Indonesia’s vibrant dairy sector witnessed a striking divergence in performance during the first half of 2025 (1H25). Cisarua Mountain Dairy (CMRY) delivered exceptional growth, while Ultrajaya Milk Industry & Trading Company (ULTJ) faced significant headwinds, underscoring the critical role of diversification and operational efficiency in navigating market dynamics.
The Tale of Two Dairies: 1H25 Performance Unpacked
Cisarua’s Stellar Ascent
Cisarua Mountain Dairy demonstrated remarkable resilience and growth. The company reported a net profit of IDR 514 billion in Q2 2025, marking a robust +24% year-on-year (YoY) and +7% quarter-on-quarter (QoQ) increase. This strong quarterly performance propelled CMRY’s 1H25 net profit to a formidable IDR 994 billion, up +24% YoY. This figure impressively surpassed consensus estimates, hitting 59% of the 2025F forecast, positioning CMRY as a clear market leader in profitability within the Indonesian consumer goods space.
Ultrajaya’s Revenue Headwinds
In stark contrast, Ultrajaya Milk Industry encountered considerable challenges. ULTJ posted a net profit of only IDR 239 billion in Q2 2025, a steep decline of -32% YoY and -34% QoQ. Consequently, the company’s 1H25 net profit plummeted by -20% YoY to IDR 604 billion. This sharp reversal highlights significant pressures on Ultrajaya’s core business, which is heavily reliant on the dairy segment.
Diving Deeper: Segmental Dynamics and Diversification
Dairy Sector’s Mixed Signals
The dairy segment, a cornerstone for both companies, revealed a nuanced picture. CMRY’s “Dairy Product” revenue saw a modest recovery in Q2 2025, growing +3% YoY and +8% QoQ to IDR 933 billion. However, the 1H25 performance for this segment still registered a -4% YoY correction, primarily due to a weak Q1 2025. This softness led to a reduced contribution of “Dairy Product” to CMRY’s total revenue, falling to 35% in 1H25 from 42% in 1H24.
For ULTJ, total revenue in Q2 2025 declined to IDR 1.8 trillion, representing a significant drop of -16% YoY and -21% QoQ. This marks Ultrajaya’s lowest quarterly revenue since Q3 2021. The 1H25 total revenue for ULTJ stood at IDR 4.1 trillion, a decrease of -8% YoY. Given that ULTJ’s dairy segment contributes approximately 77% of its total revenue (as of 9M24), this overall revenue decline largely reflects the struggles within its primary dairy operations.
CMRY’s Consumer Foods: The Growth Engine
While its dairy segment navigated soft patches, CMRY’s “Consumer Foods” division emerged as a powerful growth engine. This segment recorded impressive growth of +33% YoY and +13% QoQ in Q2 2025, driving CMRY’s overall total revenue growth of +21% YoY and +11% QoQ during the period. Over 1H25, CMRY’s “Consumer Foods” segment revenue soared by a substantial +32% YoY. This strategic diversification acted as a crucial buffer, shielding CMRY from the broader dairy sector’s inconsistencies and illustrating the benefits of a well-balanced portfolio.
The Efficiency Edge: Opex & Margins
Cisarua’s Operational Acumen
Beyond revenue growth, CMRY demonstrated superior operational efficiency. The company maintained a relatively moderate increase in operating expenses (Opex) at just +6% YoY for 1H25. This prudent cost management, combined with strong revenue performance, propelled CMRY’s operating profit margin upwards to 22.2% in 1H25, an expansion from 19.8% in 1H24. As a direct result, CMRY’s operating profit expanded by a healthy +31% YoY, reinforcing its robust financial health.
Ultrajaya’s Margin Compression
Conversely, Ultrajaya faced a squeeze on its margins. Despite declining revenues, ULTJ’s Opex rose by +5% YoY in 1H25. This unfavorable dynamic led to a contraction in its operating profit margin, which dropped to 16.7% in 1H25 from 18.9% in 1H24. The combination of falling revenue and rising costs directly contributed to ULTJ’s operating profit shrinking by -19% YoY, highlighting challenges in cost control amidst a weakening top-line performance.