The Effect of Before and After the Boycott Action on the Financial Performance of PT Unilever Indonesia Using Profitability Ratios

Abstract

This study aims to analyze the impact of a boycott on the financial performance of PT Unilever Indonesia Tbk, using profitability ratios as indicators. The boycott of Unilever products emerged due to global social and political sentiments that affected consumer perception in Indonesia, especially after rising humanitarian issues in the Middle East. The boycott is suspected to have affected the company's financial performance through reduced sales and pressure on net profit. The research uses a descriptive quantitative approach, comparing profitability ratios before and after the boycott, measured through Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin (NPM). Secondary data was collected from the annual financial reports of PT Unilever Indonesia Tbk for the period 2021–2024, published through the Indonesia Stock Exchange (BEI). The analysis results show that after the boycott, ROA and NPM decreased, indicating reduced efficiency in generating profit, while ROE fluctuated due to changes in equity composition. However, statistical tests showed that the difference in performance before and after the boycott was not statistically significant, meaning the impact of the boycott on the company's profitability was limited. These findings suggest that the company's strong brand, consumer loyalty, and marketing strategies helped mitigate the negative effects of short-term social pressure. This study contributes to understanding the relationship between social pressure, corporate reputation, and financial performance, and provides managerial implications for multinational companies in managing reputation risks amid increasingly complex social dynamics.