The Company has been focusing on business and organisational transformation, recently obtaining shareholder approval to divest its Ice Cream business. These strategic moves underscore Unilever Indonesia’s commitment to reinforcing its market positioning and driving long-term, sustainable growth.
Overall Performance
- Net sales of IDR 35.1 trillion, resulting in net profits of IDR 3.4 trillion for FY 2024.
- Domestic sales declined by 8.7% year-on-year due to negative Underlying Price Growth (UPG) of -3.6% and negative Underlying Volume Growth (UVG) of -5.2%. Full-year sales were significantly impacted by decisive actions aimed at addressing operational issues, as the Company prioritizes long-term growth.
- Gross margin at 47.6%, a decline of 213 bps vs LY, due to transformation costs and customer stock reduction.
- Net profit decreased by 29.8% vs LY, driven by sales deleverage and necessary transformation investments.
- Market share recovered in FY 2024 compared to December 2023 lows but remains below the YTD October 2023 level.
- Launched and relaunched 46 innovations to strengthen brands and portfolio, tapping into the growing consumer segment.
Statement from President Director, Benjie Yap
"We have taken decisive and bold actions to address key issues to the maximum extent during 2024. While this has impacted short-term results, it has strengthened our business fundamentals. These reset actions will lower our cost base and drive growth. We are beginning to see progress and believe these efforts will provide us with a stronger foundation for long-term growth.
Our key priorities include sharpening our focus on high-potential areas; streamlining our organization; building a strong, capable, best-in-class talent pool; enhancing brand superiority; and continuously improving operational efficiency and execution. By ensuring effective strategy implementation and delivering measurable results, we are positioning our business for long-term success. With careful planning and dedicated effort, we are confident in our ability to navigate these challenges and build a stronger future."
Progress & Potentials
Healthy Distributive Trade
The Company has strengthened its distribution channels, building on transformation programs. To date, the transformation has successfully reduced trade stocks with distributors by around 50% compared to 2021 levels, reaching the lowest stock level in over 10 years and impacted both growth and profit. The Company successfully achieved zero overdue from DT partners and implemented a new pricing structure to ensure consistent and transparent pricing across the market.
Healthy Gross Margin
The Company recorded a gross margin of 47.6%, supported by a strong cost reset program in operations. This includes major transformation program in the factories and productivity initiatives for non-factory based. Continuously improving gross margins is crucial for positioning the business for long-term profitability and sustainability, ensuring continued success in the increasingly competitive FMCG market.
Looking Ahead to 2025
- The Company remains committed to long-term and sustainable growth over short-term performance and will continue to take decisive actions to address operational issues.
- Building on the progress made throughout 2024, the Company will continue Go-To-Market transformation in 2025, including expanding our direct and indirect coverage through larger distributors and ensuring seamless execution in the market.
- Improvement in gross margin through operational efficiencies and volume leverage.
- Stronger brands and portfolio, with continued investment behind the brands to ensure they remain competitive and relevant.
As these efforts provide a stronger foundation for long-term growth, the Company anticipates seeing the benefits of the reset actions in the second half of 2025.