EVALUATING PT UNILEVER INDONESIA TBK’S 2019 - 2023 FINANCIAL PERFORMANCE USING PROFITABILITY RATIO

• Main Author: Adryandi Santoso, Qesvin
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/85696
• Institution: Institut Teknologi Bandung

In the modern diversified and dynamic business environment, each organization needs to have an adequate financial strategy if it intends to survive long and prosper. PT. Unilever Indonesia Tbk is one of the leading companies in Indonesia's FMCG business, with a broad portfolio comprising leading brands in food and beverages, personal care, and home care. The current paper discusses the financial position of PT. Unilever Indonesia, from 2019 to 2023, is the time frame that has it all: all kinds of obstacles. First and foremost, there is the COVID-19 pandemic, which drove a deep wedge into consumer behavior, market trends, and the overall activities of this company. To predict performance and efficiency for Unilever Indonesia, several profitability ratios were considered: gross profit margin, net profit margin, return on assets, return on equity, and operating profit margin. It further compares the financial performance of Unilever Indonesia to that of the closest FMCG competitors in Indonesia, PT Indofood and PT Mayora Indah. This therefore gives a full view of the standing of Unilever within the industry. Even though the profitability ratios are higher for Unilever Indonesia, by 2023, PT Indofood developed into an industry leader in sales, assets, and market presence-meaning, with leverage from its significant assets, the company has dominated the market. Such a difference suggests that the strategy of PT Unilever Indonesia is aimed at efficiency and profitability, while the strategy of PT Indofood is market share and volume-oriented. These findings underline the following: profitable competitive advantages through effective resource management in a dynamic environment are sustained by strategic positioning. Such a study provides valuable insight to investors, market analysts, and the company itself, pointing out that continuous monitoring of financial ratios is necessary to determine the financial health of the companies. It reflects the diversified strategies of the major FMCG companies on profitability and competitive advantage to facilitate future strategic choices toward sustainability and growth in an extremely competitive marketplace.