Unilever Indonesia Profit Drops 10.5% amid Israel Boycott Issues
Translator
Editor
8 February 2024 09:02 WIB
TEMPO.CO, Jakarta - PT Unilever Indonesia Tbk. (IDX: UNVR) recorded a net profit of Rp4.8 trillion in 2023, a 10.5 percent decline from the year before. President Director Benjie Yap blames geopolitical tensions as being a contributing factor to the profit slump.
Benjie said that as of Q3 last year the company was still posting business growth from the 3.3-percent increase in domestic sales that was supported by a 4.3 percent growth in positive underlying volume.
"Even though that positive momentum continued into October 2023, in November and December, the impact of a shift in sentiment that was caused by the geopolitical situation put our year-end domestic sales at minus 5.2 percent," Benjie said in the company's financial performance report 2023 on Wednesday, February 7.
Benjie said the negative sentiment escalated after the Indonesian Ulema Council (MUI) issued a fatwa in November regarding support for the Palestinian cause. MUI recommends Muslims avoid transactions with products affiliated with Israel or supporting Israeli aggression in Palestine.
The situation was exacerbated by the spread of hoaxes and disinformation. Benjie said Unilever has made a number of efforts to quell the negative sentiment, such as trying to clarify misleading information with the help of a number of public figures.
"Our consistent efforts to navigate through the crisis began to show some results in January 2024," said Benjie.
Benjie ensured that the company is committed to integrity, and humanitarian issues, and will provide the highest quality products that are made responsibly.
"I would like to remind you that Unilever Indonesia has been serving consumers for more than 90 years. Our products are made, distributed, and sold by Indonesians. They also have halal certificates from the MUI and the Ministry of Religious Affairs," he remarked.
YOHANES MAHARSO | AMELIA RAHIMA
Editor's Choice: Unilever, Indofood, and Mayora Top Three Plastic Polluting Firms: DCA
Click here to get the latest news updates from Tempo on Google News
