Sido's Performance Appears Predicted To Grow Double Digits In 2022, Analyst: Thanks To Addition Of Outlets, Exports, And Digitalization Strategy

Director of Sido Muncul Irwan Hidayat together with DPR Chair Puan Maharani. (Photo: Doc. BPOM)

JAKARTA - PT Sido Muncul Herbal and Pharmaceutical Industry Tbk (SIDO) is projected to achieve double-digit performance growth. This was stated by analysts who assess SIDO's performance will be smooth as in 2021, which will grow in double digits.

Samuel Sekuritas analyst Pebe Peresia said that the growth trend of Sido Muncul's financial performance would be supported by a number of factors, such as increasing the number of outlets, expanding export market targets, product innovation, and the company's digitalization strategy.

"We assess that the increase in Sido Muncul's performance last year was driven by the opening of 22,000 new outlets to 135,000. We estimate that this figure will continue to increase to 150,000 outlets this year with the main target being areas outside Java," Pebe said in his research, quoted on Saturday, February 26.

Pebe said Sido Muncul's performance last year was supported by an increase in export sales reaching 86 percent and contributing around 4 percent to total revenue in 2021. He also estimated that the contribution of export sales could increase to 6 percent in 2022.

"This is supported by the expansion of the target market to several countries and the sale of essential oils with the target market of Europe and America," he explained.

Furthermore, Pebe said, Sido Muncul's product innovation and digital strategy will also support the growth of the Tolak Angin producer's financial performance this year.

Pebe also highlighted the company's success in scoring a gross profit margin of 56.9% in 2021 or an all-time high for the company.

"We consider this increase to be driven by stable raw material prices along with an increase in the average selling price of the company's herbal products," he said.

So that Samuel Sekuritas targets an increase in Sido Muncul's net profit to Rp1.44 trillion in 2022, compared to last year's Rp1.26 trillion. The company's revenue is also expected to increase from IDR 4.02 trillion to IDR 4.60 trillion.