Mayora Indah Faces New Sweetened Beverage Excise as Consumer Business Gains Profit Momentum

PT Mayora Indah Tbk is preparing for a potentially important change in Indonesia’s consumer market as the government moves closer to imposing an excise on packaged sugar-sweetened beverages. The company, whose portfolio includes Kopiko, Torabika, Energen and other packaged drinks, said it would closely monitor the planned policy while supporting the government’s health objectives.

Mayora’s response comes as the company enters the second half of 2026 with stronger profitability despite only modest sales growth. Net profit reached Rp1.70 trillion in the first six months of the year, a 46.5% increase from Rp1.16 trillion a year earlier, according to the company’s latest financial statements.

Revenue rose 0.7% to Rp17.92 trillion during the period from Rp17.79 trillion a year earlier. The packaged processed food segment generated Rp11.21 trillion in sales, while processed beverages contributed Rp8.09 trillion, underscoring the importance of beverages to the group’s revenue base.

The improvement in earnings was driven largely by cost efficiency. Mayora reduced its cost of goods sold to Rp13.30 trillion from Rp14.01 trillion in the first half of 2025, a decline of about 5.1%, helping margins improve even as revenue growth remained limited.

The geographic mix also showed a stronger contribution from overseas markets. Sales in Asia increased 1.5% to Rp6.91 trillion, while sales outside Asia rose 7.9% to Rp589.18 billion, contrasting with a 0.2% decline in domestic sales to Rp10.41 trillion.

The potential beverage excise therefore comes at a time when Mayora is seeking to maintain volume and profitability across a broad consumer portfolio. Management has indicated that the company will continue assessing the potential impact of the policy as details surrounding the implementation become clearer.

Mayora has also continued to strengthen its overseas commercial reach. In June, a business-matching program involving Mayora’s Kopiko products and a Chilean buyer generated potential transactions of $28,000, providing another example of the company’s efforts to expand non-domestic demand.

The company previously completed a large share-buyback program approved by shareholders, with the original authorization allowing purchases of up to Rp1 trillion. Mayora’s 2025 annual report said 101.11 million shares had been repurchased by the end of December 2025, while the approved buyback period ran through June 2026.

Mayora’s balance sheet also improved during the first half. Total liabilities fell 22.6% to Rp10.07 trillion from Rp13.01 trillion at the end of 2025, while equity increased 2.8% to Rp18.44 trillion, giving the company greater financial room as it manages raw-material costs and changes in consumer regulation.

The next major test will be how Mayora protects demand and margins if the sweetened-beverage excise is implemented. With beverages representing a significant part of its product portfolio and overseas markets becoming increasingly important, the company’s response will be closely watched by investors in Indonesia’s consumer sector.