PBRX Targets Improved Performance by 2026 After Debt Restructuring

Successful Debt Restructuring Paves Way for Recovery

PT Pan Brothers Tbk (PBRX), an Indonesian garment manufacturer, is projecting improved financial performance by 2026 following the successful completion of its debt restructuring process worth US$340 million in late 2024. The company's management has outlined a clear roadmap for recovery focusing on operational stability and gradual business improvement.

Key Elements of Recovery Plan

The company's strategy for 2025-2026 includes maintaining strict adherence to the homologation agreement terms. This involves prioritizing interest payments in the short term, with principal amortization scheduled to begin in the fourth year post-restructuring. According to Fitri Ratnasari Hartono, Director of Pan Brothers, the company will maintain its current operational capacity without pursuing physical expansion during this period.

Management's Outlook

While the management is cautious about setting aggressive targets for 2026, they anticipate a better performance compared to 2025. The expected improvement is attributed to the stabilization of operations following the initial post-homologation period when order volumes were still recovering. The company's cautious approach reflects its commitment to maintaining financial discipline while rebuilding its business foundation.