JAKARTA – PT Unilever Indonesia Tbk (UNVR) recently reported a net profit of IDR 3.37 trillion for the fiscal year 2024, reflecting a nearly 30% year-on-year (yoy) decline.

UNVR's management acknowledged that this decline was due to a business reset aimed at reducing costs and driving growth.

"We are starting to see progress, and we believe these efforts will lay a stronger foundation for long-term growth," said Benjie Yap in an official statement.

With FY 2024 results falling short of expectations, BRI Danareksa Sekuritas has cut its net profit forecast for UNVR to IDR 3.3 trillion for FY 2025 and IDR 3.45 trillion for FY 2026. These revised projections are 9.9% lower for FY 2025 and 13.1% lower for FY 2026 compared to earlier forecasts.

The downgrades are attributed to weak sales volume, lower Average Selling Prices (ASP), and high operational expenses (opex). UNVR is also expected to continue reducing inventory and harmonizing prices in the first half (1H) of 2025.

Although most FMCG (Fast-Moving Consumer Goods) companies are gearing up for the Eid season in the first quarter of this year, the surge in demand during this season is not expected to have a significant impact on UNVR.

"Therefore, a potential catalyst for UNVR in the future will likely be its improved performance, which is expected to be more visible in 2H 2025," BRI Danareksa Sekuritas noted in its report.

Additionally, the high dividend yield expectations from UNVR are believed to support its stock price strength. As a result, BRI Danareksa Sekuritas has upgraded its rating for UNVR shares to "Hold," with a target price of IDR 1,500 per share. (KR/ZH)