Pt Unilever Indonesia Tbk · IDX:UNVR
Pt Unilever Indonesia Tbk — Q3 2024 Earnings Presentation
28 slides from Pt Unilever Indonesia Tbk's earnings presentation, Oct 23, 2024
Slide 1: PT Unilever Indonesia Tbk Q3 2024 Earnings Call
PT Unilever Indonesia Tbk Q3 2024 Earnings Call Oct 23rd, 2024
Slide 2: Safe Harbour Statement
Unilever Safe Indonesia Harbour Q3 2024 Results Statement This Release / Communication, except for the historical information, may contain statements, including the words or phrases such as ‘expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, g
Slide 3: Earnings Call: Benjie Yap, Chief Executive Officer
PT Unilever Indonesia Tbk Earnings Call Q3 2024 Benjie Yap Chief Executive Officer
Slide 4: Challenges Current Indonesia Q3 2024 Results
UnileverChallenges Current Indonesia Q3 2024 Results External Internal ➢ Price instability across channels ➢ Softening demands ➢ Need for: • further operational improvements • greater digitization ➢ Continue portfolio expansion GROWTH ACTION PLAN (GAP)
Slide 5: Disappointing delivery in Q3 2024
Unilever Indonesia Disappointing delivery Q3 2024 in Q3Results 2024 1 Pronounced decline in sales from price instability and customer stock reduction. 2 Lower Net Profit due to deleveraging and higher restructuring costs. Market share recovery from December 2023 low but remain well below YTD Oct 202
Slide 6: Relatively stable market share in 2024 but still below YTD Oct 2023
Unilever Indonesia Relatively stable market Q3 2024 share Results in 2024 but still below YTD Oct 2023 38.5% 35.4% 35.5% 34.9% 33.9% 31.7% 29.0% 29.0% 28.4% 27.2% Value Volume YTD Oct'23 Dec'23 Q1 2024 Q2 2024 L3M (Jun24-Aug24) * Nutrition include Juice and Tea (within Tea Bag market only) ** Ice Cr
Slide 7: Q3 2024 Indonesia Financial Results
Unilever Q3 2024 Indonesia Financial Results Q3 2024 Results Sales YTD Sep 2024 Net Profit YTD Sep 2024 IDR 27.4 T (-10.1% YoY) IDR 3.0 T Domestic: -9.9% (-28.1% YoY) UPG -4.1% | UVG -5.8% Export: -17.5% Sales Q3 2024 Net Profit Q3 2024 IDR 8.4 T (-18.0% YoY) IDR 0.5 T (-62.0% YoY) Domestic: -18.2%
Slide 8: Significant UVG decline in Q3
Unilever Indonesia Significant UVG decline Q3 2024 in Q3 Results 2024 Underlying Volume Growth (UVG) Trend 0.2% -1.8% Price instability impacting sales from our distributors -12.6% UVGUVG -16.1% -16% -16.1% Customer stock reduction Q423 Q124 Q224 Q324
Slide 9: Growth Action Plan (GAP) Update
UnileverAction Growth Indonesia PlanStrategy (GAP) Update Get more from the core Be market makers Step up our impact Unmissable brand superiority Market development Deliver our big 4 sustainable priorities Breakthrough Drive premiumization multi-years innovations Build back Gross Margin Build tier-2
Slide 10: Growth Action Plan (GAP) Update
UnileverAction Growth Indonesia PlanStrategy (GAP) Update Get more from the core Be market makers Step up our impact Category Go-To-Market Cost Stronger Brands and Distributive Trade & Cost Reset Portfolios Minimarket Pricing & Promotion
Slide 11: Go-To-Market
Go-To-Market
Slide 12: Go-To-Market Transformation Journey
Unilever Indonesia Strategy Update Go-To-Market Transformation Journey 2024 2025 Q1 Q2 Q3 Q4 Q4 Q1 Q1 Q2 Q2 Q3 Q3 Q4 More stores: 100% big store coverage More stores, better stores: increase coverage and optimize quality of direct coverage Tbd: DSR capability building Distributive Customer Stock Red
Slide 13: Go-To-Market Transformation: Stock Reduction
Unilever Indonesia Strategy Update Go-To-Market Transformation Stock Reduction Period: Q3 2024 – Q1 2025 ~ 50% reduction in ➢ Building frequent replenishment capability customer stock in key channels ➢ Future Fitting DT Channels ➢ Higher focus on driving competitive sell-out growth ➢ Improve distrib
Slide 14: DT Digital Transformation
Unilever Indonesia Strategy Update IMPROVEMENT DT Digital Transformation END TO END More User Personalized Delivery Multi-options Better CRM Real Time Friendly Promotion Tracking Payment Data Loyalty Program Real Time Tracking Updates Personalized Promo Multi-options Payment
Slide 15: Cost Reset
Cost Reset
Slide 16: Cost Reset: Automation in the factory
Unilever Indonesia Strategy Update Cost Reset: Automation in the factory #1: Asset Lean #2: Oral Care Soap Bar Factory Factory Optimization 9 lines 6 lines ▪ Replacing slow-speed lines with high-speed lines ▪ Automation and Digitalization Oral Care Warehouse ▪ Internal logistic FG Oral Care and Soap
Slide 17: Stronger Brand and Portfolio
Stronger Brand and Portfolio
Slide 18: Portfolio expansion with launch of innovations
Unilever Indonesia Strategy Update Portfolio expansion with launch of innovations PC Innovation BW Innovation
Slide 19: Portfolio expansion with launch of innovations
Unilever Indonesia Strategy Update Portfolio expansion with launch of innovations HC Innovation Nutrition Innovation Ice Cream Innovation
Slide 20: And tapping into relevant growing segments
Unilever Indonesia Strategy Update And tapping into relevant growing segments Sun Care Post Wash +383 bps +95 bps +96 bps Increment in market share Increment in market share Increment in market share Continue our effort to strengthen our brand and portfolio expansion – more to do
Slide 21: Earnings Call: Vivek Agarwal, Chief Finance Officer
PT Unilever Indonesia Tbk Earnings Call Q3 2024 Vivek Agarwal Chief Finance Officer
Slide 22: Domestic Sales Growth by Division
Unilever 2024 Domestic Indonesia Sales Q3Growth 2024 Results by Division Home and Personal Care Food and Refreshment YTD Sep 2024 -11.9% | Q3 -20.8% YTD Sep 2024 -6.1% | Q3 -13.3%
Slide 23: Significant decline in Net Profit from sales deleverage and transformation costs
Unilever Indonesia Significant decline in Q3Net 2024 Profit Results from sales deleverage and transformation costs -62.0%
Slide 24: Lower Gross Margin from sales deleverage and transformation costs
Unilever Lower Gross Indonesia MarginQ3 from 2024 sales Results deleverage and transformation costs Underlying Price Growth Transformation (UPG) cost 1.9% -1.0% 50.5% 49.9% 49.5% -2.0% 48.4% -2.4% 45.5% -4.9% -5.2% Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024
Slide 25: Increase in advertising spend, shifting from traditional to digital media
Unilever Indonesia Increase in advertising Q3 2024 spend, Results shifting from traditional to digital media Advertising as % of Net Sales +2.3% in spending 10.8% 10.1% 9.0% 9.2% 8.7% Q3'23 Q4'23 Q1'24 Q2'24 Q3'24
Slide 26: Segment Highlights Q3 2024 Results
Unilever Indonesia Segment HighlightsQ3 2024 Results Highlights Home & Personal Care • Maintained leadership in all categories in Beauty & Personal Care • Launched of Pepsodent Gum Expert and Dove Deo Serum with initial results exceeding target. • Launched new variant Glow & Lovely body wash, focusi
Slide 27: Key Actions
Key Actions 1. Go-To-Market (GTM) Transformation. 2. Implement frequent replenishment and reduce inventory in trade. 3. Harmonizing price across channels. 4. Structurally improving gross margins through cost reset program. 5. Continue strengthening brands and portfolio. The above actions should star
Slide 28: Q&A Session
Q&A Session Benjie Yap (CEO) Vivek Agarwal (CFO)
PT Unilever Indonesia — Q3 2024 Earnings Presentation on 6ix