Unilever Indonesia's Net Profit Drops 19.5% in Semester I - 2023

Romys Binekasri, CNBC Indonesia

Market

Monday, 24/07/2023 20:20 WIB

Photo: Infographic/ 89 Years of Unilever, Growing Together with Indonesia/Aristya Rahadian

Jakarta, CNBC Indonesia – PT Unilever Indonesia, Tbk. (UNVR) in semester I – 2023 recorded a net profit of IDR 2.8 trillion or a 19.5% drop compared to the same period in 2022 which amounted to IDR 3.42 trillion.

Unilever Indonesia President Director Ira Noviarti said the decline in profit was due to the company’s sales during the first half of this year, which fell 5.4% compared to the previous year to Rp 20.3 trillion.

“We understand that inflation and the cost of living have a significant impact on consumer spending habits, this is expected to last for the next few quarters,” he said in a virtual press conference, Monday (24/7).

Ira continued further, domestic market sales fell 4.3% to Rp 19.6 trillion. Meanwhile, the export value fell 23.1% to Rp 664.95 billion.

Nonetheless, despite the current slowdown in household consumption, the company has optimism for the Indonesian market in the long term. Thus, the company will carry out several strategies in maintaining its business performance.

Ira revealed that the company’s sales in the second quarter were still affected by the closure of several B2B and B2C e-Commerce players at the end of last year. “This effect affects our topline in the first half of 2023, and we see the impact will be minimal in the second half of 2023,” he added.

Ira explained, the company implemented several strategies to maintain performance and competitiveness against competitors. Among them, strengthening and unlocking the full potential of major brands, expanding and enriching the portfolio to the premium and value segments, building an execution powerhouse to strengthen leadership in the main channels, implementing e-everything in all business lines, and maintaining the market.

“We’ll see oportunity Of pricing agar price we don’t over compared to competitors. There are brands that are very sensitive and there are brands that have the power to do the pricing,” he said.

“The company increased its volume share in the market in Semester 1 2023 compared to the same period the previous year, with support from key categories such as Oral Care, Skin Cleansing, Soy Sauce and Soup Stock, Dishwash and Fabric Cleaning,” he continued.

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