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T Unilever Indonesia (UNVR) reported encouraging results in the company'€™s financial performance during the first half of this year, thanks to the country'€™s strong domestic demands.

According to Unilever'€™s latest financial reports, its net sales surged 15.5 percent to Rp 15.43 trillion (US$1.5 billion) between January to June. Sales increases occurred in both of its business divisions'€”home and personal care; and foods and refreshments.

Home and personal care sales rose 14.2 percent to Rp 11.2 trillion, while those in foods and refreshment climbed 19 percent to Rp 4.23 trillion.

Unilever external relations director and corporate secretary Sancoyo Antarikso said on Friday that the sales volume increase was caused by product price hikes. '€œIn the first half of the year, we increased our prices by an average 5 percent,'€ Sancoyo said during a telephone interview.

 He said that some of its newly launched products had performed quite well in the first half of the year, such as facial care products for men and mini ice cream.

Data from Unilever said that the publicly listed company had launched a total of 13 new products and relaunched six items in the first six months of 2013.

 In line with higher sales, publicly listed Unilever also reported a surge in its costs of goods sold, which climbed 12.8 percent to Rp 7.46 trillion. The company recorded increases in all of its cost components, including labor costs and production expenses.

However, an increase in its other income and a decline in its finance improved Unilever'€™s bottom line (net profit), rising 21.2 percent to Rp 2.82 trillion.

 In the second half of the year, Unilever, part of the Anglo-Dutch Unilever NV, will be on the lookout for significant changes in consumer spending, triggered by the latest hikes in fuel and electricity prices, as well as transportation tariffs. An increase in Bank Indonesia'€™s benchmark interest rate was also expected to squeeze spending as it pushed consumer credit rates higher, Sancoyo added.

'€œWe are cautious. A lot of things that happened in the past few months will effect consumer spending after Idul Fitri,'€ he said, without providing details on the company'€™s estimation.

According to Sancoyo, this year'€™s price hikes differ from those in the past. '€œThe situation is out of the ordinary because the hikes seem to have happened all at once or at the same time,'€ he added.

Unilever hopes that its sales in food and personal care in July will help step up its overall business in 2013, as products in the two segments are considered the most sought after in the period leading to Idul Fitri.

It expects its upcoming new products to boost business as well. However, it would not bring in new brands to Indonesia this year, and instead, would develop its existing ones, he said. As of now, Unilever manages around 43 brands.

By the end of June 2013, Unilever'€™s total assets reached Rp 14.19 trillion. Its liabilities amounted to Rp 9.45 trillion and its equities stood at Rp 4.24 trillion. Unilever'€™s shares closed at Rp 31,450 on Friday, down 1.6 percent from the previous day.