Drawing Breath; a Short Time
Key Takeaways :
▪️UNVR delivered a strong rebound in net profit of +136.7% QoQ/+3.1% YoY to IDR1.4 tn in 1Q24. 1Q24 net profit was mainly driven by higher OPM given moderation in commodity prices, and a reduction in the Central Service Agreement (CSA) per revenue to 5.1% (vs 7.3% in 1Q23).
▪️UNVR's 1Q24 performance shows some significant improvements, but still leaves some notes. We note that the positive UVG results were followed by an increase in AMP cost per revenue to 13.2% (vs 11.5% in 1Q23). Underlying Price Growth (UPG) in 1Q24 for domestic markets experienced a significant decline of -4.9% YoY, worse than 4Q23 at -2.4% YoY.
▪️UNVR yielded -25% YTD, which we believe complies with muted prospects due to the stubborn consumer sentiment. Moreover, the contraction in stock prices in-line with the net foreign outflow we recorded at IDR61.7 bn until 4M24. We do not see its solid results in 1Q to be sustained through the end of year.
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