UNVR – 4Q24 Net Profit Below Ours and Cons

BCAS: UNVR – 4Q24 Net Profit Below Ours and Cons

•⁠ 4Q24 net profit at IDR379bn (-30.1% QoQ; -46.5% YoY), while FY24 net profit stood at IDR3.39tn (-29.4% YoY); below ours and cons at 90%/91%. Lower profitability is a result of sales deleverage and higher transformation costs. There is also margin impact from stock reduction of -1.3%. Advertising as a % of Net Sales also increased to 8.8%.
•⁠ ⁠4Q24 Revenue at IDR7.7tn (-7.8% QoQ; -4.7% YoY), while FY revenue at IDR35.1tn (-9.0% YoY). For FY24, domestic sales saw -8.7% growth (UPG -3.6% | UVG -5.2%) and exports at –17.7% growth. HPC saw a wider drop with sales decreasing by -10.8%, while F&R decreased by -5.6%.
•⁠ ⁠We think that challenging situation persists for the Co. along with soft as demand. Sales are still impacted by actions to address operational issues and market shares remain below YTD Oct-23 levels. With ongoing transformation strategies, the Co. made good progress on stock reduction and expects to see better results starting in 2H25. Our last call is HOLD at IDR1,900/sh.

 

MACROECONOMY
US PPI Increased in Jan-25

Producer Prices in the US increased to 147.72 points in Jan-25 (vs Dec-24; 147.13 points). Producer Prices in the US averaged 118.18 points from 2009 until 2025, reaching an all time high of 147.72 points in Jan-25 and a record low of 100.20 points in Nov-09.

 

COMPANY

Erajaya (ERAA) Expanded into Beverage Business Through Joint Venture
ERAA, via its subsidiary PT Era Boga Nusantara, established a JV, PT Chagee Era Indonesia (CEI), with Singapore-based Tea Explorer Pte. Ltd. to operate the Chagee beverage brand in Indonesia. The JV had an investment value of IDR 120 bn, with Era Boga Nusantara holding a 40% stake and Tea Explorer 60%. In 3Q24, ERAA's net profit surged 69.8% YoY to IDR 852.94 bn, driven by a 13.5% YoY rise in net sales to IDR 48.6 tn. Mobile phones and tablets contributed IDR 39.42 tn (+14%), while computers and electronics added IDR 1.94 tn (+64%).