]

  1. Introduction

Indonesia’s capital market growth and the rise of CMR

Indonesia’s capital market has grown significantly over the past decade, driven by better regulations, more investors participating, and companies seeking financing. The Indonesia Stock Exchange (IDX) has become a popular platform for companies to raise capital, improve liquidity, and gain greater visibility. As a result, more Initial Public Offerings (IPOs) have been launched, reflecting Indonesia’s economic development and a maturing financial system.

CMRY operates in the premium dairy and processed food market. Its products include yogurt, milk-based drinks, and ready-to-eat foods. The company has a strong brand, focuses on quality, and has tapped into Indonesia’s growing middle-class demand — factors that helped it grow quickly before going public.

CMRY held its IPO on December 6, 2021. The IPO was well-received by investors, with high subscription levels and strong early stock performance. Investors were drawn to CMRY for several compelling reasons: steady revenue growth, high profitability, exposure to Indonesia’s robust consumer sector, and a clear focus on premium product expansion.

The IPO happened as the economy recovered from the pandemic, with consumer demand bouncing back. Investors preferred companies with strong fundamentals and defensive traits — making CMRY a highly attractive investment. Its business model, which combines repeat purchases with brand loyalty, makes it an ideal case study in Indonesian IPO performance.

  1. IPO Objectives and Proceeds

What CMRY set out to achieve — and how much it raised

2.1 IPO Overview 

CMRY raised approximately IDR 3.66 trillion through its IPO, offering around 1.19 billion shares — accounting for roughly 15% of its total issued shares. The IPO price was set at IDR 3,080 per share, giving the company a valuation higher than many of its peers.

  1. Use of IPO Proceeds

A strategic allocation that drove measurable results

CMRY’s IPO prospectus outlined a clear and disciplined allocation of raised funds, strategically aligned to support expansion and operational growth.

Key Outcomes of Fund Deployment

  • Successfully increased production capacity — especially for high-demand products like yogurt and dairy drinks, reflected in growing sales volumes post-IPO.
  • Expanded market presence beyond major cities into smaller towns, making products more accessible and building wider reach.
  • Continued product innovation — new variants and ready-to-eat lines were launched, demonstrating effective diversification.
  • Clear link between fund use and financial performance: revenue grew steadily in the years following the IPO.

Overall, CMRY largely achieved its IPO goals. It increased production capacity, maintained strong revenue growth, and strengthened its brand in the premium FMCG segment. However, rising input costs — especially for raw materials and logistics — have put pressure on profit margins, signaling that efficiency and cost management remain areas of focus.

  1. Post-IPO Financial Performance (2021–2025)

Trend analysis across revenue and profitability 

4.1 Revenue Trend Analysis 

CMRY’s revenue grew strongly and steadily after its IPO. From approximately IDR 4.0 trillion in 2021, revenue climbed to IDR 9.0 trillion by 2024 — more than a twofold increase in just three years. This rapid growth reflects the immediate impact of IPO funds: expanded production and improved distribution directly translated into top-line gains.

* Net profit 2025 projection based on IDN Financials data. Source: PT Cisarua Mountain Dairy Tbk Annual Reports 2021–2024.

4.2 Profit Growth Analysis

In addition to strong revenue growth, CMRY’s profitability improved significantly. Net profit rose from approximately IDR 1.06 trillion in 2022 to IDR 2.03 trillion in 2025 — a remarkable earnings trajectory over a short period.

Notably, net profit grew faster than revenue, signaling improved operational efficiency. This was driven by economies of scale (higher production volumes reducing per-unit costs), better cost management, and optimized resource allocation. CMRY maintained and even improved profit margins during expansion — particularly impressive in the intensely competitive FMCG industry.

4.3 Risk Implications

Despite strong overall performance, the trend analysis highlights potential risks going forward:

  • Slight growth slowdown after 2023 may signal market saturation in certain segments, making sustained high growth more challenging.
  • While profit growth has been strong, external factors such as rising raw material costs (e.g., milk prices), higher logistics expenses, and inflation could compress margins if not carefully managed.
  • As the company matures, competitive pressure from both domestic and international FMCG players could impact market share and pricing power.
  1. Stock Price Analysis

Three phases of post-IPO market behavior 

CMRY’s IPO price was IDR 3,080 per share. The market responded positively right away — within the first six months, the stock surged to levels above IDR 5,000–6,000, a significant premium over the listing price.

This pattern is typical for high-growth IPO stocks, where early optimism often leads to temporary overvaluation. As post-IPO financial data became available, investors reassessed CMRY’s value based on actual results rather than expectations. Over time, the stock continued to attract investors, supported by strong fundamentals and consistent execution.

The key takeaway: CMRY’s stock price journey underscores the importance of distinguishing between short-term market sentiment and long-term intrinsic value when evaluating IPO investments.

  1. Investment Decision Analysis

Balancing growth potential against valuation risk

If given the opportunity to invest in CMRY’s IPO, a balanced approach would weigh both the strong investment thesis and the inherent risks of a premium-priced growth stock.

The Bull Case for CMRY 

  • Stable FMCG sector demand, supported by Indonesia’s large and growing population.
  • Strong brand recognition through Cimory, driving customer loyalty and pricing power in the premium dairy segment.
  • Indonesia’s low per capita dairy consumption relative to global standards provides significant room for market expansion.
  • Solid pre-IPO financials demonstrated a scalable, profitable business model before any public capital was deployed.

Key Risks to Monitor 

  • Relatively high IPO valuation left limited margin of safety, with growth expectations already priced in.
  • IPO stocks are historically volatile in the short term, with price corrections common after initial enthusiasm fades.
  • Rising raw material and logistics costs could compress profit margins, particularly as the company scales.

  1. Conclusion

A benchmark IPO case in Indonesia’s evolving capital market

CMRY represents a successful IPO in Indonesia’s capital market. The company deployed its IPO proceeds effectively — expanding operations, strengthening distribution, and innovating its product portfolio. Post-IPO, it delivered strong and consistent financial results, with revenue more than doubling and net profit growing even faster.

Its stock price followed a classic high-growth IPO trajectory: an early surge driven by enthusiasm, a correction as the market recalibrated, and eventual stabilization supported by solid fundamentals. For long-term investors, CMRY offers attractive growth potential in Indonesia’s underpenetrated premium dairy segment.

Investors must remain mindful of valuation risks and external cost pressures, but on balance, CMRY stands as a high-quality IPO with strong execution — and a compelling case study in how a consumer brand can leverage public markets to accelerate sustainable, profitable growth.

References 

Euromonitor International. (2022). Dairy products in Indonesia. 

PT Cisarua Mountain Dairy Tbk. (2021). Prospectus: Initial public offering. Indonesia Stock Exchange. 

PT Cisarua Mountain Dairy Tbk. (2023). Annual report 2022. 

PT Cisarua Mountain Dairy Tbk. (2024). Annual report 2023. 

PT Cisarua Mountain Dairy Tbk. (2025). Annual report 2024. 

Ritter, J. R. (1991). The long-run performance of initial public offerings. The Journal of Finance, 46(1), 3–27. 

World Bank. (2023). Indonesia economic outlook. 

IDN Financials. (2025). CMRY financial data.

MM Pro Business School ·  Global Academic Community · Where Leaders Are Made