Jakarta, CNBC Indonesia – Investors have long considered the shares of the consumer goods giant PT Unilever Indonesia Tbk (UNVR) as defensive stocks. However, the performance of UNVR’s shares did not end the downward trend as financial report cards fell.
Referring to data from the Indonesia Stock Exchange (IDX), as of the close of trading on Wednesday (23/2/2022), UNVR’s share price was at the level of IDR 3,820/share. Since the beginning of the year, UNVR’s shares have been minus 7.06%.
Within a year, this stock has fallen 47.67% and in 3 years 57.01% ‘nyungsep’.
Meanwhile, since touching the highest level of Rp 11,180/share on December 29, 2017, UNVR’s shares have plunged 65.83%. (See the graph below).
The decline in UNVR’s share price since touching its highest level in early 2018 has been accompanied by a decline in the company’s performance since that year. This appears to send a signal to the market that investors are not impressed with UNVR’s post-2018 financial performance.
In 2018, UNVR managed to record a net income of IDR 41.80 trillion, an increase of 1.45% on an annual basis / yoy. In the same year, UNVR generated a net profit of Rp 9.08 trillion, a double-digit increase of 29.65% yoy.
After that year, UNVR’s net profit continued to decline until the end of 2021. (See the graph below).
Most recently, in 2021, UNVR’s net profit fell 19.6% on an annual basis to Rp 5.76 trillion from the previous Rp 7.16 trillion. The company’s net sales also fell 7.97 percent compared to the same period the previous year to Rp 39.5 trillion.
Voice Unlock Management
Seeing the lackluster performance last year, the management of UNVR also gave a response.
As previously reported by CNBC Indonesia, on February 11, 2022, UNVR management pointed out that the cause of the decline in UNVR’s net sales over the past year was due to the tightening mobility policy due to the Covid-19 pandemic which has affected consumers’ purchasing power, especially in the market segment where UNVR operates.
In addition, said the UNVR, various commodity prices that are used as raw materials, some of which are crude oil (crude oil), palm-oil (CPO) also experienced a significant price spike compared to 2020.
“Surging raw material prices, declining consumer purchasing power for our products, and the transition time to return to purchasing power before the pandemic are just some of the challenges that will emerge in 2021,” explained PT Unilever Indonesia Tbk President Director Ira Noviarti, in an official statement.
Ira said, the company continues to boost various products that have great opportunities, for example from the Foods and Refreshment category which has succeeded in supporting the Company’s growth in 2021.
Nevertheless, UNVR management believes that the company will recover in the future.
“Two years through the pandemic for the company is a reset period and prepares a strong foundation for long-term growth and victory,” said Ira.
Analyst Recommendation
Observing the poor performance of UNVR, from 19 analysts compiled by Refinitiv, only 1 has a strong-buy rating, 2 analysts provide buy or buy recommendations. Meanwhile, 10 analysts gave a hold rating, and 6 gave a sell rating, aka sell.
Meanwhile, the median target price suggested by analysts is at Rp 4,350/share with a mean value of Rp 4,445/share.
CNBC INDONESIA RESEARCH TEAM
–
