Illustrative photo via Pexels
On paper, it has been a remarkable year for Gudang Garam. The Kediri-based clove-cigarette maker reported net profit of Rp4.52 trillion for the first nine months of 2026, up 308.56% from Rp1.1 trillion a year earlier, according to figures reported by Investor Daily.
The market does not seem convinced. Shares of PT Gudang Garam Tbk (IDX: GGRM) closed at Rp15,250 on Tuesday, down 0.65%, extending a slide of 15.26% over the past month. Foreign investors have been net sellers throughout, offloading Rp233.54 billion of the stock over that period, including Rp2.82 billion on Tuesday alone.
The profit figure hides a less flattering top line. Revenue for the nine months fell 8.67% to Rp61.49 trillion, from Rp67.33 trillion a year earlier. The company has not publicly explained what drove the jump in earnings while sales shrank, and the reporting we reviewed did not identify a cause for the share-price decline.
In a separate development, Dhoho Kediri Airport, operated by Gudang Garam subsidiary PT Surya Dhoho Investama, has been designated a regular hajj embarkation and debarkation airport for 2027 under a Ministry of Hajj and Umrah decree dated October 21. It is expected to serve 9,641 pilgrims from 15 regencies and cities in East Java.
Our analysis
When profit rises fourfold while revenue falls, investors usually ask whether the gain is repeatable. Unless Gudang Garam shows that its margins came from lasting cost discipline or pricing power rather than one-off factors, a shrinking top line is the number long-term holders are likely to watch, especially in an industry facing steady excise increases and a shift toward cheaper brands.
The airport is a reminder that Gudang Garam is now more than a cigarette company. Dhoho was a bet on Kediri’s regional growth; a hajj designation gives it a predictable annual flow of passengers, which is exactly what a young airport needs.
Sources: Investor Daily (investor.id). Sections marked “Our analysis” are Irrawaddy Media’s independent assessment. Photo: Pexels (illustrative).
