The Indonesian arm of personal care giant Unilever has reported a net profit decline of 1.2 percent in 2015 to Rp 5.85 trillion, due to succumbing to the economic slowdown last year.
The news came despite the company witnessing a 5.7 percent growth in sales due to the weakening rupiah creating problems that resulted in a fall in exports. Indeed, even the sale of the SHE brand in March 2015 could not offset the financial problems for the company.
Unilever Indonesia spokesman Sancoyo Antarikso said, “Despite the company recording 6.6 percent domestic sales growth in 2015, total sales growth was only 5.7 percent because of a fall in exports.”
The company reported an increased profit margin from 49.85 percent to 51.11 percent, however, operating profit margin fell from 23.22 percent in 2014 to 21.76 percent in 2015.
Growing operational costs were suggested for the fall, with Antarikso stating, “It is a big challenge for the company because 55 percent of our cost comes from currency risk.”