Sido Muncul Stays Optimistic The Performance Grows Two Digits This Year
JAKARTA - Despite the challenges in the form of weakening the rupiah and rising raw material prices, PT Industri Jamu and Pharmacy Sido Muncul Tbk (SIDO) remain optimistic that they will be able to achieve double-digit performance growth by the end of 2022.One of Sido Muncul's strategies in the near future is through price increases. President Director of the Sido Muncul Herbal and Pharmaceutical Industry, David Hidayat, explained that the weakening of the rupiah did have an impact on the increase in the price of raw materials for beverage and packaging products."To overcome the inflation that occurred, we are trying to reduce costs, including production costs by doing some efficiency," he explained, quoted from Bisnis Indonesia, Monday, July 11.In addition to efficiency, the Tolak Angin producer also made adjustments to the selling price of some of its products. He emphasized that he had developed a strategy to anticipate inflationary pressures and weaken the rupiah, so as not to reduce the company's performance.That way, SIDO is still optimistic about pursuing double-digit growth at the end of this year. On the other hand, the company also gets increased export demand, although the contribution to total revenue is still not too large."Incidentally, the increase in export demand has increased but it's not too big. Our export contribution has only reached 5 percent of total revenue," he said.For information, Sido Muncul earned sales growth of 11 percent to Rp880 billion compared to the previous year. In line with sales growth, net profit also recorded a solid growth of 10 percent to Rp295 billion from the previous year in the same period of Rp269 billion.