PT Unilever Indonesia Tbk (IDX: UNVR) do a stock split to make stock more affordable for retail investors, wrote the company on Saturday (09/28) - Photo by the Company

JAKARTA (TheInsiderStories) – Indonesia’s biggest consumer goods company Unilever Indonesia booked Rp 7 trillion (approx. US$ $515 million) in net profit over full-year 2017, up 9.6 percent year-on-year (y/y) from net profit in the preceding year.

The company’s net profit growth was supported by a 2.9 per cent (y/y) increase in net sales to Rp41.2 trillion (approx $3 billion).

Sancoyo Antarikso, Director and Corporate Secretary at Unilever Indonesia, explained that the company’s earnings last year were undermined by bleak household consumption growth across Indonesia.

According to Indonesia Statistics, Indonesia’s household consumption growth, recorded at 4.95 percent (y/y) in FY-2017, was partly to blame for the nation’s sluggish overall economic growth.

However, he added that despite this challenging environment the company’s strong strategies made the company able to adjust to the challenging environment and to safeguard solid corporate earnings.

“Our business challenge in 2017 was the low level of household consumption, which has suppressed the growth of the consumer goods industry in Indonesia,” said Antarikso.

Part of the Unilever Indonesia’s strategies last year was to understand the needs of the Indonesian consumer and to implement efficiency-oriented policies in all of the company’s business segments.

Unilever Indonesia’s corporate earnings are expected to improve in 2018. This assumption is based on expectations of strengthening household consumption in Indonesia, which is partly supported by the local elections that are scheduled for mid-2018.