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Unilever’s profits plummet despite increase in sales
Unilever booked a 2.63 percent year-on-year increase in total revenue to Rp 32.36 trillion (US$2.29 billion) during the January to September period but saw an overall profit drop.
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The Unilever logo is seen on the Unilever De Brug building in Rotterdam, the Netherlands. (Courtesy of https://www.unilever.com/-)
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onsumer goods giant PT Unilever Indonesia’s profits plummeted in the January to September period of this year, despite the company having seen a slight increase in sales in the first nine months of the year.
The publicly listed company booked a 2.63 percent year-on-year (yoy) increase in total revenue to Rp 32.36 trillion (US$2.29 billion) from January to September, comprising Rp 30.8 trillion in domestic sales and Rp 1.6 trillion in exports.
The growth in sales, however, failed to boost the company’s profits during the period as Unilever only pocketed a total Rp 5.4 trillion, an 18.47 percent decrease compared to last year's number in the same period.
The steep decline was partly caused by a 2.94-percent yoy increase in marketing and selling expenses during the first nine months and a decline in other income at 99.92 percent yoy.
The fall in net other income was caused by the sales of its Spreads business last year, Unilever Indonesia director and corporate secretary Sancoyo Antarikso said Thursday.
“The sales of the Spreads business in the third quarter of last year increased our profit by Rp 2.1 trillion,” he said in a statement obtained by The Jakarta Post.
