There Is A Negative Geopolitical Sentiment, Unilever's Net Profit Drops 10.5 Percent In 2023

JAKARTA - PT Unilever Indonesia Tbk (UNVR) recorded a net profit of IDR 4.8 trillion in 2023 or a decrease of 10.5 percent when compared to 2022 which is IDR 5.3 trillion.

The decline in net profit was triggered by a decrease in UNVR's net sales in 2023 of IDR 38.6 trillion. This figure is down 7.3 percent when compared to 2022 which reached IDR 41.2 trillion.

As for the plan, domestic sales were recorded at IDR 37.40 trillion and export sales amounted to IDR 1.20 trillion. Based on its products, household and body care needs amounted to IDR 25.15 trillion and food and beverage products amounted to IDR 13.46 trillion.

President Director of PT Unilever Indonesia Tbk Benjie Yap said his party continues to strengthen business fundamentals in becoming a top priority throughout 2023.

"In the third quarter of 2023, our business began to grow by recording an increase in domestic sales by 3.3 percent, driven by a positive base volume growth of 4.3 percent," he explained in his statement, Wednesday, February 7, 2024.

Benjie said that although this positive momentum continued until October 2023, in November and December due to the impact of shifting sentiment caused by geopolitical situations, the decline in domestic sales for the closing year of 2023 to 5.2 percent.

According to Benjie, with consistent efforts to navigate this crisis has begun to show progress in January 2024. In the future, his party remains committed to focusing on long-term growth by consistently implementing five strategic priorities.

Meanwhile, Unilever Indonesia's five strategic priorities are strengthening and unlocking the potential of key brands, expanding its portfolio to premium and value segments, building powerhouse executions, leading transformational capabilities and placing the principle of sustainability as the core of the Company.

Benjie said that in 2023, the Company will continue its strategic efforts to encourage market development that focuses on expanding its reach in various sectors.

He gave an example of the success in this effort seen in the Foods and Refreshment category, especially in main brands such as Royco and Bango through the creation of more diverse and delicious dishes.

"This approach has succeeded in encouraging an extraordinary increase in usage frequency and was able to attract more users. This leads to an increase in volume share for the Nutrition business," he said.

In addition, Pepsodent's toothpaste brand also experienced an increase in market value and volume after the Siang and Night Gigi Brush campaign which lasted until October 2023.

Menurut Benjie dalam dua bulan terakhir kuartal IV 2023, Perseroan menghadapi tantangan eksternal yang tidak terduga, termasuk adanya penyebaran informasi yang tidak benar terkait situasi geopolitik.

Benjie said that although this challenge had an impact on business and operations, the Company managed to overcome the situation and is currently starting to see encouraging developments.

Our efforts to consistently clarify misleading information, as well as thanks to the extraordinary support from trusted partners and loyal consumers, are an important factor in achieving the Company's progress. With the current positive trend, we believe we are on the right track to grow our business in 2024, "explained Benjie.