Unilever profit up 33% on higher sales

Unilever profit up 33% on higher sales

The Jakarta Post, Jakarta

Publicly listed PT Unilever Indonesia, a local unit of giant
consumer goods company Unilever NV, reported on Friday that
audited net profit surged by 33 percent last year on higher
sales, amid strong consumer purchasing power.

In its financial statement, the company said that profit rose
to Rp 1.29 trillion (US$151 million), or Rp 170 per share last
year, from Rp 978 billion, or Rp 128 per share, in 2002.

The company booked an increase of Rp 8.12 trillion in sales
last year as against Rp 7.01 trillion in 2002. The company, which
produces popular Pepsodent toothpaste and Rinso detergent,
recorded an operating profit of Rp 1.74 trillion, up from Rp 1.32
trillion.

Analysts said the surprisingly low record of inflation during
2003 had helped lift the company's sales, as it had boosted
people's purchasing power, which, in turn, maintained strong
domestic consumption.

Consumption has become the country's main economic growth
engine since the late-1997 financial crisis.

According to the Central Statistics Agency (BPS), annual
inflation in 2003 was 5.06 percent, the lowest year-on-year rate
in four years.

Unilever is projected to post further strong growth this year,
as consumer spending is estimated to remain strong, particularly
during the general election, when political parties spend a lot
of money on campaigning.

Other factors that will drive strong consumption are strong
household savings, a low interest rate environment and the
predominantly young Indonesian population.

Unilever profit and sales are estimated to rise at least 15
percent this year, according to a company executive, as quoted by
Bloomberg recently.

Unilever shares ended higher on the Jakarta Stock Exchange on
Friday, by Rp 25, to Rp 3,475.