Unilever Indonesia Reaffirms 100% Dividend Payout, Strengthens Exports and Workforce Transformation

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TANGERANG, Investortrust.id — Consumer goods giant PT Unilever Indonesia Tbk, or UNVR, reaffirms its commitment to distribute 100 percent of its 2025 net profit as dividends to shareholders, underscoring confidence in its long-term value strategy despite weaker domestic sales.

Unilever Indonesia Chief Financial Officer Neeraj Lal said the company remains firm on maintaining its full-dividend policy. “We are committed to returning 100% of profits to shareholders and will continue to pay dividends next year, just as we have this year,” he stated during a public presentation at Unilever’s headquarters in BSD, Tangerang, on Wednesday, Oct 15, 2025.

The company reported a 12.6 percent decline in first-half net profit to Rp 2.2 trillion, with total sales falling 4.4 percent year on year to Rp 18.2 trillion. However, brands representing 55 percent of Unilever’s product portfolio continued to grow, reflecting resilient consumer demand and the company’s brand strength.

President Director Benjie Yap emphasized that the company’s fundamentals remained robust amid market challenges. “The decisive actions and strategic initiatives we have taken to navigate operational challenges are now delivering tangible results,” he said.

Benjie added that management expects earnings to rebound in the third quarter of 2025. “We anticipate growth resuming in the third quarter, and results will be announced next week,” Neeraj added.

Last year, the company distributed 99.7 percent of its 2024 net income—equivalent to Rp 3.35 trillion or Rp 88 per share—comprising an interim dividend of Rp 41 per share and a final dividend of Rp 47 per share. Benjie reaffirmed that maintaining a high dividend ratio aligns with Unilever’s goal of delivering sustainable shareholder value.

“We believe that preserving a strong dividend policy, aligned with our long-term financial performance, is key to creating enduring value,” he said.

Meanwhile, Unilever’s export sales grew 7.7 percent year on year to Rp 578.79 billion, offsetting a 4.8 percent contraction in domestic sales to Rp 17.62 trillion during the same period. Export revenue came mainly from personal care, food, and health products shipped to other Asian markets, led by Singapore, the Philippines, Malaysia, and Thailand.

“Exports have shown solid growth, especially in ice cream and food products. However, margins remain thin due to intense competition and local market mechanisms in destination countries,” Neeraj explained.

The company recorded a 1.4 percent increase in underlying price growth but a 6.1 percent decline in underlying volume, reflecting price pressure in the domestic market. The gross margin narrowed by 161 basis points as competition intensified across key categories.

Organizational Transformation

Alongside its financial commitments, Unilever is pursuing an organizational transformation. The company appointed Hendri Widiarta as its new Human Resources Director, succeeding Willy Saelan, who retired after three decades of service. The appointment was approved at an Extraordinary General Meeting of Shareholders on Wednesday.

“With Hendri joining our board, we will continue to strengthen human-capital capabilities and drive the next phase of our transformation,” Benjie said. Hendri, who has 28 years of experience across industries, previously served as Senior Vice President Human Resources for Asia-Pacific at B. Braun, a German medical-device and pharmaceutical group operating in more than 60 countries.

Earlier in his career, Hendri worked with SC Johnson, RGE Group (APRIL and Pacific Oil & Gas), and PT Mitra Adiperkasa Tbk (MAPI). “With his extensive experience, we are confident Hendri will contribute significantly to reinforcing our culture of excellence, developing future talent, and supporting our strategic ambitions,” Benjie added.

Hendri expressed pride in joining Unilever, saying, “I am committed to enhancing capabilities, accelerating performance, and creating sustainable value for employees, consumers, and stakeholders.”

The company reduced its workforce from 4,548 to 4,068 employees in the first half of 2025, equivalent to 480 positions, as part of a streamlining effort to improve operational efficiency. Employee expenses fell from Rp 1.27 trillion to Rp 967.53 billion, while marketing, production, and administrative costs also declined.

Benjie said the measures are consistent with Unilever’s long-term transformation to strengthen competitiveness and sustain profitability amid changing consumer behavior.

Source: InvestingPro. Data are current as of the time of publication.

Below Fair Value

At Rp 1,835 per share, Unilever Indonesia (UNVR) is currently trading below its fair value estimate of Rp 2,396, suggesting an upside potential of 30.6% based on InvestingPro’s valuation models. The stock’s 52-week range spans from Rp 985 to Rp 2,440, with the current price sitting near the lower end of the fair-value spectrum.

Consensus from 20 equity analysts places the average target at Rp 1,687, with projections ranging between Rp 1,200 and Rp 2,100, reflecting a cautious yet constructive outlook amid soft consumer spending.

Meanwhile, InvestingPro’s proprietary valuation models, derived from 14 different methodologies, estimate a market range between Rp 1,917 and Rp 3,486, reinforcing the view that the stock remains undervalued.

The uncertainty level is rated “low,” indicating high confidence in the earnings and cash-flow assumptions used in the fair-value calculation. Despite near-term headwinds in sales volume and margin compression, UNVR’s strong profitability, resilient brand portfolio, and consistent dividend payout continue to anchor its long-term valuation.

According to InvestingPro’s financial health metrics, Unilever scores highest in profitability health (4/5) but remains moderate in price momentum (2/5) and growth health (1/5), implying limited near-term catalysts but solid fundamental support.

For income-focused investors, the company’s high dividend payout ratio and dominant market share in household and personal-care segments strengthen the case for re-rating once domestic consumption stabilizes.