Unilever Indonesia — the local arm of Anglo-Dutch consumer goods giant Unilever NV, based in Rotterdam, and Unilever plc, based in London — saw its net profit climb by 9.2 percent last year to Rp 6.39 trillion (US$479.7 million) compared to the same period in 2015.

Its net sales also increased by almost 10 percent year-on-year (yoy) to Rp 40.05 trillion, according to the company’s financial statement published on the Indonesia Stock Exchange (IDX) website on Monday. The audited financial report confirmed its indicative financial results published earlier last month.

Unilever only booked a 2 percent increase in its net profit in 2015 due to the slowing economy versus 7.5 percent bottom line growth in 2014. Its net sales, meanwhile, expanded by 5.7 percent in 2015 compared to around 12 percent in the previous year.

“This achievement [in 2016] was driven by innovations carried out by the company that supported the development strategy of its product categories,” Unilever Indonesia finance director Tevilyan Yudhistira Rusli wrote in a recent official statement.

Unilever Indonesia has 39 brands, which it has divided into four categories — personal care, home care, food and refreshments. The firm launched several new products in its personal and home care categories last year, in addition to launching products in smaller packages as part of efforts to improve sales amid people’s weak purchasing power.

Unilever Indonesia would diversify its products as that had been effective in growing its top line despite the cool economy, Bina Artha Sekuritas senior analyst Reza Priyambada said over the phone on Monday. “If that happens, their business could even grow by double digits this year,” he said.

Indonesia’s economy expanded by 5.02 percent last year compared to 4.88 percent a year earlier. Private consumption, which accounted for more than half of the country’s gross domestic product (GDP), stabilized at 5.01 percent of growth.

“Although we saw stronger consumer demand throughout 2016, the demand had yet to return to the same level recorded in previous years,” Tevilyan said, adding that the firm would grab consumers through more innovations, optimized proximity channels and improved product accessibility.

The government aims to see the economy grow by 5.1 percent this year, while several economists believe it could expand by 5.3 percent. Meanwhile, economists have projected that annual inflation could reach the upper end of Bank Indonesia’s (BI) target range of 3 to 5 percent.

“Inflation and the currency rate are two main factors that will change consumers’ confidence in spending,” Mirae Asset Sekuritas Indonesia analyst Dang Maulida wrote in a research note. “However, we are of the view that Indonesian consumers can face the risks in line with the economic growth.”

The consumer confidence index, according to the results of a BI survey, stagnated at 115.3 in January compared to 115.4 in December and 115.9 in November last year. The survey revealed that price pressures until July 2017 would be higher, with the price expectation index for the next six months rising to 176, the highest point in almost two years.

“We expect Unilever’s revenue to grow higher than this year’s but probably with a smaller hike in its net profit because of a pressure on production costs, especially raw materials,” Sucor Asset Management investment director Jemmy Paul W. wrote in a text message.

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