Jakarta, CNBC Indonesia – The share performance of the consumer goods issuer PT Unilever Indonesia Tbk (UNVR) continues to have a downward trend after touching its heyday 4 years ago. Along with falling share prices, UNVR’s net profit has also continued to decline since 2018.
According to data from the Indonesia Stock Exchange (IDX), as of the end of the first trading session on Wednesday (23/2/2022), UNVR’s share price was at the level of Rp 3,810/share. Since the beginning of the year, UNVR’s shares have been minus 7.30%.
Within a year, this stock has fallen 47.81%, in 3 years 57.12% ‘nyungsep’.
Meanwhile, since touching the highest level of Rp 11,180/share on December 29, 2017, UNVR’s shares have plunged 65.83%. (See graph).
Investors don’t seem impressed with UNVR’s financial performance after mid-2018.
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 graph).
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 over the same period the previous year to Rp 39.5 trillion.
As a result, UNVR’s earnings per share also fell to Rp. 151/share from the previous year of Rp. 188/share.
Management’s Explanation of Poor Performance
Seeing the lackluster performance last year, UNVR Management also gave a response.
Gazetted CNBC Indonesia Previously, 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 had affected consumer 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 this year.
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 recommendations
Seeing the recent slump in UNVR’s financial performance, out of 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.
As for, the median target price the analysts suggested was at Rp 4,350/share with a mean value of Rp 4,445/share.
CNBC INDONESIA RESEARCH TEAM
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