Unilever Indonesia stock faces lower forecasts despite volume growth

Unilever Indonesia is sustaining its sales recovery, but higher input costs are limiting the earnings outlook. In a research report published on Thursday, November 5, BRI Danareksa Sekuritas cut its fiscal 2026 to 2028 earnings estimates by 3.4% to 7.2% and lowered its target price to IDR 1,900 while retaining a Buy rating. The findings are available in the BRI Danareksa research report.

What Has Changed Since Our Last Report

The report adds detail on the company's pricing response. Unilever Indonesia introduced two selective price increases of about 5% in June and August 2026, focused on home care and skin-cleansing products with greater exposure to palm oil and energy costs. Further increases are planned for the fourth quarter and 2027.

Premiumization is another focus. The premium segment was growing nearly twice as fast as the non-premium segment and accounted for 32% of the market mix in July 2026, according to the research report. That mix can support revenue quality, but it does not remove the pressure from commodities and logistics.

Volume Growth Faces Cost Pressure

Unilever Indonesia reported third-quarter sales of IDR 8.9 trillion, up 7.4% year on year, with underlying volume growth of 6.4%. Sales for the first nine months rose 7.2% to IDR 25.8 trillion, while continuing-operations net profit increased 10.6%, according to the company's third-quarter results release published on October 22.

BRI Danareksa said third-quarter gross margin fell to 42.3% as crude palm oil and crude oil prices rose, while logistics costs increased for distribution beyond Indonesia's main islands. Transformation costs reached IDR 57 billion in the quarter after IDR 170 billion in the first half. Management now targets a 40% to 50% year-on-year reduction in transformation costs for 2026.

Unilever Indonesia stock traded at 0.08 euros on Lang & Schwarz at 09:44 CET on Tuesday, November 10, 2026.

Indonesia's consumer sector remains focused on balancing volume growth, pricing and cost control; Current market reports provide the broader market context.

The next defined corporate milestone is the electronic extraordinary shareholder meeting scheduled for November 26, 2026. More news and analyses on Unilever Indonesia stock.