JAKARTA (TheInsiderStories) - The consumer producer, PT Unilever Indonesia Tbk (IDX: UNVR), said it will open up for an opportunities to acquire new brands to complement its business portfolio after sold part of its unit in this year. To support the planned, the issuer has prepared capital expenditure 1 percent of the sales proceeds.
“We always see opportunities if there is to enrich Unilever’ products. We will always make the right investment,” said finance director of the company, Arif Hudaya, in a virtual public expose on Wednesday (11/04).
Other director, Ira Noviarti added, the manufacturer also continues to innovate from Unilever‘ brands. Until September, the company has developed 63 new product innovations.
in July, its parent, global consumer goods producer, Unilever Plc (AMS: UNA) said will retained the tea businesses in Indonesia and India, following a strategic review that began early of this year. The review has resulted the tea business with valued of EUR2 billion (US$1.72 billion) will be separated into an independent entity.
The Anglo-dutch company is expected to put the unit up for sale and reportedly has received interest from some of the top buyout firms, including Advent International, Bain Capital, KKR, Blackstone and others. In June, Unilever announced to become one single legal entity in the United Kingdom by buying things with equity or de-merging parts of the business.
“From the start of the COVID-19 crisis, we have been guided by clear priorities in line with our multi-stakeholder business model to protect our people, safeguard supply, respond to new patterns of consumer demand, preserve cash and support our communities,” CEO Alan Jope said in a statement released on July 23.
The company’ focus for the rest of 2020, he asserted, will continue to be volume led competitive growth and creates an absolute profit and cash delivery. The spread of virus combined with the lockdowns and restrictions that have been implemented in many countries, has led to significant changes in the operating environment in the Unilever markets.
Even there are a challenged in global businesses, the operating profit of Unilever was rose 2.8 percent to EUR5.1 billion, excluding a negative impact from currency of 3.2 percent. In the second half of the year, he expect to see higher brand and marketing investment, as lockdowns ease and product innovations tailored to the new environment.
To reached those targets, said Lope, Unilever delivered free cash flow of EUR2.9 billion, an increase of EUR1.3 billion driven by favorable working capital movements, reduced capital expenditure and lower cash tax paid.
While, Unilever Indonesia reported, in the third quarter of 2020, the net profit dropped 1.27 percent from Rp5.51 trillion (US$374.83 million) to Rp5.44 trillion caused the impact of the COVID-19 pandemic. But the revenues slightly rose 0.31 percent to Rp32.46 from Rp32.36 trillion in the same period of last year.
US$1: EUR0.86, Rp14,700
Written by Editorial Staff, Email: theinsiderstories@gmail.com
