Pt Unilever Indonesia Tbk · IDX:UNVR
Pt Unilever Indonesia Tbk — Q2 2023 Earnings Presentation
26 slides from Pt Unilever Indonesia Tbk's earnings presentation, Jul 24, 2023
Slide 1: PT Unilever Indonesia Tbk Q2 2023 Result Earnings Call
PT Unilever Indonesia Tbk Q2 2023 Result Earnings Call July 24th, 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: Household spend and consumption
FMCG household consumption is still within the negative territory due to inflation with spend/household is driven by the price increase across consumer segments SPEND / Household CONSUMPTION / Household YoY% change YoY% change 4.3 4.2 Q2 22 Q3 22 Q4 22 Q1 23 L3M 3.5 2.6 0.6 -2.3 -2.8 -2.6 -3.2 -3.6
Slide 5: Downtrading continues in middle and lower segments
Downtrading continues and more obvious in the middle and lower segment of consumers Rolling Quarter vs YA Contribution to Total Indonesia FMCG Grocery Spend Change 40,000 11.9% 9.9% 30,000 8.3% 7.8% 6.5% 6.5% 5.8% 5.5% 5.6% Spend Change – Billions Rp 20,000 Inflation% 10,000 0 -10,000 -20,000 Jan-22
Slide 6: Volume grew ahead of market as per Nielsen
UNILEVER INDONESIA: Volume grew ahead of market as per Nielsen. Value growth impacted by B&W Market Growth and ULI Growth YTD June 2023 VALUE VOLUME Business Unit Market Growth ULI Growth Market Growth ULI Growth Personal Care 4.6% 6.7% -4.0% -0.5% Nutrition 4.8% 3.6% 0.9% 1.2% Home Care 1.3% 0.3% -
Slide 7: Protecting volume for long-term growth of the business
Continue gaining more volume in YTD June 2023, indicating more users / usage towards our products Protecting VOLUME for long-term growth of the business Quarterly Market Share Jun’23 Market Share YTD Jun’23 38.3% 37.9% 38.0% 38.0% 37.8% 38.1% 37.2% 37.5% 31.5% 31.3% 31.2% 30.9% 30.9% 31.0% 30.8% 30.
Slide 8: Gross Margin was protected despite price adjustment
Gross Margin was protected despite price adjustment in the last four quarters Highest Gross Margin in the last eight quarters 50.5% 49.1% 49.2% 48.7% 49.3% 47.6% 47.8% 45.6% 42.5% Q221 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223
Slide 9: 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 2023 term of our brands 20.5%* 8 19.3% 17.8% 18.1% 17.4% 17.3% 17.1% 15.1% 13.2%* 5 35
Slide 10: Financial Result H1 2023
Financial Result H1 2023 Sales H1’23 Net Profit H1’23 IDR 20.3 T (-5.5% YoY) IDR 2.8 T Domestic: -4.7% (-19.6% YoY*) UPG -0.6% | UVG -4.2% | Vol Growth -1.2% Export: -23.1% *exclude one-off Central Service Fee adjustment in Q1’22: -12% Sales Q2’23 Net Profit Q2’23 IDR 9.7 T (-8.8% YoY) IDR 1.4 T Dom
Slide 11: 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 12: 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 13: 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 8.0% 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
Slide 14: Improving penetration and recovering proposition
Moreover, we manage to improve penetration and recovering proposition in the market Our brand portfolio has recruited back more Recovering Proposition in the market household buyers Stable or Gaining Brand Power ULI Relative Penetration Movement Turnover-Base Turnover Base Sig. Declining Stable to G
Slide 15: Reaching Up: premium segment contribution above 27%
REACHING UP Premium segment contribution to domestic sales has increased to > 27% in Q2’23
Slide 16: Reaching Down: Lifebuoy, Dishwash, Glow & Lovely
REACHING DOWN LIFEBUOY Dishwash GLOW & LOVELY • Good performance in term of share and • Glow and Lovely Bodywash showed good penetration. performance in term of share and penetration. • World’s number #1 Selling Antibacterial Soap • #1 Face Moisturizer used in Indonesia (in volume) • 4x Stronger Bra
Slide 17: Cost Leadership: Maintain cost and savings discipline
Cost Leadership: Maintain cost and savings discipline Strong Saving Initiatives as the key driver of margin improvement SCC Initiatives • Commodity price management with Global Procurement support. Supply Chain Cost • Factory Automation and Cost Benchmarking. • Pack Optimization. Non-SCC Initiatives
Slide 18: 2023: Looking Ahead, View of H2 2023
2023: Looking Ahead View of H2 2023 Our focus on fixing all the fundamentals has resulted to competitiveness in volume share. Value share was still slightly behind due to the price reset that we did over a very high base of pricing in Q2 last year. Coming into H2, we are confident with the outlook o
Slide 19: Vivek Agarwal, Chief Financial Officer
Vivek Agarwal Chief Financial Officer
Slide 20: 2023 Domestic Sales Growth by Division
2023 Domestic Sales Growth by Division HOME & PERSONAL CARE FOODS & REFRESHMENT H1 -6.4% | Q2 -9.3% H1 -1.3% | Q2 -6.2% BEAUTY & PERSONAL FOODS & UNILEVER FOOD HOME CARE CARE REFRESHMENT SOLUTION H1 -7.4% | Q2 -8.7% H1 -6.0% | Q2 -9.6% H1 -2.3% | Q2 -7.6% H1 15.0% | Q2 17.2%
Slide 21: Price intervention to maintain price competitiveness
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% -3.0% Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Maintaining our competitiveness in the market with price agility
Slide 22: Domestic Volume almost flat
Domestic Volume almost flat UPG -3.0% USG Q2 -8.3% E-Com impact -2.5% UVG -5.5% Mix impact –2.4% Volume Growth -0.6% USG: Underlying Sales Growth refers to increase in sales for the period, excluding any changes in sales resulting from acquisitions and disposals UPG: Underlying Price Growth refers t
Slide 23: Beauty and Personal Care
Beauty and Personal Care Result Highlights Play Full Portfolio • Strong Personal Care performance YTD Jun’23: value share +89 bps, volume share +147 bps. • Premium segment contributed more than 27% domestic sales supported by various innovation. • Skin Cleansing: Significant market share progression
Slide 24: Home Care
Home Care Result Highlights Superior Products to reach all consumer segments • Well progressing in competitiveness with Total Home Care gaining volume share +86 bps in YTD Jun’23. • Dishwash: liquid continued to perform better with value share maintained and volume share +48 bps. • Good performance
Slide 25: Foods & Refreshment Result Highlights
Foods & Refreshment Result Highlights Win in Festive Season with Stronger Communication and Massive Activations Foods • Competitiveness in Bango and Royco continued: value share +59 bps and volume share +99 bps in YTD Jun’23, supported by strong communication and activation during Lebaran festive. I
Slide 26: Thank you
Thank you Ira Noviarti (President Director), Vivek Agarwal (CFO)
PT Unilever Indonesia — Q2 2023 Earnings Presentation on 6ix