Trimmed FY24E/FY25F Figures as Cautious Outlook Remains
Key Takeaways :
▪️ UNVR reported revenue of IDR9.0 tn in 2Q24, or went down by -11.1% QoQ/-7.5% YoY. The decline in revenue dragged down 2Q24 net profit to IDR1.0 tn (-29.7% QoQ/-24.8% YoY).
▪️ UNVR recorded underlying volume growth (UVG) in 2Q24 at -1.8%. This wiped out the positive momentum from 1Q24, where UVG was +0.2%. Besides, UNVR's volume market share gained modestly, increasing by only 0.9% to 29.1% in Mar-May’24.
▪️ Given the above metrics which were less than satisfactory, we see the potential for continued increases in advertising costs going forward. On the flip side, we also observed that several of UNVR's flagship brands have lost some of their prominence.
▪️ We have lowered our revenue projections for FY24E/FY25F by -3.9%/-7.4% to IDR37.6 tn/IDR37.5 tn. We also revised our net profit projections for FY24E/25F down by -11.7%/17.6% to IDR4.3 tn/IDR4.2 tn.
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