JAKARTA. The financial performance of PT Unilever Tbk (UNVR) has been going down during the recent few years. During 2011 to 2016, the business growth of this issuer tended to go down, despite the price of its share has been increasing in every year.
The 2016 unaudited financial report shows that UNVR’s revenues had been growing by 9.8%. However, the revenues of this company actually had been going down,
In 2011, for an example, UNVR’s revenues grew by 19% (yoy) to Rp 23.47 trillion.
Since that period, UNVR’s revenues growth continued declining. In 2012, 2013, and 2014, UNVR’s revenues grew by 16.3%, 12.6%, and 12.2%, respectively. The lowest revenues growth took place in 2015, by 5.7% to Rp 36.48 trillion, while at the same year, the net profits even dropped by 1.2% to Rp 5.85 trillion.
The bottom line of UNVR has been continuously going down. In 2014, this consumer goods producer booked a 23.05% net profits growth to Rp 4.16 trillion. In 2012, the net profits grew by 16.2% and continuously went down until 2015. “This was more because of the decrease in public’s purchasing power,” analyst at First Asia Capital David Sutyanto told KONTAN, Thursday (16/2).
Analyst at NH Korindo Sekurities Joni Wintarja also estimates that the performance of UNVR was closely related to the domestic economic growth.
Home and personal care products contributed to 70% of UNVR’s consolidated revenues. This segment recorded the lowest growth by only 3% in 2015. “This was in line with national economic growth at 4.8% at that year,” Joni mentioned in his research.
As information, Indonesia’s economy in 2011 grew by 6.5%. At the same year, UNVR’s revenues grew by 19%.
The tight competiton in consumer sector has also moderately affected to UNVR’s performance. At the ‘mature’ position, UNVR has been able to maintain its market shares, such as in the ice cream markets.
By launching some advertisement strategies and market penetrations, UNVR’s ice cream brands are still leading in the markets. During the quarter III-2016, UNVR’s ice cream brands controlled of more than 60% of ice cream market shares, despite of massive competition from the new competitors, such as Glico and Wings.
Joni and David recommend ‘buy’ for UNVR with the price target of Rp 47,900 per a share and Rp 50,000 per a share, respectively.
The management of UNVR admitted that the purchasing power has affected to UNVR’s performance. Financial Director of UNVR Tevilyan Yudhistira Rusli said, the demands have recovered in the last year. “However, (the demands) have not yet recovered to the level of the previous years,” he mentioned in an official statement, Thursday (16/2).