Pt Unilever Indonesia Tbk · IDX:UNVR
Pt Unilever Indonesia Tbk — Q3 2023 Earnings Presentation
23 slides from Pt Unilever Indonesia Tbk's earnings presentation, Oct 25, 2023
Slide 1: PT Unilever Indonesia Tbk Q3 2023 Result Earnings Call
PT Unilever Indonesia Tbk Q3 2023 Result Earnings Call October 25th, 2023
Slide 2: Safe Harbour Statement
Safe Harbour 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, goal, projects, should’ and similar
Slide 3: Ira Noviarti, President Director
Ira Noviarti President Director
Slide 4: Positive Q3'23 Performance Driven by Volume Growth
Positive Q3’23 Performance Driven by Volume Growth Domestic Sales Underlying Growth YoY Volume Growth +3.3% +4.3% Market Growth Q3’23: +1.1% Market Growth Q3’23: -0.6% Gross Margin Profit Before Tax Earning Per Share +483 bps +266 bps +21.0% Protecting margin while continue to Continue commitment fo
Slide 5: Household spending is stable while consumption is still softening
Household spending is stable compared to previous quarter while consumption is still softening Quarterly SPEND / Household Quarterly CONSUMPTION / Household YoY% change YoY% change 465,000 12.5 2.9% -3.0% 3.4% -1.0% 460,000 -3.4% 12.0 -4.5% 5.2% 455,000 450,000 11.5 445,000 11.0 3.9% 440,000 10.5 43
Slide 6: Volume grew ahead of market as per Nielsen; value growth impacted by HC and B&W
UNILEVER INDONESIA: Volume grew ahead of market as per Nielsen. Value growth impacted by HC and B&W Market Growth and ULI Growth YTD Sep 2023 Market Share YTD Sep’23 VALUE VOLUME 38.1% Market Market 37.4% Business Unit Growth ULI Growth Growth ULI Growth Personal Care 3.3% 4.9% -2.9% 0.1% Nutrition*
Slide 7: Unilever Indonesia: 2025 Strategic Thrusts
Excellent Execution of Five Strategic Priorities to deliver Competitive, Consistent, Profitable and Sustainable Growth UNILEVER INDONESIA: 2025 STRATEGIC THRUSTS Strengthen and Play Full Portfolio Build Execution Transformational unlock Core Powerhouse Capabilities Product superiority Drive Premiumi
Slide 8: Strengthen & Unlock Core
Strengthen & Unlock Core Offer Superior Stronger and Better More User, Benefits Communications More Usage Strong Media Investment Advertising as % of Net Sales 8.70% 8.0% 8.0% 7.3% 7.4% 7.1% 6.8% 5.5% 2021 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23
Slide 9: Bigger and Better Innovations with product superiority
Strengthen & Unlock Core: Bigger and Better Innovations with product superiority Pond’s Relaunch in Oct’23 Strengthen Anti Dandruff (AD) segment with Sunsilk AD launch and Clear Relaunch New innovations with superior and multiple benefits for consumers
Slide 10: Continue to drive premiumization agenda
REACHING UP Continue to drive premiumization agenda
Slide 11: Reaching Down: Lifebuoy Dishwash, Glow & Lovely
REACHING DOWN LIFEBUOY Dishwash GLOW & LOVELY • Good performance in term of share and • Glow and Lovely Bodywash performance exceeding penetration. target in term of market share. • World’s number #1 Selling Antibacterial Soap • #1 Face Moisturizer used in Indonesia (in volume) • 4x Stronger Brand A
Slide 12: Making Sustainable Living Common Place
Unilever Indonesia for Sustainable Future: Making Sustainable Living Common Place Plastic: Collect and Process Road to Net Zero: Target 2023: 100% (50k footprints) Manufacturing Decarbonization Waste Bank (WB) Reduced 88% of carbon emissions from 2015 - 2022 Target 2023: 25k tons Implementing Modula
Slide 13: 2023: Looking Ahead, View of Q4 2023
2023: Looking Ahead View of Q4 2023 Our focus on the fundamentals has started to show good result. Moving forward, we remain committed on strengthening competitiveness while protecting profitability. We will continue driving our strategic priorities.
Slide 14: Vivek Agarwal, Chief Financial Officer
Vivek Agarwal Chief Financial Officer
Slide 15: Financial Result Q3 2023
Financial Result Q3 2023 Sales Q3’23 Net Profit Q3’23 IDR 10.2 T (+1.4% YoY) Domestic: 9.9 T (+3.3%) IDR 1.4 T UPG -1.0% | UVG +4.3% | Vol Growth +7.5% (+21.0% YoY) Export: 0.3 T (-38.3%)* *Decline in export sales by 38% has very minimum impact to gross margin ( 0.1% only) Sales 9M’23 Net Profit 9M’
Slide 16: Price intervention to maintain competitiveness while protecting gross margin
Price intervention required to maintain our price competitiveness while at the same time protecting gross margin Domestic Price Growth 14.8% 10.0% 11.2% 9.9% 1.6% -1.0% -3.0% Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Maintaining our competitiveness in the market with price agility
Slide 17: Gross Margin was protected despite price adjustment
Gross Margin was protected despite price adjustment in the last one year Continue to deliver highest Gross Margin in the last 2 years 50.5% 50.5% 49.2% 48.7% 49.3% 47.6% 47.8% 45.6% 42.5% Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323
Slide 18: Strong Profit Before Tax and EPS while investing behind brands
Delivered strong Profit Before Tax and EPS while continued to invest competitively behind brands Profit Before Tax % Earning Per Share (in IDR) Continue reinvestment in Advertising for long- Strong EPS delivery in Q3’23, the highest term of our brands in the last 6 quarters 20.5%* 8 19.3% 18.1% 17.8
Slide 19: 2023 Domestic Sales Growth by Division
2023 Domestic Sales Growth by Division HOME & PERSONAL CARE FOODS & REFRESHMENT Q3 1.8% | YTD -3.9% Q3 6.1% | YTD 1.2% BEAUTY & PERSONAL FOODS & UNILEVER FOOD HOME CARE CARE REFRESHMENT SOLUTION Q3 2.7% | YTD -4.4% Q3 1.4% | YTD -3.6% Q3 6.4% | YTD 0.6% Q3 1.2% | YTD 10.3%
Slide 20: Beauty and Personal Care
Beauty and Personal Care Result Highlights Play Full Portfolio • Overall BPC sales is growing led by mid single digit UVG, driven by Oral Care, Hair Care and Deodorant. • Maintained market leadership in all categories: • Skin Cleansing Liquid YTD Sep’23 value share +447 bps, volume share +630 bps. •
Slide 21: Home Care
Home Care Result Highlights Superior Products to reach all consumer segments • Total Home Care sales is growing led by volume, driven by strong double-digit growth in Dishwash. • Strengthening competitiveness: • Home Care volume share YTD Sep’23 +48 bps. • Fabric Cleaning volume share YTD Sep’23 +32
Slide 22: Foods & Refreshment
Foods & Refreshment Result Highlights Continue Leading and Growing the Market • F&R solid performance in Q3’23 with double digit sales growth in Bango, Royco and Buavita, driven by volume. • Food YTD value share +94 bps and volume share +150 bps. • Tea started to gain value share +130 bps in seq L3M
Slide 23: Thank you
Thank you Ira Noviarti (President Director), Vivek Agarwal (CFO)
PT Unilever Indonesia — Q3 2023 Earnings Presentation on 6ix