Unilever Indonesia Sets Rp 2 Trillion Share Buyback Amid Profit Decline
Main Takeaways
|
JAKARTA, investortrust.id – PT Unilever Indonesia Tbk, or UNVR, has announced a Rp 2 trillion ($125 million) share buyback initiative as part of efforts to support its stock amid market volatility. The program will commence on Thursday, July 31, 2025, and run for three months.
In a statement submitted to the Indonesia Stock Exchange, the company emphasized that the buyback will not impact its revenue, operational activities, or financial standing. The initiative will be funded entirely from internal cash reserves, with no external borrowing involved.
“Management believes the buyback will not have a material impact on the company’s operations, financial performance, capital position, or liquidity,” the statement read. “Unilever maintains a healthy cash flow and sufficient liquidity to continue its business activities.”
The decision comes as Unilever Indonesia reports weaker financial results in the first half of 2025. Net profit declined to Rp 2.15 trillion ($134 million), down from Rp 2.46 trillion in the same period last year. Revenue dropped to Rp 18.20 trillion from Rp 19.04 trillion, while operating profit fell to Rp 2.89 trillion from Rp 3.19 trillion.
The decline in earnings was also attributed to a surge in financial expenses, which more than doubled from Rp 33.71 billion to Rp 77.47 billion. Consequently, basic earnings per share slipped from Rp 65 to Rp 57.
Despite the downturn, the company’s move to repurchase shares signals confidence in its long-term fundamentals and capital strength. The buyback could potentially improve earnings per share by reducing the number of outstanding shares and bolster investor sentiment during a period of market uncertainty.
Track stock buybacks and earnings performance like a pro — get exclusive insights with InvestingPro. Special discounts available for Investortrust readers. Click here to unlock your offer.