Pan Brothers Swings Back to Loss, Last Year's Profit a Distant Memory
PT Pan Brothers Tbk. (PBRX) reported a stark reversal in performance for the first half of 2026. Despite a double-digit increase in sales, the textile and garment issuer swung to a net loss after posting a jumbo profit in the same period last year. The company’s accumulated losses have now swelled to US$284.75 million.
Based on the financial report as of 30 June 2026, PBRX’s net sales rose 12.1% year-on-year (yoy) to US$134.69 million, from US$120.11 million in the first half of 2025. However, the company recorded a net loss of US$5.19 million, a stark contrast to the net profit of US$93.07 million in the same period last year.
A deeper analysis reveals the cause did not stem from declining sales. On the contrary, sales continued to grow and gross profit even increased to US$11.83 million from US$11.01 million. The problem was that selling expenses and general and administrative expenses eroded the gross profit, resulting in the company recording an operating loss of US$804,689. This condition was then exacerbated by finance costs of US$4.90 million, which widened the pre-tax loss to US$4.74 million.
In the financial report, the most striking factor is the disappearance of the profit source that underpinned the company’s earnings last year. In the first half of 2025, PBRX booked other income of US$102.25 million. Meanwhile, in the first half of 2026, this item plummeted drastically to just US$1.25 million. This coincides with a debt restructuring gain of US$101.6 million recorded in the mid-year financial report last year. Thus, the jumbo profit posted by PBRX in the first half of 2025 was not solely supported by operational activities, but also by a very large non-operational gain. When that profit source did not reappear this year, the company’s performance immediately reversed into the red even though sales still grew.
From the balance sheet side, pressure is also evident in the cash position. PBRX’s cash and cash equivalents fell to US$7.63 million as of the end of June 2026 from US$15.62 million at the end of 2025, shrinking by about 51% in just six months. Operating cash flow remained negative at US$4.59 million, while investing activities also drained cash by US$2.52 million, so the company’s total cash remained under pressure throughout the first half of this year. On the other hand, PBRX’s liability structure remains quite large. As of the end of June 2026, total liabilities were recorded at US$155.26 million, consisting of syndicated loans of US$52.30 million, bonds payable of US$31.44 million, and long-term bank loans of US$6.57 million.