UNVR Jul2026

UNVR

Contact our analyst Eka

21% Upside, Buy
3rd July 2026
Price Rp 1760
Target price Rp 2135

Business Reset supports Positive Sales Momentum

PT Unilever Indonesia Tbk (UNVR) delivered another quarter of positive sales growth in 1Q26, with revenue increasing 2.8% YoY to IDR8.44 trillion. The improvement reflects the continued success of the company’s extensive business reset program, which has supported both volume and pricing performance.
Unit Price Growth (UPG) increased 1.4% YoY, slightly higher than the 1.3% recorded in 1Q25, reflecting continued pricing stability.
Unit Volume Growth (UVG) improved to 2.0% YoY, a significant recovery from the 5.7% decline recorded in 1Q25. The improvement was supported by sustained momentum in both the General Trade and Modern Trade channels, together with strong growth from the Health & Beauty and Digital Commerce businesses.
Domestic sales increased 3.5% YoY to IDR8.21 trillion, while export sales declined 17.1% YoY to IDR222.7 billion.
Following the business portfolio restructuring, market share has remained broadly stable. UNVR’s value market share stood at 30.6% in 1Q26, compared with 30.9% in 2H25, while volume market share improved slightly to 26.3% from 26.1%.
Looking ahead, we expect both volume and pricing improvements to continue throughout 2026 as the company’s business reset program gains further traction.

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Segment Performance: Recovery Continues Across Both Business Segments

Following the completion of the SariWangi Tea divestment in 1Q26, the Food & Refreshment (F&R) segment recorded sales growth of 1.8% YoY to IDR2.39 trillion, supported by a 2.1% increase in volume despite a slight 0.2% decline in pricing. Gross profit margin improved to 47%, although operating profit margin eased to 15%.
The Home & Personal Care (HPC) segment remained the main growth driver, with revenue increasing 3.3% YoY to IDR6.05 trillion. Growth was supported by UVG of 2.2%, compared with a 9.3% decline in the prior year, while UPG reached 2.0%. Gross margin softened slightly to 49% from 50%, but operating margin improved meaningfully to 27% from 23%, reflecting better operating efficiency.

Q1 2026: margin remains resilient

Core profit from continuing operations surged 133% YoY and increased 14.1% QoQ to IDR1.25 trillion in 1Q26. Net profit margin improved to 14.8%, compared with 13.4% in the corresponding period last year.
Cost of sales increased 3.2% YoY to IDR4.37 trillion, mainly reflecting higher palm oil prices and rupiah depreciation. Nevertheless, gross profit still increased 2.4% YoY to IDR4.07 trillion, with gross profit margin remaining broadly stable at 48.2%, compared with 48.4% a year earlier.
Operating profit rose 9.0% YoY to IDR1.56 trillion, while operating profit margin improved to 18.6% from 17.5%, supported by disciplined SG&A management.
Advertising and market research expenses declined 29% YoY, while promotional expenses fell 1.9% YoY, reducing the advertising and promotion-to-sales ratio to 10.9%, compared with 13.9% in 1Q25.
Management expects cost headwinds related to the Middle East geopolitical situation to become more visible during 2H26, mainly through higher commodity and logistics costs.

Valuation: Maintain BUY TP IDR 2,135

We continue to see long-term benefits from UNVR’s transformation strategy and business reset program.
Supported by improving sales momentum, volume recovery, and stronger profitability, we maintain our BUY recommendation with a revised 12-month target price of IDR2,135, implying 21% upside and a forward P/E of 23x.

Previously

UNVR FEB2026