Sido Appears Optimistic Performance Until The End Of The Year Positive Driven By Consumer Shopping Recovery

Illustration (Photo: Doc. ANTARA)

JAKARTA - PT Industri Jamu Dan Pharmacy Sido Muncul Tbk (SIDO) is optimistic that SIDO's performance until the end of the year will be positive, supported by consumer spending recovery and various strategic initiatives.

"The company will focus on introducing new products, utilizing social media to increase brand and product awareness, improve the quality of outlets through the MY SIDO MUNCUL application, expand and improve export market performance, and maintain cost efficiency," said Company President Director David Hidayat in his statement, Friday, May 17.

In addition, David said that the company has also signed a Sub Distributor Appointment Cooperation Agreement with PT Atri Distribindo, which is an Alfamart group, to shorten the distribution path for modern trading channels in increasing sales and profit margins.

"Similar cooperation will be developed for the modern trade channel of other companies," he said.

As for the first quarter of 2024, SIDO recorded net sales of IDR 1.05 trillion, or an increase of more than 16 percent compared to the same period the previous year.

David said that all business segments experienced sales growth, driven by an increase in volume both in the domestic and international markets.

Meanwhile, export sales also grew by 44 percent, with a 7 percent contribution to total sales in the first quarter of 2024.

David said the trend of increasing consumer spending in 2024 began to be seen compared to the previous year.

In addition, various marketing and promotional programs, as well as the use of social media to increase brand awareness, managed to improve SIDO's performance in the first quarter of this year.

Meanwhile, in terms of profitability, the gross profit margin increased to 59 percent in the first quarter of 2024, up from 53 percent in the first quarter of 2023.

David said the increase in gross profit was driven by efficiency in indirect operating costs and lower raw material prices, especially for the food and beverage segment after the normalization of the supply chain.

While operating expenses, including advertising and promotional expenses, as well as administrative and general expenses, grew by about 10 percent, but remained lower than sales growth.

Therefore, operating profit margins increased to 47 percent compared to 42 percent in 2023. Net profit after tax reached IDR 390 billion in the first quarter of 2024.

For information, PT Industri Jamu Dan Farmasi Sido Muncul Tbk (SIDO) decided to distribute a final dividend of IDR 540 billion or IDR 18 per share, at the Annual General Meeting of Shareholders (AGMS) which was held on May 15, 2024.

Previously, SIDO had distributed an interim dividend of IDR 12.6 per share in November 2023, so that the Company has distributed a dividend of 97 percent of its 2023 net profit.

"Along with positive business performance, we remain committed to maximizing value for shareholders, one of which is through dividend distribution," he said.

As is known, in the last 5 years, SIDO's dividend payment ratio has always been above 85 percent.

This strong performance is supported by the Company's healthy financial condition and a stable cash position.