Sido Muncul Genjot Profit Growth In This Way

JAKARTA - Pharmaceutical and herbal medicine companies, PT Industri Jamu and Pharmacy Sido Muncul Tbk (SIDO) have prepared a plan to be able to increase profit growth in 2022. This will be done by the company by boosting revenue and efficiency in Cost of Goods Sold (COGS) or Sales Basic Prices (HPP).

Sido Muncul Finance Director Leonard said his party would encourage the supply of goods, especially at wholesale and retailer levels. This is done by increasing wholesalers and retailers with a target of 140 wholesalers and retailers.

"We also make sure that our goods are at all channel distribution levels," Leonard said at the 2022 Public Expose on Friday last weekend.

Leonard explained, SIDO management sees the importance of growth in online buying and selling. Online sales provide greater benefits in addition to high profitability.

In addition, Leonard continued, SIDO also plans to launch new products this September. The product is still in the pipeline stage and is expected to contribute in the fourth quarter of 2022.

"We are also starting to actively spend digital marketing in certain products," said Leonard.

Meanwhile, SIDO is ready to distribute dividends of up to 90 percent of the total net profit. However, Leonard admitted that he could not mention the nominal because he was still waiting for a decision from the board of directors.

"This must be decided at the board meeting. But we always distribute dividends, it's 90 percent of profit, usually," said Leonard.

Based on the financial statements as of June 30, 2022, SIDO's sales performance fell 2.58 percent to Rp1.61 trillion compared to the same period last year of Rp1.65 trillion. The decline in SIDO sales resulted in net profit.

The cost of goods sold decreased by bottom line. SIDO's net profit fell 11.24 percent on an annual basis to Rp445.59 billion compared to Rp502 billion in the same period last year.