3Q26 Top-line

3Q26 net sales rose 7.4% YoY and 4.7% QoQ to IDR8.85tn (9M26: IDR25.75tn, +7.2% YoY), fifth straight quarter of volume-led growth. Domestic +7.3% YoY on volume +6.4% YoY, price +0.9% YoY; home & personal care +8.5% YoY, foods +4.1% YoY on price. Export +10.3% YoY.

3Q26 Bottom-line

3Q26 continuing net profit grew 11.1% YoY and 48.5% QoQ to IDR1.23tn (9M26: IDR3.31tn, +10.6% YoY). Gross profit fell 9.1% YoY, offset by 16.1% YoY lower marketing cost, IDR104bn other income and 18.8% tax rate. Reported 9M26 profit IDR4.20tn incl. IDR870bn SariWangi gain.

 

9M26 Cost Structure

9M26 cost of goods sold rose 15.0% YoY vs 7.2% YoY sales growth, cutting gross margin 373bps YoY to 45.1%. Distribution cost +35.1% YoY on outer-island logistics; royalty and service fees +13.7% YoY to 7.1% of sales. Advertising & promotion fell 18.1% YoY to 10.1% of sales.

 

Important Ratios

9M26 gross margin 45.1% (9M25: 48.9%), 46.1% excl. transformation cost. Operating margin 15.9% (16.6%); net margin 12.9% (12.5%) on net finance income and 20.4% tax rate (23.3%). Annualised return on average equity 101.8%; stock trades at 12.3x annualised 9M26 P/E.

 

Positive Catalysts

UNVR’s premiumisation strategy should cushion profitability amid challenging operating conditions. Notably, its premium business gained traction, driving market share gains in the segment.

Key Risks

Continued IDR depreciation, rising input costs, and weaker domestic purchasing power have limited the company’s ability to pass on price increases, leading to downtrading that weighed on overall margins.