Analysts Signal 30% Upside for Unilever Indonesia Following H1 Divestment Windfall

JAKARTA, Investortrust.id — PT Unilever Indonesia Tbk (UNVR), the local arm of global consumer goods giant Unilever, delivered a 37.8% year-on-year jump in first-half 2026 net profit to Rp 870 billion ($54.72 million), propelled by key asset divestments and resilient domestic volume growth.

Net sales from continuing operations reached Rp 16.9 trillion ($1.06 billion) during the first six months ended June 30, 2026, marking a 7.1% increase compared to the same period last year.

Unilever Indonesia’s strong volume-led growth signals a firm turnaround across Southeast Asia's largest retail market following recent portfolio restructurings. By trimming non-core divisions like Wall's ice cream and redirecting capital toward high-margin personal care segments, UNVR is defending its profitability against raw material inflation while offering investors an attractive dividend play.

Brokerage Sees 30% Upside Despite Target Trim

Investment bank BRI Danareksa Sekuritas reiterated its Buy recommendation for UNVR shares while adjusting its price target to Rp 2,200 per share. Compared to the stock's closing price of Rp 1,690 during Wednesday's mid-day session, the target implies a 30.2% upside potential.

The brokerage noted that UNVR currently trades at an attractive valuation of approximately 14.9 times forward 2026 price-to-earnings (P/E), roughly one standard deviation below its three-year historical average.

Top-line momentum accelerated in the second quarter of 2026 as revenues rose 11.6% year-on-year to Rp 10.2 trillion ($641.51 million), anchored by a 12.7% volume surge. The Home & Personal Care (HPC) unit spearheaded the acceleration with domestic volume expansion of 14.2%.

Divestments and Price Adjustments Support Profitability

The bottom-line spike was significantly aided by one-off gains from the divestment of the Wall’s ice cream business alongside the cessation of Sarwaging operations. Management committed to returning the entire net gain from the Wall's divestment to shareholders through dividend payouts for the 2026 financial year.

While H1 gross margin slipped to 46.6% due to high transformation costs and raw material pressures, analysts expect profitability to rebound in the third quarter as early June price hikes take full effect.

"The first half 2026 performance reflects the positive outcomes of our efforts to strengthen business fundamentals," said Benjie Yap, President Director of PT Unilever Indonesia Tbk, during the Annual General Meeting of Shareholders in Jakarta on Thursday, June 4, 2026. "We successfully recorded positive growth in both sales and profits, supported by strong volume growth, which reflects improving execution in the market."

Portfolio Realignment Remains on Track

Unilever Indonesia continues to advance its planned separation of the Foods & Refreshment segment, including proposed brand transactions involving Bango and Royco with McCormick.

Transformation expenses are projected to drop 30% to 40% across full-year 2026, tapering off significantly by the fourth quarter to further alleviate cost pressures.

Brokerage analysts project full-year 2026 revenue and net profit to grow 5.8% and 12.9% respectively, though key risks include prolonged El Niño weather patterns, supply chain disruptions from Middle Eastern geopolitical tensions, and potential dips in consumer demand.