Financial Performance Ratio Analysis of PT Unilever Indonesia Tbk Post-Pro Israel Product Boycott Movement

Abstract

Purpose – This research aims to analyze how the financial performance of a company, particularly PT Unilever Indonesia Tbk, has been affected by being targeted in the boycott related to the Israel-Palestine conflict.

Design/methodology/approach – The study focuses on key financial performance indicators, including four profitability ratios: Gross Profit Margin, Net Profit Margin, Return on Assets, and Return on Equity. These ratios were calculated based on the financial reports of PT Unilever Indonesia Tbk from 2022 through the first quarter of 2024.

Findings – The analysis reveals that the initial phase of the boycott in the fourth quarter of 2023 resulted in a significant decrease in the company’s financial performance, particularly in terms of sales. However, there was a slight recovery by the first quarter of 2024 as the company began to implement strategies to cope with the boycott. The findings highlight the impact of external geopolitical factors on company performance and underscore the importance of strategic financial management in times of crisis. Keywords: boycott, financial ratios, Israel, Palestine, profitability.

Research limitations/implications – PT. Unilever Indonesia Tbk, as one of the business units in Indonesia impacted by the call to boycott products or companies suspected of being pro-Israel, has experienced a negative impact, i.e., a decline in domestic sales in 2023. This decline was noted in November and December 2023, since the boycott calls were made. However, it is known that in the first quarter of 2024, their domestic sales value rebounded, although still below the sales value in the first quarter of 2023