Performance Of Cemerlang In The First Quarter Of 2024, Sido Muncul Enjoys The Bright Period After Lebaran Moment

JAKARTA - The performance of the pharmaceutical issuer PT Industri Jamu and Farmadi Sido Muncul Tbk (SIDO) has been successful throughout the first quarter of 2024. This is believed to be consistent until the end of the year.

In terms of the first 3-month performance report card this year which was recently released, SIDO recorded a net profit of IDR 390.49 billion, or an increase of 30.04 percent year-on-year (YoY) compared to the first three months of 2023 of IDR 300.27 billion. The increase in SIDO's net profit driven by sales which also increased 16.10 percent YoY to IDR 1.05 trillion in the first quarter of 2024, compared to the same period in 2023 of IDR 907.3 billion.

In detail, based on the segment, SIDO's sales were supported from herbal herbs and supplements of Rp. 626.88 billion, followed by food and drinks of Rp. 396.11 billion, and pharmaceuticals of Rp. 30.42 billion.

Even though the income increased by double digits, SIDO managed to reduce the cost of the principal by only slightly increasing by 0.99% to Rp428.31 billion, compared to the same period the previous year of Rp424.1 billion.

As a result, the company's gross profit jumped 29.37% YoY to Rp625.11 billion, from the position in the first quarter of 2023 of Rp483.19 billion.

Meanwhile, the cash and cash equivalents for the SIDO period fell slightly by 0.22% to Rp1.101 trillion as of March 31, 2024, from the same position in 2023 of Rp1.104 trillion.

Based on the balance sheet, SIDO's total assets were observed to increase to IDR 4.25 trillion in the first three months of 2024, compared to the position as of December 31, 2023 of IDR 3.89 trillion. The company's liabilities rose to IDR 460.72 billion, compared to the position at the end of 2023 of IDR 504.76 billion.

Meanwhile, SIDO's equity rose to IDR 3.79 trillion in the first quarter of 2024, compared to December 2023 of IDR 3.38 trillion.

Ciptadana Sekuritas Asia analyst Putu Chantika Putri in her research explained that the Lebaran season is one of the main lighters for increasing demand for Sido Muncul products. In addition, SIDO is currently also enjoying an increase in margins due to lower input costs and price increases in 2022-2023, while sugar and coffee prices are decreasing.

In terms of exports, the company is also accelerating its expansion to foreign markets that contribute 7 percent, with Vietnam's main target in the second semester of 2024 as well as introducing new export products.

Meanwhile, in the first quarter of 2024 export sales grew 44 percent YoY driven by strong performance in countries that became the main focus such as the Philippines, Malaysia, and Nigeria.

"Although the prospect is stronger driven by increased mobility during Eid, La Nina expectations in the second half will encourage the herbal segment, and increase penetration in the domestic market and exports," Putu said in a written statement, quoted Thursday, May 2.

SIDO will hold an Annual General Meeting of Shareholders (AGMS) on May 15, 2024, with the agenda of including the use of 2023 net profit and changes in the composition of the board.

A total of five meeting agenda items will be discussed, namely the approval of annual reports, the appointment of independent public accountants, the use of 2023 net profit, the determination of salaries and honorariums, and the approval of changes in the composition of the board.

In the agenda of determining the use of net profit in 2023, SIDO management will discuss the portion of dividend distribution to shareholders. Historically, the company has never been absent from distributing dividends in the last five years.

SIDO President Director David Hidayat ensured that the company will maintain the dividend payment ratio or dividend payout ratio for the 2023 financial year above 85 percent.