Unilever Prepares 2.5 Percent Spending Capital From 2023 Sales

Photo: Doc. Antara

JAKARTA - Consumer goods issuer PT Unilever Indonesia Tbk. (UNVR) targets the capital expenditure (capex) allocation ratio in the range of 2.4 percent to 2.5 percent of total 2023 revenue. The 2024 capex will be used for investment in order to support business growth.

For information, UNVR recorded a net profit of IDR 4.8 trillion in 2023, down 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.

President Director of PT Unilever Indonesia, Tbk. Benjie Yap said that overall the company prepared a capital expenditure budget of IDR 930 billion to IDR 970 billion for 2024.

"2.4 percent-2.5 percent of the total full year 2023 revenue, not up 2 percent from the 2023 capex," he explained in a 2023 performance presentation, Wednesday, February 7, 2024.

In the future, Benjie said that 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 the company will also boost production productivity, one of which is by replacing machines with faster performance.

UNVR Finance Director Vivek Agarwal said the company's obstacles in 2024 came from global geopolitical conditions that would have an impact on consumer sentiment and this would be a top priority in anticipating this in the future.

"We also monitor commodity inflation, inflation in certain categories, so we also monitor dollar and euro exchange rates. We have prepared various strategic plans," he concluded.