Sido Performance Analysis Appears: Increasingly Growing Until The End Of 2023

Photo: Instagram @sidomuncultbk

JAKARTA - The performance of PT Industri Jamu and Pharmacy Sido Muncul Tbk (SIDO) is considered to be getting worse until the end of 2023. This cannot be separated from the factor of increasing people's purchasing power, product involution, and strengthening distribution networks that the company continues to carry out.

RHB Sekuritas Indonesia in its research said that sales of modern herbal products are predicted to remain the main mainstay of supporting Sido Muncul's financial performance growth going forward.

"The increase in public awareness of health along with the tendency to take herbal medicines is a factor that strengthens the company's financial performance in the future," wrote Ruset RHB Sekuritas, quoted Friday, July 21.

In the midst of growing public awareness of health, Sido Muncul is the one who benefits the most as a market leader for herbal products, especially Tolak Angin, with a large profit margin.

In addition to these factors, the company's financial performance growth will be supported by product innovation. The company has previously launched a new Esemag product that received a positive response from the market.

Likewise, the food and evidence business shows the potential for strengthening. This segment is expected to support future financial performance growth.

The growth of the issuer coded as SIDO shares will also be supported by strengthening the distribution network. According to him, this strengthening will certainly expand the company's market potential both through modern and traditional retail networks

Meanwhile BRI Danareksa Sekuritas assessed that explaining the performance of the bottom line in the first quarter of Sido Muncul was able to grow because it was saved by operational cost efficiency. This follows growth which is limited to its financial performance.

For information, SIDO recorded sales of Rp907.30 billion or grew 3.04 percent on an annual basis (YoY). Meanwhile, net profit grew 1.78 percent YoY to Rp300.28 billion.

For revenue, the driving force from growth in the food and beverage segment (F&B) is 7.1 percent YoY due to stronger exports and the support of its new product, RTD Alang Sari.

BRI Danareksa Sekuritas expects better overall sales of SIDO products in the second quarter. This is due to the level of stock in retailers and wholesale which is still at a low to normal level.

"Therefore, we expect stronger sales in May and June 2023 will support revenue in the second quarter of 2023," the research explained.

Overall, BRI Danareksa Sekuritas estimates that SIDO posted revenue of IDR 4.32 trillion or grew 11.91 percent YoY. Meanwhile, net profit is estimated to grow 12.72 percent to IDR 1.24 trillion.