Unilever to maintain profit by cutting production costs

Unilever to maintain profit by cutting production costs

The Jakarta Post, Jakarta

Leading consumer goods producer PT Unilever Indonesia Tbk plans
to maintain last year's profit margin of 22.7 percent by cutting
production costs.

The company -- which focuses on goods like soaps, detergents,
personal care items and food -- said in its annual report that
its operating profit soared to Rp 2.04 trillion (US$212.5
million) in 2004 from Rp 1.77 trillion in 2003.

Unilever corporate secretary Franky Jamin said after a
shareholders meeting on Thursday that to maintain profit, the
company would increase its production efficiency.

"This effort includes using thinner packages and improving
factory logistics," he said.

Unilever president director Maurits Lalisang said despite the
rising price of plastic and oil, which hit $54.67 per barrel in
the London market on Thursday, the company would boost efficiency
instead of raising retail prices.

The London/Rotterdam-based company, which has been operating
in Indonesia for 72 years, said in its report that this year's
first quarter net income reached Rp 421 billion, 46 percent
higher than the Rp 376 billion in the corresponding period last
year.

During the meeting, shareholders approved a dividend of Rp 80
per share, to be paid next month.

The shareholders also appointed Lasiola Ladorso as the new
director of home care and Bambang Subianto as an independent
commissioner.

Maurits said Unilever should expand its market to maintain
high sales growth and to compete with U.S. company Procter and
Gamble and local consumer goods producer Wings Corp.

"We are trying to keep annual sales growth at 10 percent," he
said, adding that the effort included keeping prices competitive,
launching new products and pursuing acquisition opportunities.

He said business acquisitions accounted for 13 percent to 15
percent of the company's total sales. Last year's net sales
increased by 86 percent to Rp 8.98 trillion from Rp 8.12 trillion
the year before.

Maurits said the company would introduce 70 new products this
year, compared to 60 last year. Unilever currently sells about
500 products under 33 brands -- including Walls ice cream, Bango
soybean sauce, Blue Band margarine, Sunsilk shampoo, Lux and Dove
soaps and Pepsodent toothpaste.

"Seventy-nine percent of nationwide sales come from home and
personal care products, while the remaining are from food and ice
cream," he said. (001)