Despite facing headwinds, the Company retains a substantial market share and leads in 13 categories, underscoring the sustained preference for its products among consumers.
Overall Performance YTD September 2024
- Net Sales of IDR 27.4 trillion resulting in Net Profits of IDR 3.0 trillion in YTD September 2024.
- Domestic revenue declined by 9.9% year-on-year due to negative Underlying Price Growth (UPG) of -4.1% and negative Underlying Volume Growth (UVG) of -5.8%. The declined in UVG is contributed by price instability and customer stock reduction in Q3.
- Delivered Gross Margins of 48.4% despite the decline in UPG in YTD September 2024.
- Profit Before Tax (PBT) Margins declined by 358 basis points year on year as a result of higher investment in advertising and volume deleveraging.
- Relatively stable market share in 2024 but still below YTD October 2023 level.
A statement from President Director, Benjie Yap
“We are navigating challenging time as reflected in our results, we have a clear understanding of the steps required to address them. Our focus remains on delivering consistent quality and innovation to our consumers, while adapting to the rapidly evolving market landscape.
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. We are committed to emerging stronger, more resilient, and positioned to seize future opportunities.”
Taking Action – Fixing Category, Channel, Cost and Organisations
Category
Strengthening power brands and portfolios by introducing new product forms that have gained traction from consumers such as Tresemme serum, Ponds Sun Serum and Royco Saus Tiram.
Channel
- Transforming distributive trade (DT) and effective stock management.
- Optimizing promotions to remain competitive while investing in brands and portfolios.
- Strengthen presence and performance on socials as it is the preferred shopping place for a growing number of consumers.
Cost
Reassess and reset cost, improve efficiency and resource allocation, and redirect investment towards strategic priorities that drive growth and innovation.
Organisations
Continue making the organization more efficient and accountable through continuous transformation, including changes at the leadership level. The Company believes that organizational transformation will bring new energy, culture of ongoing improvement, and innovation. This way, the business is always well-prepared for future challenges and opportunities.
Looking Forward
"We are undergoing a complete transformation and driving operational improvements, that will take some time, at least until the first half of next year. That being said, we fully believe that this is the right thing to do and, in our ability, to turn around the performance. Again, we are committed to emerging stronger, or resilient, and well positioned to seize future opportunities."