Unilever mulls production boost as profits surge by 19 percent

The Jakarta Post ,  Jakarta   |  Sat, 06/02/2007 8:54 AM  |  Business

The Jakarta Post, Jakarta

PT Unilever Indonesia Tbk, the largest consumer goods producer in Indonesia, will pay out 91 percent of its 2006 net profit of Rp 1.72 trillion as dividends, or Rp 205 per share.

The dividend consists of the interim dividend of Rp 80 per share paid in December of last year and the final dividend of Rp 125 per share to be paid in July.

Unilever Indonesia booked a net profit of Rp 1.72 trillion ($194.68 million) in 2006, surging by 19 percent from Rp 1.44 trillion in 2005.

This increase was attributed in part to a 13-percent growth in hygiene and personal care products, with laundry detergents Rinso and Surf and Ponds skin lotion as the largest contributors. Foods and ice cream products grew 17 percent, with Bango sweet soy sauce and Taro Snacks leading the growth.

""This company has succeeded in gaining market share in almost all of its key categories amid tight competition on consumer goods,"" said Unilever Indonesia president director Maurits Lalisang in a press conference held after the annual shareholder meeting here Thursday.

Unilever Indonesia, which is 85 percent owned by the Netherlands-based company Mavibel BV and 15 percent by the investing public, has no intention of issuing more shares this year to finance new investments, Maurits said.

The company plans to invest about Rp 500 billion this year to improve its production capacity, an increase of over 50 percent from last year.

""At this moment, we are still focusing on strengthening the existing production capacity to support the growth of skin, soy sauce and ice cream products,"" said Maurits.

Maurits added that although the main focus of the new investment was on existing production, Unilever Indonesia was open to the possibility of acquiring other companies.

""We are still searching for suitable companies to acquire. It could be either a food or a personal care company. We want to make sure that the acquired company can support our core business of food and home and personal care,"" added Maurits.

In 2003, Unilever Indonesia bought Taro Snacks, produced by PT Rasa Murni Utama. Sales of that product contributed about 13 percent to the company's overall sales growth in 2006.

Unilever Indonesia has maintained double-digit growth for 15 years and the management expects the same for this year.

""We're targeting the low double digits, around 11 to 12 percent, for this year, considering the rise in commodity prices will likely affect production costs,"" said Maurits.

Unilever Indonesia, which has been listed on the Jakarta Stock Exchange since 1982, was the seventh largest by market capitalization out of the 344 companies listed in the exchange at the end of 2006. (JP/12)

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