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In the third quarter, the Indonesia unit of the company has shown an 18% drop in revenue which is driven by a decrease in volumes

Unilever will make some drastic changes in Indonesia, its finance chief said on October 24. 

The consumers boycott the multinational brands in response to the Gaza war. This has worsened the existing distribution problems in the business.

In February, Unilever, the company that manufactures Dove soap, Knorr stock cubes, and Ben & Jerry's ice cream, initially announced that fourth-quarter sales in Southeast Asia are affected by consumers in Indonesia.

Underlying Sales Rose by 4.5% During the Period

The underlying sales rose by 4.5% during the period, falling short of the 4.2% forecast by experts, yet prices saw a modest rise of just 0.9% annually.

After getting better-than-expected quarterly sales, Chief Financial Officer Fernando Fernandez said the company plans to update its brand. This is due to societal change. 

Unilever’s Indonesia Unit Saw 18% Revenue Drop in Third Quarter

In the third quarter, the Indonesia unit of the company has shown an 18% drop in revenue which is driven by a decrease in volumes.

The company's CEO Hein Schumacher mentioned "long-standing issues" in the country. He said that the company is making some significant changes in Q3 and Q4 that are going to give results in the next quarter.

CFO Fernandez mentioned that restructuring the distribution network was in progress to ensure price stability, and the company's initiatives were starting to show positive outcomes.

Barclays analyst Warren Ackerman reported that Unilever’s Indonesian business has underperformed for almost a decade. He said, "Why should investors believe the turnaround this time will be any different storms we've seen in the past?" 

Fernandez  also said, "We have been recovering part of the share losses we suffer due to the consumer backlash that is related to the geopolitical situation in the Middle East, we have recovered around one-quarter of the share losses.”

Moreover, Unilever cut overall prices in Europe in the quarter, which boosted sales and volumes, as its ice cream, home care, and personal care all performed well.