KONTAN.CO.ID - JAKARTA. PT Unilever Indonesia Tbk (UNVR) recorded a net profit of IDR 4.8 trillion throughout 2023. This figure is down by 10.51% compared to the net profit in 2022 amounting to IDR 5.36 trillion.

Quoting the financial report as of December 31, 2023, UNVR recorded net sales of IDR 38.6 trillion, down 6.32% from the previous period of IDR 41.21 trillion in 2022.

Sales in 2023, came from the household needs and body care division amounting to IDR 25.15 trillion, then the food and beverage division IDR 13.46 trillion. Both of these divisions are down from the achievement of the previous period in 2022 amounting to IDR 27.25 trillion and IDR 13.96 trillion.

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In research on February 16, 2024, NH Korindo analyst Cindy Alicia Ramadhania said, this sales decline is the impact of boycotts and the spread of hoax information related to the geopolitical situation in the Middle East, which has an impact on the company's brand image.

Both domestic and export sales were also recorded to have decreased in 2023, where domestic sales were recorded at IDR 37.4 trillion or down 5.2% YoY, and exports amounted to IDR 1.2 trillion or down 30.9% YoY.

"In terms of boycotts, UNVR will focus on mitigating and eliminating the negative sentiment that occurs on its brand through consumer education, besides UNVR will ensure halal certification both in stores and mass media and increase public awareness about misinformation or hoaxes," said Cindy.

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As a result, Cindy recommends an overweight on UNVR shares by lowering the target price to IDR 3,100 per share.

As for the risks from the recommendations given by Cindy, they are still geopolitical tensions, downtrading to other products, rising commodity prices, and weakening consumer purchasing power.

Editor: Syamsul Azhar