Sido Performance Projected Analysts Appear In 2025 Will Continue Solid Growth Trends

Director of Sido Muncul, Irwan Hidayat. (Photo: Doc. Sido Muncul)

JAKARTA - PT Industri Jamu dan Pharmacy Sido Muncul Tbk (SIDO) targets revenue growth of 10 percent on an annual basis or year on year (yoy) in 2025.

Lead Investment Analyst Stockbit Edi Chandren said based on SIDO management's statement that revenue growth would be more driven by sales volume than price increases.

"SIDO itself has raised the selling price of Tolak Angin products in line with inflation in early 2025, while the selling price of coffee-related products and milk has been increased at the end of the fourth quarter of 2024 by mid high single digits to respond to the increase in raw material prices," he explained in his research, Tuesday, March 11.

Edi added that SIDO's decision to again increase the selling price will be carried out selectively considering the condition of purchasing power and the price of raw materials.

Segmentally, Edi said that in 2025 the F&B segment is projected to continue a solid growth trend like throughout 2024 which grew 18 percent (yoy).

According to him, this growth was mainly driven by expectations of strong construction activities both domestically and in the main export market of SIDO such as Malaysia.

Edi said that in the Herbal segment, SIDO management highlighted the strong growth shown by Esemag products, although its contribution to total sales of the Herbal segment was not too significant because it had only reached mid high single digits.

"Esemag's sales volume is said to have doubled in the previous 2 months of this year, driven by strong demand for products for herbal-based MAG and GERD," he said.

Geographically, the contribution of the export market is targeted to increase to around 9 percent to 10 percent throughout 2025, an increase compared to 2024 which grew 7 percent, applying the potential for strong growth continuation throughout 2024 of 36 percent (yoy).

Edi said that after recording an increase in the gross profit margin of 210 bps in 2024, SIDO management saw that the gross profit margin for the Herbal segment would tend to be stable, taking into account the price condition of raw materials.

Meanwhile, the F&B segment has the possibility of again experiencing an increase in gross profit margins when compared to 2024 which grew 39.8 percent in line with the prices of several main raw materials which are still in a downward trend and a larger economic scale or the big economy of scale from solid volume growth expectations.

In terms of operational costs, commercial and promotional expenditures (A&P) in general will still be maintained in the range of 10 percent to 12 percent of total revenue when compared to 2024 of 11.7 percent.

Edi conveyed that with a relatively good margin prospect, his party assessed that the achievement of the net profit growth target of 10 percent (yoy) would depend mainly on achieving the revenue target.

Meanwhile, Edi considered that the expectation of net profit growth in 2025 from consensus at the level of 4 percent (yoy) was relatively easy to achieve, so consensus could potentially increase its expectations.

In addition, SIDO allocated a slightly lower capex this year in the range of IDR 150 billion to IDR 175 billion when compared to the 2024 allocation of IDR 150 billion to IDR 200 billion, although last year's realization was low at the level of IDR 46 billion.

SIDO management plans to maintain a dividend payout ratio above 90 percent, applying dividends per share of a minimum of IDR 35 per share.

Meanwhile, if this is reduced by an interim dividend of IDR 18 per share paid in November 2024, the SIDO final dividend has the potential to reach IDR 17 per share and indicates a minimum dividend yield of 3 percent as of Monday, March 10.