loss of IDR 130 billion, and MAIN also registered a loss of IDR 77 billion.

DOC Segment: A Collective Retreat

The Day-Old Chick (DOC) segment experienced a universal weakening. DOC prices plunged by 24% QoQ to an average of IDR 4,196 per head, pushing all three companies into operating losses for this segment in 2Q25. JPFA, once again, proved the most resilient, with a comparatively smaller loss of IDR 13 billion. MAIN followed with a loss of IDR 45 billion, while CPIN recorded the deepest operational deficit at IDR 197 billion.

Processed Chicken: Spreading Weakness Beyond Raw Materials

The ripple effect of market pressures extended to the processed chicken segment. While JPFA and MAIN managed to achieve annual revenue growth in 2Q25, their profitability was still compromised. JPFA’s operating profit weakened to IDR 79 billion, a 36% YoY decline. MAIN, meanwhile, slipped back into an operating loss of IDR 12 billion, a minor improvement from its IDR 14 billion loss in 2Q24 but still a negative result. CPIN’s processed chicken segment saw a 17% QoQ revenue decrease, with operating profit dramatically shrinking to IDR 46 billion, a steep fall from its IDR 331 billion profit in 1Q25.