Sido Muncul Maintains Positive Performance Amid Global And Domestic Pressure

Photo: Doc. Sido Muncul

JAKARTA - PT Industri Jamu dan Pharmacy Sido Muncul Tbk (SIDO) menunjukkan ketahanan kinerja yang luar biasa di tengah tekanan global maupun domestik, berhasil menduntukkan pertumbuhan stabil sepanjang Kuartal III-2025 dengan profitability yang tetap menjadi salah satu yang terbaik di industri.

This Tolak Angin producer recorded sales reaching IDR 2.73 trillion, or an increase of 4 percent compared to the same period last year, with net profit growing 5 percent to IDR 819 billion.

Winina Kartika, Head of Investor Relations SIDO, highlighted Sido Muncul's defensive business character as key to this stability.

Our growth remains consistent because core brands such as Tolak Angin maintain market share at 72-73 percent. This makes our business base very defensive," he said at the Issuer Talk OCBC Sekuritas, last Friday, November 21.

This growth was driven by strong demand in the herbal segment, which rose 4 percent led by the Tolak Angin Group, as well as a recovery in consumption of beverage and food products, where the FNB segment also grew 4 percent driven by sales of dairy and coffee products, with Kuku Bima still being the largest contributor to contributing around 60-65 percent of the FNB category.

In the midst of exchange rate and macro conditions, SIDO Director Budiyanto emphasized that the superiority of local raw materials is the main differentiating factor for Sido Muncul compared to competitors, which is also a pillar of the company's internal efficiency.

We do not import raw materials. Our partnership with more than 20 farmer groups maintains efficiency and quality. This makes us much more resistant to the weakening of the rupiah," he said.

This efficiency is reflected in solidly maintained profitability, with gross margins of 57 percent, operating margins of 38 percent, and net margins of 30 percent, as well as the financial balance position of zero debt and cash of IDR 771 billion as of September.

To maintain growth momentum, SIDO not only relies on a strong business base, but is also aggressive in expansion.

Export contributions have increased to 10 percent after growing 23 percent this year, with priority countries covering Malaysia, the Philippines and Nigeria, as well as expansion plans to Africa and Indochina.

Management targets export contributions to reach 15-17 percent in the next 3-5 years. In addition to expansion, the company's commitment to sustainability and responsible business practices is further strengthened, marked by the achievement of the Gold Proper award and recorded in the ESG index.

On the innovation side, SIDO strengthens the roadmap of products targeting Gen Z and millennials with new line launches such as C++ Collagen Strawberry Lemonade and standardized herbal supplements.

Winna Kartika added that the high operating cash flow allowed the company to remain aggressive in distributing dividends.

"We keep dividend payouts above 92 percent, even 100 percent in the 2024 financial year," he said.

SIDO has also realized a share buyback of IDR 253 billion until September. With the realization of a capex of IDR 37 billion from a total budget of IDR 150 billion to IDR 175 billion which is used for engine rejuvenation and strengthening production facilities, Budiyanto expressed optimism that a 5 percent growth target for sales and net profit in 2025 can be realized, adding that future strategic directions will remain focused on innovation, export, and efficiency.