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Unilever to extend price cuts in response to market pressure
The FMCG giant has reported a 10.6 percent annual decline in profit for the first half of 2024 to Rp 2.5 trillion ($153.9 million), the lowest figure in a decade.
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A picture taken on June 5, 2015, shows the logo of Unilever at the company's headquarters in Rotterdam, Netherlands. (AFP/John Thys)
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T Unilever Indonesia plans to continue reducing product prices in the second half of the year, the publicly listed firm’s top executive said on Wednesday, adding that this was based on the assumption that commodity prices stay steady.
“The impact of negative consumer sentiment is likely to persist in the second half of the year,” Unilever Indonesia CEO Benjie Yap said during a press briefing on Wednesday.
The fast-moving consumer goods (FMCG) manufacturer reported a net profit of Rp 2.5 trillion (US$153.9 million) in the first half of 2024, marking a 10.6 percent year-on-year (yoy) decline that the company attributed in part to price adjustments for its goods sold during the period.
The figure is the lowest net profit reported by the company in the past decade.
Read also: Unilever Indonesia’s sees 5% sales decline in Q1 2024
Other factors contributing to the decline included increased spending on special offers and brand investments, Yap noted, as well as the negative consumer sentiment Unilever had experienced since December.
Sales in the first half of the year amount to Rp 19.04 trillion, down 6.2 percent yoy from the Rp 20.29 trillion logged in the same period last year.
