UNVR – Targeting net profit of IDR6.8 tn from ice cream segment sale

UNVR – Targeting net profit of IDR6.8 tn from ice cream segment sale Unilever Indonesia (UNVR) is targeting net profit of IDR6.8 tn through the sale of its ice cream segment to Magnum Ice Cream Indonesia. UNVR has signed a business transfer agreement with Magnum Ice Cream Indonesia on November 22, 2024, with a transaction value of IDR7 tn. Note that, the ice cream segment contributed 9.5% of UNVR's total revenue in 2023. However, this contribution has been declining consistently. The profitability of the ice cream segment has also been on a downward trend over the past five years, with a net profit margin of 7.2% as of 2023. The market share of the ice cream segment has also dropped to 61.9% as of September 2024. Additionally, the ice cream segment's capex accounts for approximately 8% of its sales, significantly higher than UNVR's overall capex ratio of 3% of sales. (Source : Bisnis Indonesia)