Who doesn’t know Sido Muncul? This legendary herbal medicine company, $SIDO, has just announced good news for investors and lovers of herbal products in the country. Their net profit reached 393 billion rupiah in the 4th quarter of 2024, experiencing a surge of 8% YoY and even 132% QoQ. It’s crazy, isn’t it?
Encouraging 2024 Performance Record
During 2024, Sido Muncul managed to reap a total net profit of 1.17 trillion rupiah, recording a growth of 23% YoY. This achievement almost touched the consensus expectation which only predicted growth of around 10% YoY. This is very encouraging, especially since management is also targeting similar growth for this year. Who doesn’t want to see profits increase? All this thanks to pretty good revenue growth and ever-increasing margins!
Recovery of the ‘Herbal’ Segment
The ‘Herbal’ segment, which is the spearhead of Sido Muncul, also showed a very positive performance. Revenue from this main segment grew again to 943 billion rupiah, experiencing growth of 6% YoY and 118% QoQ. Ha, remember when this segment had a decline in Q3? Now, Sido Muncul shows how fast they are rising!
With total revenue growing 7% YoY in Q4 and 10% YoY during 2024, Sido Muncul is on the right track with management guidance. The gross profit margin also improved, rising to 62.9%. You can imagine how shiny their current performance is, right?
Investing in A&P: The Right Decision
Managing profits is important, and Sido Muncul seems to know what to do. They reinvest gross profits into advertising and promotion (A&P). Even though A&P’s expenses increased to 188 billion rupiah, the proportion of revenue was larger, you know! This shows how important branding and promotion are in their business. The A&P to revenue ratio increased from 10.9% to 11.7%.
With a flat but solid core operating profit, Sido Muncul hopes to score a core operating profit of 1.47 trillion rupiah with EBIT growing 24% YoY.
Ambitious Target in 2025
Looking ahead, Sido Muncul management targets revenue and net profit growth of 10% YoY each during 2025. This figure is higher than the consensus expectation which projected growth of around 8% YoY. If you are curious, there will be an earnings call from Sido Muncul management on Monday, March 10. It must be interesting to wait!
Conclusion
So, are you ready to see how Sido Muncul continues to move forward in 2025? With solid performance and the right strategy, they may be able to provide more surprises for shareholders. Given the market trend and smart management, who knows in the future Sido Muncul will shine even more in the herbal industry. Let’s see together again later!