PT Unilever Indonesia, Tbk. (the “Company”) today released its audited financial results for 2023. The Company recorded net sales of IDR 38.6 trillion, net profit of IDR 4.8 trillion, and improved Gross Margins by 346 bps compared to 2022.
Benjie Yap, the newly appointed President Director of PT Unilever Indonesia, Tbk, remarked, “Our commitment to strengthening the fundamentals remained our top priority throughout 2023. In Q32023, we returned to growth with 3.3% increase in domestic sales, driven by a positive underlying volume growth of 4.3%. While this positive momentum continued through Oct 2023, we were adversely impacted in Nov and Dec due to shifting consumer sentiment arising from the geopolitical situation, resulted on our FY 2023 domestic sales being -5.2%. However, our consistent efforts to navigate through this crisis have started to show progress in January 2024. Moving forward, we remain committed to focusing on long term growth by consistently executing our five strategic priorities.”
Unilever Indonesia’s five strategic priorities are:
- Strengthen and unlock the core brands;
- Expand the portfolio;
- Build an execution powerhouse;
- Lead transformational capabilities; and
- Sustainability at our core.
High impact innovations to address consumer needs across all segments, supported by expanded media investments
Over the past year, the Company introduced a number of innovations across core, premium, and value segments to meet our consumer expectations.
In the premium segment, the Company introduced Lux Body Wash, Vaseline Gluta Hya, Magnum Matcha, and Rinso Capsule. In the value segment, the Company expanded its portfolio by introducing Glow & Lovely and Lifebuoy Dishwash Liquid, complementing the existing portfolio in the Skin Cleansing and Dishwash category. The Company addressed challenges in the Beauty and Wellbeing category by launching Ponds Bright Miracles and introducing the NIASORCINOL technology. To meet the surging demand for Sun Care and Serums in the body care category, the Company also unveiled Citra Body Serum and Vaseline Sunscreen.
These innovations, combined with the entire portfolio of the Company’s core brands, have been brought to the market supported by a substantial increase in advertising spending, which reached 8.4% of net sales in 2023.
Widening Reach through Continuous Market Development
In 2023, the Company continued its strategic efforts to drive market development, focusing on expanding its reach across various sectors. A prime example of this success is in the Foods and Refreshments categories, where the Company’s emphasis on core brands, such as Royco and Bango, translated into the creation of more diverse and delicious dishes. This targeted approach drove a notable increase in usage and attracted more users, leading to a volume share gain for the Nutrition business. Pepsodent, the toothpaste brand, also saw an increase in market share value and volume following its "Brush Teeth Day and Night" campaign, which ran until October 2023.
2023 Challenges and the Way Forward
In the final two months of Q4 2023, the Company encountered unexpected external challenges, including the dissemination of false information related to the external geopolitical situation. While these challenges impacted the Company’s business and operations, the Company continues to navigate through the situation and has already made encouraging progress.
Our consistent efforts to clarify any misleading information, coupled with the support from our trusted partners and loyal consumers, have been instrumental in achieving this progress. With this positive trend, we are confident that we are back on the right track to grow the business in 2024," Benjie explained.
Expressing gratitude for the unwavering support from loyal consumers, customers, partners, and stakeholders during these challenging times, Benjie emphasised the Company’s commitment to its values and mission. He concluded, “As always, we are committed to integrity, humanity, and delivering high-quality, responsible products. We remain resilient and committed to delivering consistent, profitable, competitive, and responsible growth.”