Sido Muncul Explains Weakening Of Rupiah Does Not Disturb Business Performance

Rupiah and US Dollars (Photo: dock. Antara)

PT Sido Muncul Tbk (SIDO) assesses that the weakening of the rupiah exchange rate against the United States (US) dollar can still be minimized and has no significant impact on the Company's performance in 2024.

Sido Muncul President Director David Hidayat revealed that admitting that SIDO's current rupiah pressure on the dollar has not had a significant impact on the Company's performance in 2024.

"Because most of our production raw materials are purchased from local farmers, the impact of the weakening of the Rupiah on the Company's performance is not significant," he told VOI, Wednesday, July 10.

David said the Company is optimistic that its performance will grow positively until July 2024, as seen from the performance until the first quarter of 2024, SIDO's sales have increased by 16 percent compared to the previous year.

"As of March 2024, SIDO sales rose 16 percent compared to the previous year and for the performance of the second quarter it will be announced at the end of July," he said.

According to David, the sentiment that affects the Company's performance comes from people's purchasing power. But currently people's purchasing power is stable amid global uncertainty.

"The purchasing power of the community has affected the company's performance, but so far we have seen that people's purchasing power is still relatively stable to support their business as a whole," he explained.

David targets the Company's revenue and net profit growth by the end of 2024 to increase by a minimum of 10 percent compared to the previous year.

For information, SIDO recorded sales of IDR 1.05 trillion in the first quarter of 2024, an increase of 16.1 percent compared to the same period last year of around IDR 907.3 billion.

Meanwhile, the profit for the year recorded was IDR 390.4 billion in the first quarter of 2024, an increase of 30 percent compared to the first quarter of 2023 of IDR 300.2 billion.