ISSUER NEWS - JAKARTA. PT Industri Jamu Dan Farmasi Sido Muncul Tbk (SIDO) or Sido Muncul is optimistic about increasing revenue and net profit this year. Where Sido Muncul targets a 15% performance increase in 2024.
Sido Muncul's CEO David Hidayat revealed, that this optimism is in line with the prospects of health products, especially herbal medicine and supplements, which are still promising in the future.
According to him, health is a primary need of the community, no matter the cost, it will be pursued to obtain it. Public awareness to live healthily encourages the development of the pharmaceutical business to continue to innovate and provide health solutions for the community.
"The shifting mindset of the community to return to nature encourages pharmaceutical companies to develop health products derived from nature/herbs. We as an herbal medicine company have started innovation to make herbal medicine easy to consume and liked its taste as an alternative to chemical drugs, especially for maintaining health/prevention," said David to KONTAN, Monday (12/2).
With this view, SIDO sees the prospects of the pharmaceutical or herbal industry are still very good this year.
To maximize its sales, SIDO has prepared several initiatives, namely consistently distributing the network to reach more outlets selling Sido Muncul goods, so that the community can easily access SIDO products.
In addition, the company cuts the distribution chain and collaborates with companies that have a national network, expanding the export market which it is currently in Asia, Indo-China, Arabian Peninsula, and Africa to add new products that have been prepared. "We hope to launch at least two new products this year," he said.
To achieve growth and realize the initiatives mentioned above, SIDO also plans to make changes, by adding some key positions with professional personnel expected to execute the company's program.
From the capital expenditure or capex side, David said, this year the budget deployed is around IDR 102 billion. The use of these funds is for maintenance or addition of production equipment or research and laboratories.
As additional information, until the end of September 2023, SIDO recorded net sales of IDR 2.36 trillion which decreased by 9.7% compared to the same period last year.
All SIDO business segments recorded a decrease in sales compared to last year, such as the herbal segment which fell 12.1%, the food & beverage segment decreased by 2.6%, and the pharmaceutical segment corrected by 25.6%.
Meanwhile, SIDO's net profit in the third quarter of 2023 also fell by 18.58% to IDR 586.57 billion compared to the third quarter of 2022 which was IDR 720.44 billion.