Sido Muncul Believes Business Prospects In The Future Are Still Bright

Photo: Doc. Sido Muncul

JAKARTA - PT Industri Jamu and Pharmacy Sido Muncul Tbk (SIDO) or Sido Muncul believes that the company's business prospects are still bright ahead. Sido Muncul is also optimistic that performance in 2024 will grow positively.

Sido Muncul Finance Director Leonard said that his party will continue to expand the Tolak Angin product in several areas where penetration is still minimal. In addition, for Kuku Bima products, there is still a chance to grow, especially in the international market.

"We see that Tolak Angin has 73-74 percent market share and we can still expand in several areas where we think penetration is still lacking. For Kuku Bima, we still think the growth is still there, especially in the international market," he said at the Public Expose Live 2023, last week.

In addition, he saw that there were two new products that were well received by the community, namely ESEMAG and Alangsari. So, he hopes that the two products can become one of the biggest contributors in the future.

In addition, Sido Muncul also recently launched a coffee product product as one of the company's strategies, namely Tentrem Coffee. Leonard sees that the size market for coffee is quite large and the company also wants to enter the coffee segment.

Thus, Sido Muncul targets an increase in revenue and net profit above 10 percent next year. This optimism is in line with the condition of the community who are starting to realize the importance of health.

"For the 2024 target, we have not completed the budget, but usually we always target positive growth, usually the target is above 10 percent of the top line and bottom line," he said.

In order to boost its business, Sido Muncul will continue to carry out initiatives that can maintain and improve the company's financial performance. In addition to launching new products, the company expands its distribution and a number of efficiency.

"Management is still confident that in the long term as awareness of healthy living increases, the push for consumption of herbal products will continue to increase and will be guaranteed in our performance which will increase in the years ahead," Leonard said.

On the other hand, he explained, Sido Muncul has realized capital expenditure (capex) of around Rp50 billion to date. This means that it is still far from the 2023 capital expenditure target, which is Rp200 billion. So, by the end of this year, it is possible that capital expenditures will be absorbed by Rp150 billion.

"In the end, we may realize up to Rp150 billion," he said.