Unilever Indonesia

Stock Quote Unilever Indonesia - UNVR:

Business Summary

Unilever Indonesia's business activities and products comprise the manufacturing, marketing and distribution of consumer goods. This includes soaps, detergents, margarine, ice cream, savory, soy sauce, cosmetic products, tea based beverages and fruit juice.

Products manufactured by Unilever Indonesia can be divided in two business lines: home and personal care products (including soaps, detergents, cosmetics), which account for about 73 percent of the company's total sales, and foods and refreshment (including margarine, dairy products, ice cream, tea), which account for the remaining 27 percent of sales. It is estimated that each Indonesian household uses at least one product that is sold by Unilever.

In 2012, the Mega Distribution Centre in Cibitung (West Java) started operations. With a floor area of around 80,000 square meters, it constitutes the biggest warehouse in Indonesia for a Fast Moving Consumer Goods (FMCG) company and the largest Unilever warehouse in the world. Unilever Indonesia’s distribution network comprises more than one million outlets across the Indonesian archipelago, more than half of which is covered directly by the company. The company's products are marketed through a network of more than 800 independent distributors who serve hundreds of thousands of stores across Indonesia.

About 55 percent of the company's input costs are linked to foreign currencies. That is why sharp rupiah depreciation constitutes a challenge for Unilever Indonesia.

Per 2016 Unilever Indonesia owns nine factories; seven located in the Jababeka Industrial Zone (Cikarang, near Jakarta) and two in Rungkut (Surabaya). The company's head office relocated from Jakarta to BSD City in late-2016. Unilever Indonesia has 39 core brands and nearly 1,000 stock keeping units.

Unilever Indonesia says it has only just begun to tap the potential of Indonesia's market. Regarding the medium to long term, the company expects to grow further on the back of Indonesia’s demographic profile. The country, Southeast Asia's largest economy, has a young and growing population. In combination with Indonesia's robust economic growth it creates a rapidly expanding middle class that enjoys rising disposable income, hence forming a strengthening consumer force.

Unilever Indonesia's Financial Highlights:

	2015	2016	2017
Net Sales	36,484	40,054	41,205
Gross Profit	18,649	20,459	21,220
Net Income	5,852	6,391	7,005
Operating Income	7,939	8,708	9,496
Profit before Tax	7,829	8,572	9,372
EBITDA	8,444	9,258	10,150
Total Assets	15,730	16,746	18,906
Total Liabilities	10,903	12,042	13,733
Basic Earnings per Share¹	766	838	918
Cash Dividend per Share¹	758	799	870

 

	2009	2010	2011	2012	2013	2014
Net Sales	18,247	19,690	23,469	27,303	30,757	34,511
Gross Profit	9,042	10,205	12,006	13,889	15,778	17,207
Net Income	3,044	3,387	4,163	4,839	5,353	5,927
Operating Income	4,215	4,543	5,568	6,498	7,164	8,013
Profit before Tax	4,249	4,546	5,575	6,467	7,158	7,928
EBITDA	4,474	4,832	5,929	6,857	7,675	8,388
Total Assets	7,485	8,701	10,482	11,985	12,703	14,281
Total Liabilities	3,776	4,652	6,801	8,017	8,449	9,534
Basic Earnings per Share¹	399	444	546	634	701	776
Cash Dividend per Share¹		399	294	596	664	707

^{in billion IDR rupiah unless otherwise stated
¹ in IDR rupiah
Source: Unilever Indonesia, Annual Report 2017}

Projection Unilever Indonesia's Future Corporate Earnings:

	2018	2019	2020F	2021F	2022F
Net Sales	41,802.0	42,923.0	43,541.0	45,801.0	48,612.0
EBITDA	13,079.0	10,988.0	11,199.0	11,825.0	12,456.0
Net Profit	9,081.0	7,393.0	7,788.0	8,314.0	8,834.0
P/E Ratio (x)	34.4	42.3	40.2	37.6	35.4
P/BV (x)	42.9	59.9	55.8	52.0	48.5

^{in billion IDR rupiah (except stated otherwise)
Source: Danareksa Sekuritas (11.06.2020)}