Executive Summary

Key insights and market outlook

Sampoerna Agro (SGRO) has absorbed Rp 230 billion in capital expenditure (capex) as of September 2025, with plans to reach Rp 400 billion by year-end ¹

². The company is optimistic about its production growth, targeting a 3-5% increase in crude palm oil (CPO) and fresh fruit bunches (FFB) production for 2026 ³. SGRO's capex for 2025 is budgeted between Rp 400 billion to Rp 500 billion ¹.

Full Analysis

02

Deep Dive Analysis

Sampoerna Agro Maintains Growth Trajectory Amid Strategic Investments

Capital Expenditure Update

Sampoerna Agro (SGRO) has made significant progress in its capital expenditure plans for 2025. As of September 2025, the company has utilized Rp 230 billion in capex ¹

², with management expressing confidence in reaching their target of Rp 400 billion by the end of the year ¹. The company's overall capex budget for 2025 ranges between Rp 400 billion to Rp 500 billion ¹.

Production Growth Projections for 2026

The company is optimistic about its production prospects for 2026, with plans to achieve a 3-5% growth in both crude palm oil (CPO) and fresh fruit bunches (FFB) production ³

. While specific targets are still being finalized, management indicates that this growth range is likely ³. This projection is supported by the company's improved production performance in 2025, where total FFB production rose by 13% year-on-year to 1.2 million tons by Q3 2025 ³.

Operational Highlights

SGRO's production recovery is attributed to the fading impact of El-Nino, which had negatively affected production in 2024 ³

. The company's core production operations have shown significant improvement: internal FFB production rose by 12% YoY to 846,810 tons, while external FFB production (plasma and third-party) increased by 16% YoY to 402,820 tons by Q3 2025 ³.

Future Outlook

While the 2026 capex budget is still under finalization, there are indications that it may be larger than the current year's allocation ²

. The company's ability to maintain its growth trajectory will be supported by its strategic positioning following the acquisition by POSCO International ³.

References