Group Overview Operation and Financial Review Financials Other Information Sustainability and Governance 95 Annual Report 2025 Notes to the financial statements For the financial year ended 31 December 2025 4. Revenue (cont’d) (b) Estimating variable consideration for sale of products The amount of revenue recognised is based on the consideration that the Group received in exchange for transferring promised goods to the customers, and adjusted for expected returns and price adjustments arising from product quality. The Group estimates the variable considerations such as right of return and price adjustments arising from product quality and changes in selling price based on sales volume, using expected value developed based on historical experience or using most likely amount developed based on historical experience taking into account also current purchasing patterns. The management established estimation method that ensure inclusion of these variable consideration only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Meanwhile, the recognition is made when supporting documents have been received from customers or when it is probable price adjustments will be given. 5. Cost of sales Group Note 2025 2024 Rp million Rp million Raw materials used 7,239,179 4,203,904 Harvesting, upkeep and cultivation costs 3,084,832 2,721,531 Manufacturing and other overhead expenses 5,269,642 4,936,585 Net changes in inventories 38,179 (649,361) 15,631,832 11,212,659 Changes in allowance for decline in market value and obsolescence of inventories 23 29,570 (9,689) Total 23 15,661,402 11,202,970 During the financial years ended 31 December 2025 and 2024, there were no purchases from any individual supplier with cumulative amount exceeded 10% of the total cost of sales.
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