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Unilever Indonesia’s profit down 62% as sales slump
The local subsidiary of the consumer goods giant has attributed its profit slump to an 18 percent decline in third-quarter sales due to price instability affecting its distributors and reduced customer demand.
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The logo of global consumer goods giant Unilever adorns a pillar at the PT Unilever Indonesia headquarters in BSD City, Tangerang, as seen in this undated photo. (File/unilever.co.id)
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T Unilever Indonesia has reported an 18 percent year-on-year (yoy) decline in sales to Rp 8.4 trillion (US$537 million) in the third quarter of this year, causing its net profit to nosedive 62 percent yoy to Rp 543 billion.
The publicly listed fast-moving consumer goods (FMCG) manufacturer blamed the slump on price instability, which had impacted sales of distributors, as well as on cutbacks by consumers.
From January through September 2024, Unilever Indonesia recorded Rp 27.4 trillion in cumulative sales, 10.1 percent less than the same period last year.
The largest contributor to the decline was its core business line Home and Personal Care, which includes brands like Pepsodent, Lifebuoy and Rinso, with an 11.9 percent annual drop in the first nine months of this year. Meanwhile, sales were down 6.1 percent yoy in its Food and Refreshment business.
Unilever booked a net profit of Rp 3 trillion in the first nine months of 2024, down 28.1 percent compared to the same period in 2023.
Unilever Indonesia president director Benjie Yap acknowledged the company was “navigating challenging times”, but assured shareholders its leadership had a “clear understanding of the steps required to address them”.
“We are undertaking necessary adjustments, from refining our product offerings to strengthening our operational efficiency, with a long-term perspective guiding these actions. While the impact of these actions will take time, I am confident in our ability to recover and return to growth,” Yap said in a statement on Wednesday.
