Unilever: personal care products driving Indonesian growth

Posted: August 6, 2012 at 9:13 pm


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Indonesia's ( IDX , quote ) largest producer of home and personal care products, Unilever Indonesia is reporting robust revenue growth following an increase in spending on market research and successful advertising campaigns.

The subsidiary of Anglo-Dutch conglomerate Unilever ( UL , quote ), Unilever Indonesia is reporting the firm's revenue hit $1.2 billion during the first half of 2012, an increase of 17% over the same period last year. Net income reached $247 million during the first half of the year, up 13% year-over-year.

"The growth in revenue was the result of innovation of our products, both home and personal care as well as food and ice cream segments," Unilever director Sancoyo Antarikso told the Jakarta Post .

With Unilever's 27 brands of home and personal care products ubiquitousthroughout the archipelago, Indonesians are quite familiar with the company's wares. For many, they are the only name-brand option. For Indonesians who were already loyal Unilever customers, an advertising campaign that encouraged customers to use Unilever body lotion up to three times a day further boosted sales.

According to Andrew Argado of PT eTrading Securities, Unilever's performance was unsurprising. "It is in line with the expectation of growth between 15% to 20%. The company has a large presence, therefore, a 16% increase in the range is okay as it means trillions of rupiah," Andrew said.

Unilever's growth in its home and personal care products however, which comprised 73% of its Indonesian sales last year, may be plateauing .

"I think the company also sees that the home and personal care business has entered the maturity point. Population growth, advertising and an increase in selling prices will drive this segment's growth," Andrew said.

Consequently, Unilever may expand its food and beverage business in Indonesia as it looks to continue to grow. Ahead of Eid celebrations later this month to mark the end of Ramadan, Muslims are expected to buy more food and beverage products for family festivities.

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Unilever: personal care products driving Indonesian growth

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August 6th, 2012 at 9:13 pm




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