UNVR Oct2025

UNVR

Contact our analyst Eka

18% Upside, Buy
27th October 2025
Price Rp 2710
Target price Rp 3200

Recovery in volume and reset pricing

Unilever Indonesia (UNVR) recorded strong topline recovery in Q3 2025, with total sales rising +12.4% YoY and +7.7% QoQ to IDR 9.4 trillion. For 9M 2025, sales reached IDR 27.6 trillion (+0.7% YoY), reflecting the success of UNVR’s year-long portfolio reset, which helped restore volume growth and stabilize pricing.
- Unit Price Growth (UPG): +2.4% YoY in Q3 2025 and +1.8% YoY in 9M 2025, reflecting effective price discipline.
- Unit Volume Growth (UVG): +10.1% YoY in Q3 2025 after prior weakness; 9M 2025 still slightly down -1.1% YoY, showing early recovery in consumer demand across core categories.
Domestic sales rebounded +12.7% YoY and +8.0% QoQ to IDR 9.16 trillion, while export sales slipped -2.9% QoQ, but remained slightly positive (+0.1% YoY) at IDR 248.6 billion.
Market share has stabilized post-boycott (2023), with value share at 33.0% (vs. 33.9% Dec 2023) and volume share at 27.0% (vs. 27.2% Dec 2023).Volume and pricing improvements are expected to continue into Q4 2025.

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Segment Performance

Food & Refreshment (FR): Sales up +8.5% YoY and +5.4% QoQ to IDR 3.32 trillion, driven by volume growth of +8.5% and price growth of +0.9%. GPM rose to 44%, and OPM expanded to 19%.
Home & Personal Care (HPC): Sales up +14.9% YoY and +8.9% QoQ to IDR 6.08 trillion, supported by UVG +11.4% and UPG +3.3%. GPM improved to 52%, with OPM rising to 24%.

Ice Cream Separation and Dividend Policy

The ice cream business spin-off remains on track for completion in 2025. As of 9M 2025, the segment contributed IDR 2.8 trillion (10.3% of total sales) and IDR 270 billion in net profit (8.1% of group earnings).
Management reaffirmed a 100% dividend payout ratio (DPR) for FY2025 and plans to add special dividends from the ice cream sale proceeds.

Q3 2025 Results: Margin Expansion Continues

Net income rose +117.2% YoY and +28.5% QoQ to IDR 1.18 trillion, with NPM improving to 12.5% (vs. 6.5%).Gross profit grew +21.4% YoY to IDR 4.6 trillion, lifting GPM to 49.2% (vs. 45.5%) despite a +4.8% YoY increase in cost of sales, largely due to +20.7% higher raw material costs, especially from CPO.
Operating margin (OPM) improved to 16.5% (vs. 8.6%), supported by tighter cost discipline:
Advertising & market research expenses: 8.6% of sales in Q3, 8.8% in 9M (vs. 9.7% in 9M 2024).

Valuation:

We upgrade UNVR to BUY with a Target Price of IDR 3,200/share, offering +18% upside, based on a forward P/E of 30x.
The transformation program continues to yield results, with volume recovery, pricing stability, and cost control driving sustainable margin expansion through FY2025.

Previously

UNVR Aug2025