UNVR Aug2025

UNVR

Contact our analyst Eka

6.7% Upside, HOLD
6th August 2025
Price Rp 1795
Target price Rp 1915

Expecting growth in 2H2025

UNVR’s total sales declined -2.5% YoY and -7.7% QoQ to IDR 8.74 trillion in Q2 2025. For 1H 2025, total sales were down -4.4% YoY to IDR 18.2 trillion, primarily due to festive seasonality shifting to Q1 and price reset actions.
- Unit Price Growth (UPG): +1.6% YoY
- Unit Volume Growth (UVG): +4.2% YoY
Domestic sales fell -2.6% YoY and -7.2% QoQ to IDR 8.48 trillion, while export sales declined -20.6% QoQ, though still up +2.1% YoY to IDR 256.1 billion.
UNVR highlighted several transformation milestones: • Inventory stock reduction: -30% from Dec 2023 to Jun 2025
- Price stability: +24% improvement from Q3 2024 to Jun 2025
- Service level improvement: +26%
- Direct distribution coverage: +12% from Q4 2024 to Jun 2025
These improvements position UNVR for a recovery starting in Q3 2025.

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Segment Performance: Food and refreshment Leads the Way

Food & Refreshment (FR):Sales rose +0.9% YoY but fell -12.6% QoQ to IDR 3.15 trillion. GPM improved to 46% (from 44%), and OPM to 18% (from 17%).
Home & Personal Care (HPC):Sales declined -4.3% YoY and -4.9% QoQ to IDR 5.58 trillion. GPM dropped to 49% (from 52%), and OPM to 21%.

Q2 2025 Results: Margin Pressure Continues

Net income declined -9.8% YoY and -25.8% QoQ to IDR 918 billion, mainly due to higher input costs, especially CPO.
- Gross profit: -5.3% YoY / -7.9% QoQ to IDR 4.19 trillion
- Gross profit margin (GPM): 48% (down from 49.5%)
- Operating profit margin (OPM): 10.5% (down from 11.4%)
Advertising & market research spending stood at 8.6% of sales in Q2 and 8.9% in 1H, slightly higher than FY2024’s 8.8%, as part of UNVR’s brand investment strategy.
UNVR also announced a buyback program of IDR 2 trillion, to be funded from internal cash, aimed at enhancing long-term shareholder value.

Valuation: HOLD TP IDR 1,915

We continue to expect long-term improvements from UNVR’s transformation strategy. However, transition costs, higher raw material prices (particularly CPO), and forex volatility remain short-term risks.
We maintain a HOLD recommendation with a revised target price of IDR 1,915, offering +6.7% upside and implying a forward PE of 18x.

Previously

UNVR May2025