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Unilever Indonesia’s profit down 6.8% amid soaring input costs
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Publicly listed consumer giant Unilever Indonesia's headquarters in BSD, Tangerang, are pictured in this undated photo. (File/unilever.co.id)
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T Unilever Indonesia, a major manufacturer of fast-moving consumer goods (FMCG), saw its net profit drop 6.8 percent year on year (yoy) to Rp 5.36 trillion (US$354.6 million) in 2022 amid increased input costs.
The company’s cost of goods sold (COGS) jumped by more than 11 percent yoy to Rp 22.15 trillion in 2022. Ira Noviarti, president director at Unilever Indonesia, cited the surge in commodity and fuel prices as the reason for this trend.
In addition, Unilever’s marketing expenses rose 7.5 percent yoy to Rp 8.45 trillion in 2022 with around a third going to advertising and marketing research.
"Despite challenges stemming from soaring commodity and fuel prices, we still managed to increase our competitiveness with a larger market share in 2022," Ira said in a statement on Thursday.
Read also: Retail sales to rebound, as consumer confidence rises: BI surveys
The effects of higher spending were felt in the home and personal care segment, which accounted for more than two thirds of Unilever's sales last year. Income from the segment dropped 19.1 percent yoy, according to the company’s report.
Meanwhile, the company saw income from the food and refreshment segment surge by 33.4 percent yoy.
