Sido Muncul Budgets Capital Expenditures Of IDR 197 Billion This Year, Used For Anything?

Illustration. (Photo: Doc. Sido Muncul)

JAKARTA - PT Industri Jamu dan Pharmacy Sido Muncul Tbk (SIDO) has allocated capital expenditure (capex) of IDR 197 billion in 2023. This figure is not far from the capex allocation in 2022 of IDR 200 billion.

"We set a capex budget of IDR 197 billion to add some production equity, both at Sido Muncul and its subsidiaries," said Sido Muncul's Main Director David Hidayat, in mid-January, quoted on Wednesday, January 25.

The issuer producing herbal product Tolak Angin also stated that the capex allocation would also be used to complete the green house project. The project, which has been rolling since 2021, was developed to assist farmers from SIDO in observing superior seeds for raw materials.

As for the realization of the 2022 capex absorption, David said, SIDO was in the middle of conducting years-end financial candidates so it could not yet confirm the impact value. However, when referring to the financial reports as of September 2022, Sido Muncul was recorded as having disbursed IDR 102.98 billion for investment activities.

"Currently we are closing, so we can't inform yet," said David.

This year, Sido Muncul itself is targeting a maximum sales increase of 15 percent and is optimistic that it will be achieved even though sales are still corrected as of September 2022. According to David, the potential for growth in 2023 is driven by a number of factors, namely the addition of new products both for export and locally. Sido Muncul will also add business-to-business (B to B) sales channels for raw materials herbal products and applications products.

Sido Muncul shares to explain the export market for East Africa, in line with the start of exports to Kenya.

"Indeed, we are targeting East Africa by neutralizing Kenya and then moving on to Tanzania and Uganda for Rejecting Angin and energy drink products," said David.

In addition, Sido Muncul also stripped to introduce sales in the existing market by adding new products that are in acordance with trends and the level of consumer awareness on health.

Sido Muncul's sales in the third quarter of 2022 reached IDR 1.0 trillion. This figure induced by 37 percent compared to sales in the second quarter of 2022 which was only IDR 731.60 billion.

Net profit also relative 83 percent to the previous quarter, from IDR 150.52 billion to IDR 274.88 billion.