JAKARTA - PT Sido Muncul Herbal and Pharmaceutical Industry Tbk (SIDO) is predicted to be able to record a brilliant performance this year. Moreover, in the first quarter of 2022, there has been a significant growth in the performance of the producer of Tolak Angin and Kuku Bima Ener-G.

In the first three months of 2022, Sido Muncul posted an increase in sales of up to 10.97 percent on an annual basis or year on year (yoy) to Rp.880.49 billion. The company's net profit also increased 9.66 percent yoy to Rp295.03 billion in the January-March 2022 period.

In a research by BRI Danareksa Sekuritas written by Natalia Susanto, it was stated that SIDO's performance record during the first three months of 2022 was supported by SIDO's strong international business growth, reaching 125 percent yoy.

The research also revealed, for Nigeria, the company will focus on expanding in the northern region of the country in order to take advantage of higher demand during Ramadan and the opening of new outlets.

In Malaysia, SIDO will focus on offering Kuku Bima Energi (KBE) specifically for the East Malaysia region and strengthening the availability of Tolak Angin in modern market channels. SIDO will also strengthen the export market in the Philippines.

In the second quarter of 2022, the company seeks to expand its export market to Senegal, Benin (West Africa), and Vietnam. The next target is China in the third quarter of 2022.

"The export contribution is estimated to be around 5-7 percent of total revenue throughout 2022," explained research by BRI Danareksa Sekuritas.

In addition, SIDO's performance will be supported by increased mobility and homecoming celebrations in the second quarter of 2022. Previously, SIDO management was optimistic that Tolak Angin sales would grow in line with improved mobility and homecoming celebrations, so the contribution of the herbal segment is expected to increase in the second quarter.

Meanwhile, in the Food and Beverages (F&B) segment, SIDO has increased its Average Selling Price (ASP) by around 3 percent to 4 percent to deal with rising aspartame costs so that margins can be normalized in the second quarter of 2022. Volume growth in the F&B segment will be supported by domestic and export sales, particularly in Nigeria and Malaysia.

For your information, SIDO has not increased ASP in the F&B segment for the last two years. Therefore, its products can be sold 25 percent cheaper than its competitors.

With higher ASP and strong demand, SIDO management is optimistic about the recovery of margins for the F&B segment in the second quarter of 2022. Strong margins in the herbal segment are projected to continue. As for the pharmaceutical segment, SIDO is now involved with national distributor companies that will support stronger growth in the future.

BRI Danareksa Sekuritas estimates SIDO's sales could reach Rp4.6 trillion, with a net profit of Rp1.43 trillion throughout 2022. SIDO's performance so far is also in line with the estimated solid performance growth.


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